Frequently Asked Questions about Customer Choice Programs

Q. What is the Voluntary Fixed-Price (VFP) plan?
A. The Voluntary Fixed-Price plan is an optional plan customers may choose that is designed to lock in the per unit cost of gas for the twelve billing months of November 2007 through October 2008 for participants in the plan.

Q. When can I enroll?
A. Enrollment for the 2007-2008 program will be available beginning September 1, 2007 and will end on October 19, 2007.

Q. If I sign up how long will I be in the plan?
A. Once you sign up you will be enrolled for the plan year beginning with your November 2007 bill through your October 2008 bill.

Q. If I sign up and later change my mind, can I get out of the plan?
A. No. You will remain in the plan until the plan year ends in October 2008.

Q. How do I sign up?
A. You can sign up by filling out the insert that comes in your September bill and returning it with your payment, or over the phone by calling 1-800-208-7267, or sign up online.

Q. How does this help customers?
A. Knowing the per unit cost of gas for each month will allow customers to budget for gas costs each month with greater accuracy. Gas costs are the most unpredictable part of the bill and this plan effectively eliminates the unpredictability for that part of the bill.

Q. Will I save money with this plan?
A. It depends on which way gas prices go over the 12 months. If they are higher than what was locked in, then you could save money; but, if they are lower than the prices locked in, then it may cost more money over the 12 months. This program does not in any way guarantee that you will have lower gas costs. It does guarantee that you will know upfront what those costs will be on a per unit basis.

Q. Does Oklahoma Natural Gas stand to gain or lose money by offering this plan?
A. No. Gas costs are always a straight pass through cost. The price Oklahoma Natural Gas Company pays for gas is exactly what we charge back to our customers. Oklahoma Natural Gas Company earns a return by charging for the service necessary to deliver the gas to the customer.

Q. Why is Oklahoma Natural Gas offering this plan?
A. Oklahoma Natural Gas Company understands the hardships that are caused for some customers when their gas bills go up dramatically. Oklahoma Natural Gas Company is offering this plan to help customers alleviate those spikes if they choose.

Q. How is the fixed price determined?
A. The price primarily consists of two components. The weighted average price of the gas that Oklahoma Natural Gas Company has locked in by forward pricing or injecting into storage by the beginning of August each year for the 12-month plan period, plus the per unit charge Oklahoma Natural Gas Company pays to reserve the right to buy gas for its customers.

Q. When will the fixed price be set?
A. The price has been set and it is $8.889 per Dekatherm of gas used during the November 2007-October 2008 plan year.

Q. How is the Voluntary Fixed-Price Program different from the Average Payment Plan?
A. With the Average Payment Plan you pay an amount each month based on a rolling 12-month average of your actual bills. The Voluntary Fixed-Price Program addresses only the cost of gas per dekatherm that you pay each month.

Q. Can I enroll in the Voluntary Fixed-Price Program and the Average Paymnet Plan?
A. Yes, our Budget Plus Plan is a combination of the Voluntary Fixed-Price Program and the Average Payment Plan. This additional customer choice option is a good budgeting tool that will allow you to know how much you are paying all year for the unit cost of gas portion of your bill as well as substantially leveling your monthly payments. Both plans should work well together.

Q. Can I enroll in the Voluntary Fixed-Price Program if I have opted out of the Temperature Adjustment?
A. No. The Voluntary Fixed-Price Program is available only to customers who have not opted out of the Temperature Adjustment. This is because both the Voluntary Fixed-Price Program and the Temperature Adjustment are designed to take the unpredictability out of your natural gas bill. It seems natural that the two go hand in hand. If you previously opted out of the Temperature Adjustment Clause but now want to participate in VFP you may choose to opt back in to the Temperature Adjustment Clause.

Q. Should I sign up for the Voluntary Fixed-Price Program?
A. That is entirely your decision. If you want to pay the same cost per dekatherm for the 12-month period, and you can accept that you may or may not have lower gas costs than you would otherwise, the Voluntary Fixed-Price Program could be for you.

Q. I have a commercial account. Can I enroll in the program?
A. Oklahoma Natural Gas Company understands the impact of fluctuating energy costs on small businesses so we requested and received approval to open the Voluntary Fixed-Price Plan up to small commercial, industrial, school and hospital customers that use less than 150 Dekatherms per year. Non-residential customers that qualify will receive a bill insert in their September 2007 bills. Non-residential customers are required to participate in our Automatic Bank Draft Plan, which is a hassle-free way to pay your Oklahoma Natural Gas Company bill, if they elect to participate in VFP. Learn more about Automatic Bank Draft.