Retail Unbundling - Nebraska
|Status: The State has one unbundling program for residential gas customers.|
Overview: Almost all of the residential and commercial customers in Source Gas LLC's (SourceGas, formerly Kinder Morgan, Inc.) Nebraska service areas are participating in the State's only customer choice program. Kinder Morgan, which sold its natural gas utility assets in 2007 to SourceGas, initiated its Nebraska Choice Gas Program in April 1998 as a proactive step to unbundling natural gas services in the State. In the 11th year of the program, residential and small commercial customers in virtually all of the 180 Nebraska communities served by the company were eligible to choose among three suppliers for their natural gas, one of which is the company's gas marketing division, SourceGas Energy Services. The other participating suppliers are ONEOK Energy Marketing Company and Public Alliance for Community Energy (known as ACE), a municipally owned, not-for-profit organization. Customers were required to make their natural gas supplier selection by May 1, 2008, for service from June 1, 2008, through May 31, 2009. Most customers in the program (56 percent) chose to purchase gas from SourceGas Energy Services.
Until passage of the State Natural Gas Regulation Act in May 2003, Nebraska had a somewhat unique situation in which individual communities and municipalities, rather than a statewide regulatory body, regulated retail natural gas service. Since January 2004, the Nebraska Public Service Commission has the responsibility for overseeing the rates charged for natural gas service and the terms and conditions of service. The commission opened a docket in June 2005 to investigate and adopt policies for administration of Kinder Morgan's consumer choice program and any other choice programs that might be offered by jurisdictional utilities for natural gas service in the State. In 2006, new rules were drafted regarding meter errors, consumer choice programs, aggregators and suppliers, and emergency curtailment plans. The commission adopted the third set of proposed rules on October 7, 2008. The rules clarified the commission's role regarding service area changes, clarified supplier and aggregator certification procedures, and specified procedures related to billing adjustments for slow or fast meters and other meter errors.
|EIA State Data: In 2007, Nebraska had 494,005 residential and 55,761 commercial customers. They consumed approximately 36 and 30 billion cubic feet of natural gas, respectively. The average prices residential and commercial customers paid for natural gas from local distribution companies were $11.15 and $9.16 per thousand cubic feet, respectively.|
|Eligibility and Participation in Retail Choice Programs:|
|Eligibility and Participation by Customer Class, December 2008
Regulatory and Legislative Actions on
|Regulatory and Legislative Actions|