Dominion East Ohio has changed the way it secures natural gas for customers who have not selected an alternative natural gas supplier. The changes do not affect customers that are currently enrolled with a supplier under the Energy Choice program.
Under the second phase of its gas supply pilot program, Dominion East Ohio will continue to secure gas for customers that do not participate in the Energy Choice program. The Standard Choice Offer (SCO) rate replaces the Standard Service Offer (SSO) rate on the bills of all Energy Choice-eligible customers. These customers have been assigned to an alternative supplier at the SCO rate, and the supplier’s name will appear on their bill.
Percentage of Income Payment Plan (PIPP) customers and other choice-ineligible customers still buy gas under the SSO rate. The SCO and SSO rates are the same, but SCO customers pay county sales tax on the supply portion of their bill instead of the excise tax assessed under the SSO rate.
Dominion East Ohio continues to deliver natural gas to all customers, offer payment plans, such as budget billing and handle all emergency and customer service calls. All customers pay the same distribution rate for the delivery of natural gas supplies to their homes and businesses. SCO customers are still free to choose an alternative natural gas supplier through the Energy Choice program or join a government aggregation buying group.
In February 2009, Dominion conducted two auctions to secure natural gas supplies for its customers for the period April 1, 2009 to March 31, 2010. One auction established a SCO rate for choice-eligible customers. The other established a new SSO rate for Percentage of Income Payment Plan (PIPP) customers and other choice-ineligible customers.
The SCO and SSO rates for April 1, 2009 through March 31, 2010 will change monthly based on the NYMEX month-end settlement price, plus a “Retail Price Adjustment” of $1.40 per thousand cubic feet (Mcf).
The NYMEX, or New York Mercantile Exchange, is a “stock market” for energy and precious metal commodities. It sets a daily national market price for natural gas. Demand for natural gas is seasonal, and the NYMEX price can change dramatically from one month to the next. Variables including supply and demand and the weather can cause prices to fluctuate.
The NYMEX month-end settlement price is set on the third business day from the end of the previous month. Dominion East Ohio customers can take that price and add to it the $1.40 per Mcf Retail Price Adjustment to get a preview of the following month’s SCO and SSO rate. Customers can learn more about the NYMEX and obtain natural gas market prices online at www.nymex.com.
Energy Choice customers who are currently enrolled with an alternative supplier are not affected; their contracts remain the same. If an Energy Choice customer’s contract expires or their supplier goes out of business, and the customer does not choose a new supplier, the customer will be assigned to a supplier at that supplier’s Monthly Variable Rate or may choose to be put on the SCO. Customers interested in choosing a competitive supplier can compare rate offers using the PUCO’s Apples to Apples comparison charts.
Dominion is continuing to transition out of the traditional regulated function of selling gas into a more competitive commodity market for its customers. About 75 percent of Dominion’s 1.2 million customers already participate in Energy Choice and the company continues to encourage all customers to investigate their options and to make the best choice for themselves. Under the SCO and SSO rates, the unrecovered gas costs disappear, making it easier to compare supplier offers.
In February 2010, Dominion will conduct another round of auctions for the period April 1, 2010 to March 31, 2011.
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