Natural gas utilities buy wholesale gas for their customers in a competitive national market, and may purchase gas from a number of competing businesses as federal law allows. Natural gas wholesale prices rise and fall based on supply and demand, along with other market dynamics.
Utilities recover wholesale costs on a dollar-for-dollar basis. They are allowed to earn returns on "non-gas" costs such as infrastructure upgrades, operations, and maintenance.
All rate recovery requires OUCC review and IURC approval in docketed cases.