Understanding Natural Gas Contracts
Some natural gas suppliers offer plans with no minimum contract period, while others may offer plans with a minimum term, which may be several years. Be sure to ask competitive suppliers about the contract terms, and whether there is a penalty if you cancel before the contract period ends.
Electric Generation Supplier Contract Summary
Each electric supplier must now give customers an Electric Generation Supplier Contract Summary when they enroll in a new contract. This is an easy-to-read, one-page document which includes the following information:
| Term | Description |
|---|---|
| Electric Generation Supplier Information | Name, telephone number, website, etc. Plain language statement that the supplier is responsible for generation charges. |
| Price Structure | Fixed or variable. If variable, based on what? If variable, how often is the rate expected to vary? If variable, give any applicable ranges/ceilings. If no ranges/ceilings, a plain language statement indicating this fact. If variable, describe when the customer will receive notification of price changes in relation to time of month, final monthly meter read, billing cycle or when the price takes effect. |
| Generation/Supply Price | $/kWh or ¢/kWh. If variable rate, the first billing cycle’s rate. Any introductory rate with length of term. |
| Generation Price at Various Usage Levels |
Price per kWh for usages at:
**This row is required only if the price varies by usage and/or there are fees in addition to the per kWh price. See 52 Pa. Code §§ 54.5(c)(4) and 54.7. |
| Statement Regarding Services | Plain language that the supply price may not always provide savings to the customer. |
| Deposit Requirements | Any deposit requirements necessary for a customer and any terms associated with that deposit, in plain language. |
| Incentives |
Any bonuses, discounts, cashback, etc., offers and any associated terms, in plain language. **This row is required only if the supplier is offering any special incentives. |
| Contract Start Date | Plain language regarding start of EGS service (meter reads/billing cycles/etc.). |
| Contract Duration/Length | In months, billing cycles, etc. |
| Cancellation/Early Termination Fees | Yes or no. If yes, describe the amount of the fee and how to avoid that fee, if possible. |
| End of Contract | Treatment of customer at end of contract. Timing of notices. |
| Right of Rescission | An explanation of the customer’s 3-day right of rescission per 52 Pa. Code § 54.5(d) and how to exercise this right. |
Gas Supplier Renewal and Options Notices
Prior to your contract expiring, you should receive two contract renewal notices from your current supplier. Suppliers should send out an initial renewal notice 60 to 75 days prior to your contract’s expiration date.
Additionally, 45 days prior to your contract’s expiration date, the supplier should provide you with an options notice, which includes:
- The specific changes to the terms of service being proposed
- Information on new prices
- An explanation of the customer’s options and how to exercise those options
- The date by which the customer must exercise one of the options
- The telephone numbers and website addresses for the Commission and the Office of Consumer Advocate (OCA)
Make sure you read these notices, as they will assist you in making the decision to stay with your current supplier or shop for another supplier.
If you have a dual gas/electric contract with a supplier, you will receive an initial notice at least 60 days prior to your contract’s expiration, and the dual gas/electric options notice at least 45 days prior to your contract's expiration date.
