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The permanent program replaces a three year experimental program which allowed all non-residential and up to 21,000 residential customers to participate in 2002. The choice program gives all customers the option to obtain natural gas from a supplier of their choice. This means that you, as a residential or business customer will now be able to choose a new gas supplier. SEMCO will still continue to provide gas distribution service by delivering your gas to your home or business. Beginning October 1, 2002, all nonresidential and up to 78,000 residential SEMCO natural gas customers are eligible to participate in the program on a first-come, first-served basis. Effective April 1, 2003, up to 117,000 residential customers are eligible and all gas customers may participate on April 1, 2004. Participation in the program is strictly voluntary. If you do not wish to switch to a new supplier, your gas service will continue to be provided by SEMCO and the price of your gas supply will be regulated by the Public Service Commission. If you wish to switch to a new supplier, the price you pay for your gas supply will be the price the supplier offers. If you choose to participate in the customer choice program you may return to the utility at any time. If you switch back to buying gas from SEMCO after participating in the customer choice program, you are required to remain a SEMCO sales customer for 12 months before you can choose a new supplier. |
| Frequently Asked Questions About SEMCO Energy Gas Customer Choice Program |
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Who is eligible to participate in the program? | ||
| All residential and business customers are eligible except those who are already transportation customers. | |||
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If I am on Budget Billing, can I participate? | ||
| Yes. | |||
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What if I do not wish to switch to a new supplier? | ||
| That is your choice. If you choose to remain a sales customer of SEMCO, you will continue to pay a regulated GCR rate for your gas supply. See current rates. | |||
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How do I sign up with a new supplier? | ||
| You can sign up over the telephone, via the Internet or in person, depending on what sign up options the suppliers are offering. You will need to give the supplier your name, address and SEMCO account number. This number is on your bill. Your new supplier will then send the information to SEMCO. To avoid unauthorized switching, do not disclose specific account information if you do not want to be switched to a new supplier. | |||
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Is there a sign up period? | ||
| No. Beginning October 1, 2002, you can sign up anytime during the year until 117,000 residential customers have enrolled. If enrollment is full, the next sign-up period will begin April 1, 2003. All customers will be able to choose another supplier beginning April 1, 2004. | |||
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How can I find out which suppliers are participating in the program? | ||
| See Supplier/Marketer Contacts page for a list of suppliers that are licensed with the MPSC. | |||
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How long will it take to switch to a new supplier? | ||
| About two to six weeks depending on when your gas utility reads your meter. | |||
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Can I switch from one supplier to another? | ||
| Yes, you can switch to another supplier at any time. However, be sure to ask your current and potential suppliers if there is a cancellation fee or a minimum term to be eligible for the savings or rebate. You can switch back to SEMCO sales service after 12 months, but you must remain with SEMCO for the following 12 months. | |||
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How do I cancel my contract? | ||
| You must contact the supplier to cancel your contract. The Michigan Public Service Commission does not regulate the supplier and therefore cannot cancel or change contracts. | |||
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Do I have to pay a fee if I switch suppliers? | ||
| There is no fee for your original enrollment and you are also allowed to switch once each year without a fee. There is a $10 fee for each additional switch. | |||
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Does the Michigan Public Service Commission regulate the rates of the suppliers participating in the program? | ||
| No. It is up to you to determine if a supplier meets your needs. Be sure you understand the terms of the contract and the price you will pay, including any additional administrative fees the supplier may charge. If you have questions or problems concerning your gas supply, you must contact the supplier. | |||
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Who will deliver the gas to my home? | ||
| SEMCO will continue to deliver gas to your home. You will not need a new service line or meter if you choose a new supplier. Your delivery (distribution) cost and monthly customer charge will be the same as a SEMCO sales customer. SEMCO also charges a $0.025 per Ccf balancing charge and a $0.04568 per Ccf Capacity Demand Charge to all customers. Customers of alternative suppliers will see these as separate charges on their bills. Customers who do not switch will continue to have the charges included in the GCR factor on their bills. The charges cover the costs associated with gas storage, moving gas out of storage, and transportation into the distribution system. | |||
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If I choose an alternative supplier to purchase gas on my behalf, do I pay my utility any charges? | ||
| Yes, you would pay the utility delivery charges that you have always paid. These charges consist of the Monthly Customer Charge and the Distribution Charge. The amount you agree to pay your alternative supplier for the gas they purchased for you will be billed and collected by SEMCO and SEMCO will pay your alternative supplier. | |||
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Will I continue to pay sales tax on my entire bill if I switch suppliers? | ||
| Yes. If you are a residential customer, your bill will include a 4% sales tax rate on the total bill. If you are a business customer, the rate is 6%. | |||
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Who do I call if I smell gas? | ||
| If you smell gas or have a service emergency you will still call SEMCO for help. | |||
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Who do I call if I have a billing dispute? | ||
| SEMCO will continue to read your meter and send you a bill for their delivery service and the gas you purchased from your supplier. Call your energy supplier if you have any questions concerning your gas charges. If you have questions concerning your customer charge or distribution charges, you will still call SEMCO Energy Gas. | |||
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What can I do if I can't get my problem resolved through SEMCO or the supplier? | ||
| If you have not received a satisfactory response from your gas utility or your new supplier, inquire or complain to the staff of the Michigan Public Service Commission (at www.Michigan.gov/mpsc under Consumer Information). | |||
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