Considering Switching to Natural Gas? - Natural Gas Service Territories - Gas Supply Pricing by Company
The Public Advocate and Staff have been active for many years in proceedings concerning the availability, pricing and transmission of natural gas in Maine. These activities include both proceedings pertaining to pipeline natural gas pricing at the Federal Energy Regulatory Commission (Portland Natural Gas Transmission System, Maritimes and Northeast Pipeline LLC, Granite State Gas Transmission) and retail gas proceedings before the Maine PUC (Northern Utilities/Unitil, Summit Natural Gas, Maine Natural Gas, Bangor Gas).
Considering Switching to Natural Gas?
Here are some questions to ask before making your decision:
- How does natural gas compare to my current fuel costs?
Compare types of fuel at https://www.maine.gov/energy/heating-fuel-prices - What are my direct costs?
a. Conversion of heating system and appliances? Converting an existing system to gas starts at around $2,000. Upgrading to a new system can cost between $8,000-$10,000.
b. Cost to extend service main into neighborhood?
c. Installation costs to run a service line from the main to the house?
d. Hook-up costs to connect the house to the service line? - What are my responsibilities in coordinating the process?
- What is the timeline for installation?
- What contractors can do the work in the area?
Natural Gas Service Territories
Gas Supply Pricing by Company
Maine’s natural gas utilities purchase gas supply on behalf of all residential and many business customers. Unlike the cost of delivering gas, which is regulated and priced at rates set by the PUC, these gas supply prices are based on the market prices of natural gas. The gas utility passes the cost of gas supply through to consumers, and the PUC ensures that they do not earn a profit (or incur a loss) on these purchases. Gas purchases are based on estimated usage for the coming season. Utilities employ a true-up mechanism that ensures there is no over- or under-collecting if the market conditions change over the course of the contract. The true-up mechanism applies any over or under-collection to your rates in the next season. Each Maine gas utility’s mechanism is different, as described below.
| Bangor Gas | Cost of Gas Rate | Monthly cost of gas rate |
| Rate Period | Monthly | |
| Cost of gas rate adjusted each month based on the estimated over-recovery or under-recovery balance at the end if the previous month, subject to a cap. | ||
| Maine Natural Gas | Cost of Gas Rates | Monthly (Index Price Option) |
| Rate Period | Monthly | |
| Cost of gas rate adjusted each month based on the estimated over-recovery or under-recovery balance at the end if the previous month, subject to a cap. | ||
| Summit Natural Gas | Cost of Gas Rate | Annual cost of gas rate, with mid-period adjustment, if needed. |
| Rate Period | October - September | |
| True-up | Annual adjustment based on the over-recovery or under-recovery balance at the end of June. | |
| Unitil/Northern | Cost of Gas Rates | Separate peak and off-peak rates |
| Rate Periods | Peak Period: November - April Off-Peak Period: May - October |
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| True-up | Over-recovery or under-recovery during peak/off-peak period is an adjustment to the cost of gas rate for the next peak/off-peak period. |