Developing a Competitive Supply Market

The natural gas industry has undergone dramatic change over the past few decades. Within New York, retail competition began in the 1980s when large customers were given the option to buy gas from a provider other than their local utility.

In the late 1990s, believing that competition for customers would drive down natural gas prices, state regulators decided to extend this option to residential customers. As a result of this restructuring, O&R still delivers the gas as always and bills customers a delivery charge, separate from any supply charges.

Customers, however, who choose not to buy gas from an alternate marketer, may still buy their supply through O&R, paying O&R what the gas costs — without any additional markup. Called the Gas Supply Charge in New York, this cost varies from month to month.

About one third of O&R's natural gas customers take advantage of Energy Choice and now buy the commodity from a supplier other than us.