Understanding Your Ohio Natural Gas Bill

Ohio deregulated natural gas in 1996. Here's what that actually means for your wallet.

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Section 1

Ohio Deregulation 101

In 1996, Ohio opened its natural gas market to competition, allowing residents to choose their gas supplier. (Electric deregulation followed in 2001.) This means you have the legal right to shop for a better price on the gas commodity itself.

Here's the key distinction: you choose your gas supplier, but your utility still delivers it. Columbia Gas, Enbridge, or CenterPoint maintains the pipes, reads your meter, and responds to emergencies regardless of who supplies your gas.

If you don't choose a supplier, you're automatically placed on the Standard Choice Offer (SCO) — the default rate set monthly by the utility based on market prices. About 3 million Ohio customers are on the SCO right now.

Three utilities currently use the SCO system: Columbia Gas of Ohio · Enbridge Gas Ohio · CenterPoint Energy Ohio

Duke Energy Ohio currently uses a different method called Gas Cost Recovery (GCR), but is moving to the SCO system in April 2026.

Hover over your county to see your utility.

Columbia Gas of Ohio Enbridge Gas Ohio CenterPoint Energy Ohio Duke Energy Ohio

Find your utility by ZIP code


Section 2

How the SCO Rate Is Set

The SCO rate you pay each month is calculated from two components:

  1. NYMEX month-end settlement price — the commodity cost of natural gas, determined by national markets. This changes monthly based on supply, demand, and weather.
  2. Retail Price Adjustment (RPA) — the supplier's cost to actually deliver gas to your utility's system. This is set through a competitive auction process, with results announced by PUCO.
SCO = (NYMEX settlement + RPA) ÷ 10 = $/ccf

Because both components can change, your SCO rate fluctuates monthly. You have no price certainty — it could go up or down from one bill to the next.

The 2025–2026 RPA spike The RPA jumped from $1.66/Mcf to $3.25/Mcf — a 96% increase. This is the primary reason bills have roughly doubled for SCO customers. The RPA is set by auction, and the latest auction produced dramatically higher bids. This isn't a one-time blip — it reflects structural changes in supplier costs.


Section 3

Understanding Your Bill — Line by Line

Your natural gas bill has two completely separate parts: delivery and supply. Most people see one big total and never look further. Once you understand the difference, shopping for a better rate becomes obvious — and the savings become very real.

💡

Only one part of your bill can change when you switch suppliers.

Columbia Gas charges for delivery (pipes, meter, infrastructure) and supply (the gas itself). Switching to a competing supplier only changes the supply line. Columbia Gas still delivers your gas, responds to emergencies, and maintains your service — nothing about that changes.

🏠 Delivery — Columbia Gas FIXED — Can't change
Fixed Monthly Delivery Charge
Meter, pipes, emergency service. Same every month.
$39.31
Usage Based Charges
Per-ccf distribution. Scales with usage.
$12.86
Infrastructure Riders
Pipeline replacement & safety programs. Can't opt out.
$12.80
Gross Receipts Tax (4.987%)
Ohio state tax on utility revenue.
$3.24
Delivery Subtotal$68.21
⚡ Supply — Your Supplier YOU CAN SHOP THIS
Gas Supply Cost
118 ccf × $0.499/ccf (best fixed rate example)
$58.88
Sales Tax on Supply
Applied to the gas commodity only.
$4.71
Supply Subtotal$63.59
If on default SCO ($1.071/ccf):
118 ccf × $1.071 + tax ≈ $133.88
vs. $63.59 on fixed — saving ~$70/month

Example based on a real Columbia Gas of Ohio bill at 118 ccf/month. Your charges vary by usage and rate class.

What are those "rider" charges?

Riders are PUCO-approved fees for infrastructure programs every Ohio utility runs. The names differ by utility but the concept is identical: mandatory charges for replacing aging pipelines, meeting federal safety requirements, and funding system upgrades. Switching suppliers never eliminates riders.

Infrastructure Replacement Program Rider

Replaces older cast iron and bare steel gas distribution pipes across Ohio.

~$5.33/mo
PHMSA Infrastructure Rider

Federal pipeline safety compliance requirements.

~$0.46/mo
Capital Expenditure Program Rider

Major system improvements approved by PUCO.

~$6.14/mo
Infrastructure Development Rider

New gas line extensions and system expansion.

~$0.87/mo
The bottom line: The only line that changes when you switch suppliers is the supply cost. Delivery, riders, and taxes all stay identical. With the SCO at $1.071/ccf today, that one line is costing the average Ohio household $50–$100/month more than it needs to.

Section 4

Ohio Gas Rate History

See how SCO rates have moved over time — and why locking in a fixed rate can protect you from spikes.

