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How does Direct Energy Regulated Services determine the cost for gas?

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How does Direct Energy Regulated Services determine the cost for gas?

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The regulated natural gas rate, also known as the Gas Cost Flow-through Rate (GCFR), is the rate you pay for natural gas if you have not chosen to enter into a contract with an energy retailer. The natural gas rate is based on two things: a forecast of market prices for the upcoming month and the amount that has been over or undercollected from previous months. Near the end of each month, a natural gas rate for the upcoming month is filed with the AUC for review. The natural gas rate paid by our customers reflects the costs to purchase natural gas and the costs involved with managing that gas supply.

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