Many South Dakota customers have the opportunity to choose their natural gas provider, and save money on their gas rate. Customers choosing an alternate gas supplier will still have their gas supply delivered by the local utility, but customers will be buying their gas supply from a new company. All customers at MidAmerican Energy Company and NorthWestern Energy Corporation can choose their gas provider. At Montana-Dakota Utilities Company, customers must use at least 2.5 million Btu per hour to choose an alternative supplier, limiting choice to large customers.
A customer's natural gas bill has been separated into two parts:
- Regulated distribution of gas, which is still only provided by the utility, and
- Supply of the gas commodity, which is open to competition.
Customers can choose to receive their gas supply from their utility, or an alternate gas provider.
If customers do not shop for an alternate gas supplier, they receive default sales service from their utility. Under default sales service, customers pay a "Gas Cost Component" which can vary as often as monthly. Customers can avoid wild monthly swings in the gas supply charge by contracting with an alternative gas supplier.
No matter who you choose to buy energy from, your local utility will continue to deliver your gas and respond to service interruptions and outages. You will still pay your utility for these services. Depending on your area, you can choose to receive a single bill from your utility listing your utility delivery charges and supplier commodity charges, or separate bills from the utility and alternate energy provider.