Source: PUCO official SCO historical charts. EIA Ohio Residential data used for pre-2018 reference.

Section 5

What Happened in 2022 (and Why It's Happening Again)

In early 2022, Russia's invasion of Ukraine sent global natural gas markets into chaos. European countries scrambled for liquefied natural gas (LNG), which drove up demand and prices worldwide. Ohio SCO rates hit $1.10/ccf in September 2022 — roughly 4× the COVID-era lows.

Through 2023 and 2024, prices fell back to a more normal $0.32–$0.50/ccf range as markets stabilized.

Then it happened again. In the 2025–2026 heating season:

This is a structural problem, not a one-time event. The SCO rate is exposed to both commodity market volatility (NYMEX) and supplier auction dynamics (RPA). As long as you're on the SCO, your bill is at the mercy of both. A fixed-rate plan eliminates this uncertainty for the length of your contract.

Section 6

Government Aggregation

Ohio law allows municipalities and townships to aggregate the buying power of all residents and negotiate a group gas or electric rate. This is called Governmental Aggregation.

Check if your municipality has a program by contacting your local government or calling PUCO at (800) 686-7826. Look for a "Governmental Aggregation" notice on your bill.

Already in an aggregation program? You may already have a better rate than the default SCO. Check your bill — if you see a supplier name other than your utility, you're either in an aggregation program or have previously chosen a supplier. You can still opt out and shop individually if you find a better deal.

Section 7

Understanding Your Rights as a Shopper

Before signing with any natural gas supplier, ask these questions:

Watch out for intro/teaser rates. Some suppliers advertise a very low price that only lasts for the first month, then switches to a market-based variable rate. Always confirm the rate that applies for the full contract term.

Section 8

Steps to Switch Suppliers

  1. Know your current supplier and rate. Check your bill — it's listed in the Supply section.
  2. Know your usage. Find your average ccf/month on your bill. This determines your actual savings.
  3. Compare rates at energychoice.ohio.gov or ohioratewatch.com.
  4. Check contract terms: ETF, monthly fees, term length, promo vs. locked rate.
  5. Calculate true monthly cost: (rate × your ccf) + monthly fee.
  6. Contact the supplier or sign up online. Have your utility account number ready.
  7. Wait 1–2 billing cycles for the switch to take effect. There's no service interruption.
  8. Mark your contract end date on your calendar.
  9. Review your rate at expiration — don't let it silently roll over to a variable rate.

Section 9

Glossary

Plain-English definitions — no jargon.

SCO (Standard Choice Offer)
The default gas rate you pay if you don't pick a supplier. Set monthly by PUCO based on market prices.
SSO (Standard Service Offer)
Same as SCO but for customers transitioning back from a supplier. Usually lasts 1–2 billing cycles.
NYMEX
The commodity exchange that sets the daily national price of natural gas — like a stock market for gas.
RPA (Retail Price Adjustment)
The supplier's cost to actually get gas to your utility's system. Set quarterly via competitive auction.
CCF
100 cubic feet of natural gas. Your bill is priced in $/ccf. (Enbridge uses $/Mcf = 1,000 cubic feet — divide by 10 to compare.)
Fixed Rate
A locked price per ccf for the length of your contract. Your commodity cost doesn't change with the market.
Variable Rate
A rate that changes monthly with the market. Could be good or bad depending on timing.
ETF (Early Termination Fee)
A penalty for canceling your contract early. Typically $50–$200.
Government Aggregation
A program where your local government negotiates a group gas/electric rate for residents.
PUCO
Public Utilities Commission of Ohio. Regulates utilities and certifies suppliers.
GCR (Gas Cost Recovery)
Duke Energy Ohio's current rate-setting method (different from SCO). Duke moves to SCO in April 2026.
Henry Hub
The benchmark natural gas pricing point in Louisiana. NYMEX prices track this closely.

Section 9

PUCO & Official Resources

Energy Choice Ohio

Compare current certified supplier rates for your utility.

energychoice.ohio.gov →

Columbia Gas SCO History

Official PUCO historical SCO rate charts for Columbia Gas of Ohio.

View charts →

Enbridge Gas Ohio SCO History

Official PUCO historical SCO rate charts for Enbridge Gas Ohio.

View charts →

CenterPoint Energy SCO History

Official PUCO historical SCO rate charts for CenterPoint Energy Ohio.

View charts →

PUCO Contact

Questions about your utility or supplier? Call the PUCO.

(800) 686-7826

Ohio Consumers' Counsel

Independent advocate for Ohio residential utility consumers.

occ.ohio.gov →

Energy Assistance Programs

Help with utility bills: HEAP, PIPP+, LIHEAP.

Learn about assistance →

Rate Change Alerts

Sign up for PUCO notifications when rates change.

Sign up at puco.ohio.gov →