CUB Gas Market Monitor
An Analysis of Natural Gas Offers
“Will I save money by switching to an alternative gas supplier?”
It's likely that you will NOT save, as the statistics from CUB's Gas Market Monitor show here.
Summary of plans
LostSaved
91%9%


Average $376.32 Loss
As of June 25, 2008
Read below for more detailed information.


For years, Northern Illinois consumers have been able to switch from their utility to an unregulated gas supplier. Even those who switch may have trouble determining whether they’ve saved money.

It all depends on which company you choose and when you sign up. If you happen to lock in a fixed rate just before prices skyrocket, you might save money. You may not be so lucky if prices plummet after you lock in. Sadly, you need a crystal ball to determine whether any of these plans are winners.

CUB’s Gas Market Monitor—the only study of its kind in Illinois—gives a "Monday morning quarterback"
Consumer Tips
look at whether consumers who have switched are saving money. It provides a monthly snapshot of how consumers have fared with hundreds of plans that have been marketed since 2003.

This is no crystal ball, but it is the most comprehensive gas-price analysis available and we hope it will help you make an informed choice. The charts below show how plans offered by various companies over the years have fared. After exploring the Gas Market Monitor, get more information on our Natural Gas page, in the section called "Has the 'gas company' tried to sell you a new 'deal'?" It includes fact sheets, updated weekly, on the offers being marketed by unregulated gas companies.
SummaryLostSavedAverage
All Plans91%9%($376.32)
By Alternate Gas Supplier   
Cornbelt33%67%($22.98)
Direct Energy Services100%0%($845.54)
Dominion Retail69%31%($372.11)
IGS Energy92%8%($153.00)
Illinois Natural Gas Corp45%55%$50.82
Integrys Energy Services89%11%($319.71)
MX Energy97%3%($502.69)
Nordic Energy Services98%2%($373.45)
Santanna Energy Services98%2%($227.63)
Spark Energy100%0%($9.42)
U.S. Energy Savings Corp92%8%($690.81)
WPS Energy100%0%($448.79)
(Updated: June 25, 2008)
Methodology
This analysis includes hundreds of active plans as well as expired ones (the plan's term has ended and customers are no longer on it). For example, if you signed up in December 2005 for a one-year plan, the analysis of that plan’s results would be in the expired category, because the term would have ended in December 2006. If, at that time, you had signed up for a five-year plan, the analysis would be included in the active section and would reflect savings and losses to date.

Month


January
February
March
April
May
June
July
August
September
October
November
December
 		Average
Therms
250
250
150
100
25
25
25
25
25
100
150
200
Three types of plans have been offered. The most common is a fixed rate, where customers pay a set per-therm price for a period of one to five years. A variable rate plan is based on a formula that tracks the monthly change in gas prices. Often it is tied to a market index. Like Nicor and Peoples Energy rates, these rates vary from month to month.

A mixed plan offers a combination of fixed and variable rates at different times of the year. These plans are not included in the current analysis because they are rare and aren't currently offered to new customers.

In addition to the per-therm rate, many plans include additional fees, such as a “balancing charge” and a monthly service fee. Where applicable, the analysis includes those fees. Taxes and other government-mandated surcharges are not included.

CUB estimates a typical yearly usage of 1,325 therms and allocates those therms for each month based on gas-usage data from the Illinois Commerce Commission (ICC). Actual results will vary based on individual usage. The analysis is based on data obtained from suppliers each week.

The plans you see here were offered at least through the end of the previous month, but may have changed or been discontinued by the time you read this. CUB's Gas Market Monitor is the most comprehensive analysis of Illinois' natural gas market available, covering more than 3,000 plans that are or have been offered since 2003. Every attempt has been made to verify all the information gathered with the companies listed, and CUB has strived to be conservative and prudent in its methodology. If there is a gap in information, CUB has made every attempt to point that out and compensate for it in its methodology. If you have any questions, please contact CUB, at 1-800-669-5556.
Past savings are no guarantee

Past savings obtained by these plans are no guarantee of future savings. It’s a roll of the dice, much like the stock market, except you are betting on the movement of natural gas prices. Industry and consumer experts can analyze past trends, but no one knows what the price of gas will be next week, let alone next year or five years from now.

Beware of misleading marketing

Don’t trust anyone who promises savings on your gas bill because they would need a crystal ball to do it. Remember, if it sounds too good to be true, it probably is.

Also, beware of salespeople claiming to be from the gas company and never give out your account number to them. Always ask to see any offer in writing and take at least 48 hours to review and research it.

Read the fine print

Watch for hidden fees that boost the advertised per-therm rate, and early-termination charges that could penalize you by hundreds of dollars if you drop out of the offer before the contract is up.

Remember, a fixed rate is not always fixed. Some contract loopholes allow companies to cancel the agreement if prices rise and the terms no longer benefit them. You are signing a legal contract, so read it carefully.

You don’t have to switch

If you’re concerned about rising natural gas prices, your regulated utility’s “budget-billing plan” may be your best bet. Only switch gas suppliers if you fully understand all the terms and potential risks.

Many people switch suppliers thinking it’s a way to save money and that’s not always the case.

If it sounds too good to be true…

  …it probably is!

Santanna Energy Services has defaulted on its contracts twice because consumers were saving too much money. The company unilaterally ended the contracts and put consumers on a higher market rate.

A class action lawsuit against Santanna is pending.

CUB endorses no company

The Gas Market Monitor is for informational purposes only.

CUB does not endorse any particular plan or provider.

Confused? Call CUB

CUB can help you weigh all the pros and cons of switching to a new supplier. First check out our publications on the two gas choice programs: Customer Select (for Nicor customers) and Choices for You (for Peoples customers). If you still have questions, please call CUB’s Consumer Hotline,
at 1-800-669-5556.