Save up to 8% to 12% on Your PG&E Gas Bill
PG&E Offers Their Customers a Gas Supplier Choice
Information directly from PG&E’s website.
Choose Your Own Natural Gas Supplier
What is Core Gas Aggregation Service?
Core Gas Aggregation Service is an optional service that allows core customers to purchase gas directly from competitive suppliers, rather than from PG&E. Core customers are defined as all residential and small commercial customers. Under this gas rate option, customers purchase their gas commodity from a competitive supplier, known as a Core Transport Agent (CTA) and continue to use PG&E for gas transportation. PG&E still owns and maintains the lines that deliver the gas to your home or business under this service.
Frequently Asked Questions
- Why is PG&E offering this service?
- Who is eligible to participate in the program?
- How does the service work?
- How will customers know who the suppliers are?
- Will PG&E lose money if I switch suppliers?
- What are my supplier’s responsibilities?
- If I choose a different supplier, will the gas be different?
- Are there any extra charges or Franchise Fee surcharge?
Why is PG&E offering this service?
PG&E believes that all customers benefit from additional choices in the marketplace. Providing choices creates competition among energy suppliers and increases value for customers. Suppliers can often provide customers with price protection, alternative billing methods and cost savings.
Regardless of what choices you make, your other gas services will be unchanged. PG&E remains committed to the safe and reliable delivery of natural gas to your home or business, and remains your first point of contact for safety issues regarding gas service.
Who is eligible to participate in the program?
Residential and small commercial customers currently being billed for gas on any core gas rate schedule.
How does the service work?
To participate, you must be part of a group that together uses a total of at least 120,000 therms of gas per year. The group can be made up of any combination of core customers from within PG&E’s natural gas service territory and need not be linked by corporation or geography. #1
The customers are linked by their designation of a common supplier who manages the gas supply and delivery for all customers within the group. Each customer within the group is required to make a minimum one-year commitment to core gas aggregation service and to purchase natural gas from the supplier, instead of PG&E.
How will customers know who the suppliers are?
Suppliers may contact customers with information about buying natural gas from them. The suppliers may use advertising, direct mail, personal contact or other means to promote their services.
Will PG&E lose money if I switch suppliers?
PG&E does not make a profit on the sale of natural gas to its retail customers due to the way natural gas utilities are regulated. PG&E makes its profit from delivering gas through its system as well as from other sources, but not from the sale of gas itself.
What are my supplier’s responsibilities?
Your supplier is responsible for ensuring that gas is delivered daily to PG&E’s transportation system, balancing gas supply with gas use and meeting the gas reliability needs of its customers. PG&E is authorized by the California Public Utilities Commission to assess penalties and collect costs from a supplier if that supplier fails to provide for the gas needs of its customers. As part of PG&E’s service, PG&E will serve as a back-up supplier in the event your supplier fails to arrange for an adequate supply of natural gas.
If I choose a different supplier, will the gas be different?
No. The quality of the natural gas provided to you is the same high quality gas you would otherwise receive.
Are there any extra charges or Franchise Fee surcharge?
There are no “extra” charges paid by a customer that purchases natural gas from a third party supplier – that is, a gas ESP. Under PG&E’s current bill format, the bill is calculated “as if” the customer was bundled. Then the PG&E procurement portion of the bill is backed up as a negative amount called the “Procurement Credit”.
A “Franchise Fee Surcharge” is added to the PG&E portion of the bill. This is NOT an extra charge for unbundled customers — instead this line item replaces the franchise fees that are built into the PG&E procurement charge, and thus backed out in the Procurement Credit line item. This surcharge is collected under rate schedule G-SUR to pay franchise fees (roughly 1%) on the value of the fuel supply being provided by the gas ESP.
Source: PG&E
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