Frequently Asked Questions - Oklahoma



Q: Does ONG support customers buying cheaper natural gas?

A: February 12, 2003 -- ONG President Sam Combs told the Oklahoma Corporation Commission "Our business is gas delivery, not gas sales." ONG is not allowed by tariff regulations to profit from natural gas sales. It makes economic sense for ONG to deflect some gas expenses to more efficient 3rd party gas supply. Large-volume natural gas customers have long profited from the ability to buy gas from non-utility suppliers and pay ONG a transportations-only rate to the point of consumption. Since 2003, ONG has encouraged qualified smaller-volume natural gas customers to take advantage of the available savings by buying from non-utility gas suppliers. ONG promotes 3rd party supply of natural gas to help customers save money


Q: What is the Choice Program?

A: The Choice Program allows qualified customers to purchase gas directly from a lower cost provider and elect to have ONG transport gas to them. OKES, on your behalf, will manage the transportation service and sell gas directly to you. You will continue to get a bill from ONG for the transportation from the city-gate to the burner-tip.


Q: How do I know if I qualify?

A: In 1984, ONG, with the approval of the Oklahoma Corporation Commission, began to allow NON-Residential customers to purchase gas directly from third party providers. At the request of ONG, over the years the minimum annual quantity required to participate has been reduced to 900 dekatherms (Dth) per year. If your annual gas consumption is greater than 900 Dth, you qualify.


Q: What will ONG think about me switching sources of supply?

A: ONG is in the business of delivery of gas, not gas sales. ONG not only allows customers to participate, they encourage it.


Q: If I switch from ONG, will I ever be able to go back?

A: It is possible to return to ONG after a year. However, once you begin saving on your utility bills, you won’t want to go back!


Q: How do I establish the transportation service?

A: Transportation service with ONG is regulated by the Oklahoma Corporation Commission, and is initiated by completing ONG’s Agency Letter. OKES will act as your agent.


Q: If my company chooses to purchase gas from OKES, what certainty do I have that gas deliveries will not be interrupted?

A: If for some unforeseen reason, OKES was unable to deliver gas to ONG, you would still receive gas from ONG’s system gas. In the event of a pipeline catastrophe, ONG, as transporter, has a pre-determined priority for delivery to customers. However, at no time in the past has ONG failed to deliver gas to any customer.


Q: How can OKES’s price be lower than what ONG charges?

A: In addition to the cost of gas, ONG’s bill includes charges for things such as reservation fees, capacity fees, and storage costs. This increases ONG’s total costs while OKES is able to purchase gas supplies at current market prices.


Q: How will OKES deliver gas to my facility?

A: The physical delivery of gas will not change, with the exception that a new piece of equipment may be installed by ONG for participation. This equipment is called an EFM or electronic flow measurement device which allows OKES to see how much gas you are using on a daily basis. With this equipment we are able to make sure that we deliver as much as you need.


Q: What will it cost to participate in the Choice Program?

A: ONG will charge the customer for transportation services and charge the customer for the cost of installing the new EFM device. OKES will charge the customer for the gas supplied including OKES’s marketing fee.


Q: Will ONG confirm there will be savings through purchasing natural gas from a third party?

A: From: ONG 

To: A new customer of Oklahoma Energy Source

Hello,
Industrial and commercial customers of Oklahoma Natural Gas have the choice to enter into agreements which allow them to purchase natural gas supplies from sources other than our company. The twelve month average cost of natural gas, if purchased from Oklahoma Natural Gas, is $4.868 per Dth compared to the first of the month index price of $2.713 per Dth. 
For Information on: 

Oklahoma Natural Gas Tariffs:
http://www.oklahomanaturalgas.com/CustomerCare/RateInformationTariffs/RateScheduleList.aspx

Historical Cost of Natural Gas:
http://www.oklahomanaturalgas.com/CustomerCare/RateInformationTariffs.aspx (located under "Frequently Asked Questions”)

If your company is interested in Transportation Services, we must receive a signed agency letter agreement from the third-party natural gas supplier of your choice by the 1st business day of the month prior to the desired effective date (Examples: April 1st for May 1st effective date or May 1st for June 1st effective date). If these locations qualify we would require the purchasing of the Electronic Flow Measurement (EFM) equipment in a one-time upfront payment of $1,896/meter. 

Thanks,
Transportation Services Representative 
Oklahoma Natural Gas