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| 1. | Can I choose my natural gas supplier? |
| 2. | Does this gas supply choice apply to residential as well as business customers? |
| 3. | What does this mean to you? |
| 4. | What is a Gas Service Provider (GSP)? |
| 5. | Can a GSP match or beat the Gas Utility price? |
| 6. | Will a GSP be as reliable as the Utility? |
| 7. | Who do I call in case of an emergency? |
| 8. | How do I switch gas suppliers? |
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| 1. | Can I choose my natural gas supplier? |
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Yes! As a result of the Gas Industry Restructuring, all California customers now have a choice of natural gas supply. California's natural gas industry was deregulated in 1997. The new market structure allows you to choose the services you need and pay for only what you use. Now all California customers can either purchase natural gas from the supplier or marketer of your choice. American Gas Management is one of those choices. California is at the forefront of utility restructuring that will have a dramatic effect of natural gas and electric prices. The deregulation of supply of both electricity and natural gas means energy prices are set at market rates for all California consumers. The road to Gas Industry Restructuring has not reached its end. We anticipate continued changes to occur in order for the CPUC to reach its ultimate goal of providing all gas customers with a greater competitive gas marketplace. American Gas Management will provide you the guidance and leadership to make the most effective decision in this changing market. Call us toll-free at 1-800-500-9155 for the latest information regarding your natural gas supply options. |
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| 2. | Does this gas supply choice apply to residential as well as business customers? |
| Yes! The natural gas market has been separated into core and non-core customer segments depending on the customer's load, end-use priority and economic ability to use alternative fuels.
The current definitions of the two gas customer segments are: CORE: Core customers include all residential, regardless of load size, and commercial customers with annual levels below 250,000 therms. NON-CORE: Non-Core customers include all cogeneration, regardless of load size, and those commercial customers with annual loads above 250,000 therms. |
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| 3. | What does this mean to you? |
| All non-core customers have the ability to select natural gas service from a Gas Service Provider (GSP) instead of the utility. The utility still provides these customers with the transportation of the gas across its distribution system to the customer's meter.
Core customers can take advantage of purchasing gas from a GSP through the core aggregation program provided by all California utilities. Customers must be part of a group that uses a minimum of 120,000 therms of gas per year. The individual core aggregation group must make a minimum one-year-commitment to purchase their gas supply as part of the group. |
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| 4. | What is a Gas Service Provider (GSP)? |
| American Gas Management is an independent Gas Service Provider. The GSP has the full responsibility of managing the gas supply and its daily delivery into the utilities transportation/distribution system for all its customers. American Gas Management is a fully approved GSP for all California utilities, SDG&E, So Cal Gas and PG&E.return to top |
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| 5. | Can a GSP match or beat the Gas Utility price? |
| Usually, yes. GSPs can offer a number of pricing plans base on the needs of the customer and in most instances this is lower than provided by the utility.
The utility's price for gas changes each month to match the market price than the utility pays for the gas. The utility does not make a profit on the sale of natural gas to its customers. The utility makes its profit from delivering gas through its system as well as from other sources, but not from the sale of natural gas. The utility by law must charge the customer the monthly cost of natural gas. GSPs purchase natural gas form a number of different services and through a variety of contractual arrangements, all of which are priced differently than the utility's gas price. GSPs can offer a guaranteed fixed price over a period of time, whereas, the utility must charge the monthly price which matches that months cost of gas. |
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| 6. | Will a GSP be as reliable as the Utility? |
| Yes. The natural gas is transported to your meter through the utilities' transportation and distribution system. You will still receive a bill from your utility to provide the transportation of natural gas to your Meter. The quality of the natural gas provided to you is the same high quality gas you would otherwise receive.return to top |
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| 7. | Who do I call in case of an emergency? |
| You should continue to call the utility for your service and energy needs. The utility will continue to respond to your safety calls, read your meter, offer appliance services and maintain the gas delivery system leading to you meter location. Remember the utility is still being compensated for using their transportation/delivery system. The GSP is providing them the natural gas for delivery to your location.return to top |
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| 8. | How do I switch gas suppliers? |
| Contact American Gas Management, Inc. immediately at 1-800-500-9155 or sales@americangm.com to learn how you can start taking advantage of gas industry restructuring and improving your profitability.return to top |
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American Gas Management
140 Marine View Avenue, Suite 220
Solana Beach, CA 92075
1-800-500-9155 • fax: 1-800-459-5007
858-847-0801 • fax: 858-847-0803
info@americangm.com
sales@americangm.com
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