Nearly half of the U.S. households with natural gas servicealready can or soon will be able to buy their fuel from acompetitive supplier, demonstrating how quickly competition isgrowing in the natural gas industry, according to a study by theAmerican Gas Association.

In an updated report released last week, AGA noted that nearly49%, or 26 million of the 54 million U.S. households with naturalgas service, could now or will soon be able to buy their naturalgas from a non-utility supplier. Customer choice has steadily grownin the past four years, with customer choice offered to fewer thantwo million customers nationwide before 1996, according to AGA.

The report, “Providing New Services to Residential Natural GasCustomers: A Summary of Customer Choice Pilot Programs andInitiatives,” said that competition exists in 23 states and theDistrict of Columbia. About 20%, or nearly one in five householdswith a choice option, already have switched suppliers, said thereport.

AGA reports that more than 95% of large-volume natural gascustomers, including factories and electric power plants, mayselect their own natural gas supplier. Also, nearly 70% ofcommercial natural gas customers, such as hospitals and officebuildings, have a choice in suppliers.

New York, which offers a statewide customer choice program,leads the country in the potential number of customers who maychoose their supplier, with 4.1 million customers and a potentialdemand of 339.5 Bcf. California, which offers customer choice toabout 4.07 million customers, is second with a potential demand of254.9 Bcf. Pennsylvania is third, offering choice to 2.49 millioncustomers and a demand of 217.9 Bcf, while New Jersey is fourthwith 2.25 million customers and 1.96 Bcf demand.

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