Choice Gas FAQs
What is ACE?
ACE, the Public Alliance for Community Energy, is a municipally-owned, not-for-profit natural gas supplier in the Nebraska Choice Gas program.
What separates ACE from other suppliers?
ACE is the only not-for-profit, community-owned supplier in the Nebraska Choice Gas program.
What if I have a problem with my gas system?
Any issues with meters, gas delivery, system safety and billing are the responsibility of the distributor (SourceGas) and can be contacted by calling (800) 563-0012.
Which is the cheaper rate: fixed, market or blend?
ACE cannot predict the market so it’s not possible to tell customers which option will be the cheapest for the upcoming gas year. Fixed rates are based on the gas futures market. Market rates change each month according to actual market price. Blend rates are a combination of fixed and market rates.
What affects the price of natural gas?
Natural gas prices are driven by the natural gas commodities market. Some factors that drive the market are supply, demand, weather and crude oil prices.
Why does ACE use PEPL and CIG instead of NYMEX for pricing?
PEPL (Panhandle Eastern Pipeline Co.) and CIG (Colorado Interstate Gas) indices more accurately reflect the actual cash prices of natural gas to our region. NYMEX (New York Mercantile Exchange) is a publicly traded market which establishes pricing primarily for the east coast.
Where are market prices found?
The Wall Street Journal and the Internet carry NYMEX & futures prices. Monthly index rates for non-published PEPL and CIG indices are available upon request to ACE customers.
Why is one region lower/higher than another?
SourceGas distribution system is served by two different interstate pipelines. The shipping costs on these pipelines to local distribution systems vary.
Where does ACE’s natural gas come from?
ACE purchases gas from fields in Wyoming, Kansas, Oklahoma and Texas.
What is the difference between Market Rate and Blended Rate?
Market Rate - A month-to-month rate per therm that changes each month based on market price fluctuations. This rate includes two components:
1) The commodity market index (NYMEX, PEPL, CIG). This component changes each month based on the first of the month market index;
2) The adder. This component remains constant throughout the gas year and includes shipping (also known as transportation) costs and supplier costs.
The customer bears all of the risk of market fluctuation with this rate.
Blended Rate - A combination of the fixed rate and the monthly market rate. The fixed rate portion is for 65% of the customer’s usage and is locked in at a fixed price. The market rate portion is for 35% of the customer’s usage and will follow market changes. The customer shares the risk of market fluctuation with the supplier with this rate.