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Annual Price Option
annual-price-option

Pay the same price for natural gas all year


Nebraska residential natural gas customers can soon lock-in their 2022-23 natural gas rate by enrolling in the Annual Price Option (APO) program. This program provides you the option to choose the security of a fixed natural gas rate rather than a variable rate.

Sign-up for the 2022-23 APO Program that begins on Aug. 15 and ends Oct. 7, or after 12,000 customers are enrolled whichever comes first. The program runs Nov. 1, 2022 through Oct. 31, 2023.  

Sign-up at annualpriceoption.com

How it works

Earlier this summer, we purchased a supply of natural gas for the APO program. Customers who choose the APO billing option will pay that price for natural gas for one year, from Nov. 1, 2022, through Oct. 31, 2023. While your bill will vary each month based on how much gas you use, you’ll pay the same rate for that gas all 12 months.

Customers who don’t participate will pay our traditional rate, where the gas prices fluctuate monthly based on market changes. This rate may be lower or higher than the fixed APO rate. 

Regardless of the billing option you choose, we pass the cost of gas on to you without markup or discount. All bills still include delivery charges, other fees, including the 2021 Polar Vortex, as approved by the Nebraska Public Service Commission and local and state taxes. See the terms and conditions below for details. 

APO price

The APO natural gas price for Nov. 1, 2022, through Oct. 31, 2023, (identified as “PGA” on your monthly energy bill) is listed below.

2022-23 APO natural gas price per therm*
(Nov. 1, 2022 - Oct. 31, 2023)**
2021-22 APO natural gas price per therm*
(Nov. 1, 2021 - Oct. 31, 2022)**
Current price 
- July 2022*
(Traditional billing natural
gas price per therm)**
$0.87649 $0.52797 $0.50858

 

Why are natural gas prices higher than previous years?

Natural gas demand, led by exports and increased power generation is outpacing supply. These factors have affected natural gas market rates, including the APO program rate.  

Terms and conditions

  • Participation in the 2022-23 APO program is limited to the first 12,000 customers who sign up on or before Oct. 7, 2022. Customers participating in the current APO program (2021-22) must re-enroll to participate in the 2022-23 program. 
  • Customers enrolled in the 2022-23 APO program after Oct. 2, 2021, are required to remain on APO for the entire one-year term, beginning with the November 2022 bill, unless they move out of Black Hills Energy’s Nebraska service territory. APO customers who move within Black Hills Energy’s Nebraska service territory will assume the APO rate for that area. APO customers moving to a Black Hills Energy service territory outside Nebraska will assume the traditional sales service there. APO customers moving out of a Black Hills Energy service territory will receive a final bill, due upon receipt. Customers considering APO should weigh having a fixed natural gas price with APO against traditional sales service, with monthly natural gas prices that can fluctuate and could possibly be lower than the APO gas price. 
  • Customers who use Black Hills Energy’s eBill, Budget Billing and Recurring Bank Transfer services may also sign up for APO. Budget Billing’s annual true-up still applies, as do other conditions. 
  • In addition to the natural gas supply cost, all customer bills include Black Hills Energy’s delivery charge (identified as “Base Rate” on the monthly Black Hills Energy bill), customer charge, and other fees and taxes  approved by the Nebraska Public Service Commission. The total bill is subject to the Gas Cost Reconciliation (identified on the Black Hills Energy monthly bill as “GCR”) per-Therm charge.
  • To assure the program is revenue-neutral to Black Hills Energy, the difference between Black Hills Energy’s total program costs compared to the total amount billed to all APO customers for the prior July-June 12-month period will be factored into the “GCR” (Gas Cost Reconciliation) amount for the following year. 
  • All customer bills, including those for customers who sign up for APO, will still increase or decrease based on the amount of natural gas used each month. 
  • All Nebraska customers are subject to any Nebraska Public Service Commission-approved charges, fees, taxes and/or adjustments including the 2021 Polar Vortex Fee of $0.16586.