Pricing Options
Selecting a price option is a personal choice. Customers should base their decision on how much risk they are comfortable with. ACE’s pricing options are as follows:
Fixed Rate –
A 12-month fixed gas price per therm that is fixed or “locked-in.” Even if the market prices change, your gas per therm stays the same for the entire Choice Gas Program year (June 1-May 31). Your gas bill will vary based upon gas usage only.
ACE MarketShield® - Average Fixed Rate –
The same as a fixed rate per therm only the price is based on an average of fixed rated per therm prices during the selection period and market conditions 14 days after the selection period ends. The rate is made available to customers 15 days after the selection period ends.
Market Index Rate –
A month-to-month gas rate per therm that changes each month based upon natural gas commodity market fluctuations. The rate includes two components: 1) the market index price which will change every month and 2) the Adder. The Adder covers interstate transportation tariffs and costs and remains the same for the entire year.
Blended Rate –
A combination of fixed rate per therm and market index rate. ACE uses an 65 percent fixed and 35 percent market blend. This means 65 percent of your gas usage is at a fixed rate and the other 35 percent will be the fluctuating monthly market rate.
Rollover Rate –
Customers who do not submit a selection “default” or rollover to their current supplier and pricing option. The fixed rollover rate is typically set by your supplier after the selection period ends. Please note: the rollover fixed price may be affected by market prices after the end of the selection period, therefore, the rollover fixed price may be different than prices quoted to you during the selection period. Likewise, the market rollover rate may reflect market activity in May rather than during the April selection period.