What does an OFO mean for your gas bill?

What does an OFO mean to your gas bill?

By AJ Brockman

February 15, 2021 – Our nation’s recent frigid temps have created some changes to the US energy markets.

Due to the high demand for natural gas caused by severe weather conditions, utilities across the country are issuing Operational Flow Orders (OFOs) or Critical Notices.

What is an OFO?

Under an OFO or Critical Notice, every natural gas customer must adhere to their monthly usage quantities indicated on their natural gas agreement/schedule. Any incremental usage above this quantity is subject to extreme market rates, which will impact your bill and ultimately your bottom line.

It’s important to note that these charges are not under your supplier’s control; your supplier is complying with the order that is coming from your local utility. Your supplier remains dedicated to providing you the natural gas you need in accordance with your contract terms.

What does this mean for you?

For those customers who are expecting to use more gas this week for heating, these OFOs could mean increased costs associated with your natural gas. Both your utility and supplier will do their best to protect you from these additional costs, but the risk remains for all gas customers in affected areas.

What can you do?

There are a few basic actions you can take:

  • If you have a zonal building management system and any vacant areas, you can reduce natural gas usage by lowering your heat temperature in any unoccupied area.
  • Turn down thermostats in any unoccupied areas.
  • Try to modulate your temperature settings whenever and wherever possible to reduce gas usage.

While this is directly impacting natural gas rates, electricity rates will likely also be affected. For those clients on an index power product, we would recommend curtailing power usage if at all possible to minimize cost increases.

 

Our offices are open today and our advisors are available, so please reach out to us with any questions or concerns.

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