Gas Supply Rates
Current gas supply rates for all regulated gas companies are posted on the Cost of Gas Adjustment Factor page. We do not post, regulate, or review the prices offered by competitive gas suppliers or retail agents.
Supply Options for Massachusetts Gas Customers
If you are a gas customer in Massachusetts, you have the option of choosing a natural gas supplier other than your gas company.
Your monthly bill is broken into two main parts:
- Supply (or GAF) Charge: This charge recovers the costs associated with purchasing and transporting natural gas to Massachusetts. Your gas company pays to purchase natural gas on your behalf at the current market price and passes the cost onto customers through a rate approved by the Department of Public Utilities (DPU). This is known as the cost of gas adjustment factor or GAF rate. Because this charge is dependent on the wholesale natural gas market and the time of year, it can fluctuate from season to season.
- Delivery (or Distribution) Charges: These charges recover the cost of delivering natural gas through the gas company’s distribution system to your home or business. One of the charges, the local distribution adjustment factor (or LDAF), is a rate that recovers the costs associated with energy efficiency programs, environmental response, Attorney General consultants, residential assistance, and the gas system enhancement replacement program.
The DPU posts the approved GAF rates for all gas companies on its Cost of Gas Adjustment Factor website. Your gas company’s GAF rate will be adjusted on May 1st and November 1st of each year, with the possibility of additional DPU-approved revisions.
Regardless of who your gas supplier is, your gas company will continue to deliver natural gas to your home or business, respond to emergency calls, read your meter, fix the pipes delivering gas, and provide customer service.
Before switching over to the competitive market, you should consider asking the following questions to the potential supplier/retail agent:
- What is the contract length?
- Is the rate fixed or variable?
- Are there any early termination or cancellation fees?
- Who do I contact if I have questions?
Choose between a Gas Supplier and Retail Agent
If you are a gas customer looking to enter the competitive market, you have the option to switch to either a gas supplier1 or a retail agent2.
The DPU does not post, regulate, or review the prices offered by gas suppliers or retail agents. Further, not all gas suppliers provide gas supply to all types of customers in all parts of Massachusetts. In order to find out if a supplier serves you and at what supply rate, you must contact the supplier.
The DPU does post the list of licensed gas suppliers and retail agents that you should contact for pricing information. If there is an “R” in the RCI column on the same line as the Company’s name, then the gas supplier or retail agent is licensed to serve residential customers. Gas suppliers and retail agents must apply to the DPU for a license and renew the license annually.
Looking to become a Supplier or Retail Agent?
If you want to become a gas supplier or retail agent in Massachusetts, you must first apply for a license from the DPU. If you are a currently licensed by the DPU, you must renew your license every year prior to the expiration date.