CLEVELAND, Ohio — It’s finally cold enough to turn the furnace on in Northeast Ohio. That means now is the time to shop for a better deal on natural gas.
Ohioans have some control over their heating and power bills, and they can shop for and pick their own suppliers for both electricity and natural gas. Most of us in Northeast Ohio have gas-powered furnaces and use more natural gas during the winter.
But because of how Ohio’s bills are set up, the option from the utility (also called the standard choice offer) is likely your best option this winter.
Many people are not getting this price, though. So it’s important to take a look at your bill to see if you’re paying too much.
Here’s where to find the cheapest natural gas rate:
We can delve into how to shop for a supplier, and how utility bills work, later in the column. But for readers who already know how to pick their own supplier, we’ll jump straight into the options.
You essentially have three options: the standard choice offer, a supplier on energychoice.ohio.gov or one of many options from NOPEC.
The Standard Choice Offer
If you don’t pick your own natural gas supplier, and if you aren’t automatically opted-in to a community aggregation like NOPEC, you get placed into an option called the standard choice offer.
This price changes monthly and is tied directly to commodity prices. This is a vast oversimplification, but the price you pay is essentially the wholesale price of natural gas plus a markup determined at auction.
Right now, and historically, it is the cheapest option. Although it did spike after Russia’s invasion of Ukraine.
Commodity prices can spike or drop. However, there’s good reason to believe that the standard choice offer will stay cheap this winter.
The standard choice offer for Dominion Energy customers is $3.15 per MCF through Nov. 8. For Columbia Gas customers, it’s 46 cents per CCF. Yes, these two utility companies use different units of measurement. But there’s 10 CCFs in one MCF.
Residential natural gas prices should be about 21% cheaper this winter than last winter, according to a forecast by the U.S. Energy Information Administration. Even if this winter is 10% colder than expected, prices should still be down 15%.
The standard choice offer is much lower now than it was this time last year. Last October, Dominion Energy customers paid $7.05 per MCF, and Columbia Gas customers paid 85 cents per CCF.
Here’s the kicker: Despite the standard choice offer being the cheapest option, about 75% of Dominion Energy customers and 45% of Columbia Gas customers aren’t using it, according to the most recent statistics from the Ohio Public Utilities Commission of Ohio.
You can see if you’re on the standard choice offer by checking your monthly bill.
Some of these customers may have cheaper fixed-rate contracts. But many others may be paying more for NOPEC or a contract that’s more expensive. If I were them, I’d opt out.
You can switch to the standard choice offer by calling your distribution utility, which is likely either Dominion Energy or Columbia Gas. If you’re on a contract with a supplier, you may have to pay an early-termination fee. NOPEC does not charge a fee.
If you want safety, you might be better off signing up for a fixed-rate contract. But for cheap, I think the standard choice offer is best.
Last year I tried a fixed-rate option and locked myself into a worse deal, since prices dropped. But all advice is autobiographical, so you may have better luck.
Shopping for a supplier at energychoice.ohio.gov
Customers can visit energychoice.ohio.gov and shop for themselves using Ohio’s Apples to Apples tool. Providers are required to share information on the website about rates and deals. It also lists the standard service offer for your area.
At the moment none of the offers are great.
The best offer available for Dominion Energy customers is a 12-month contract at $3.99 per MCF from AEP Energy. For Columbia Gas customers, AEP Energy has a 12-month contract at 52 cents per CCF.
In both cases, you’re costing yourself money compared to the standard choice offer.
“Best” is subjective, but here’s my criteria. I generally look for fixed-rate contracts that have no added monthly fees, no early termination fees and no promotions or “introductory offers.” Sometimes you’ll see a very cheap price that only lasts for one to three months, sort of like a TV subscription.
I don’t look for variable rates because if I wanted a rate that changed, I’d use the standard choice offer.
What is NOPEC currently charging?
The Northeast Ohio Public Energy Council, better known as NOPEC, is the community aggregation for a whole swath of Greater Cleveland. They sent opt-out letters in April, and people who didn’t respond get…
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