What is gas and electricity transportation service, also known as third party energy supply?
Third party energy supply service offers you the option of obtaining your own gas and electricity supplies directly from energy producers, marketing companies or brokers, rather than purchasing these supplies from your local utility distribution company. When purchased in this manner, gas and electricity are usually cheaper because these energy supplies originate from unregulated entities, whereas utility distribution companies are subject to economic regulations from federal, state and local authorities. After you locate a suitable supply, you or your gas/electricity vendor must arrange for the energy to be delivered to your local utility’s service territory through the interstate pipeline system (gas) or the interstate power grid (electricity). For a transportation charge, your local utility company will then redeliver the gas/electricity to your business location.