For Immediate Release
Contact: Matt Schilling
614 | 466 7750
PUCO approves results of Dominion natural gas supply auctions
COLUMBUS, OHIO (March 2, 2011) – The Public Utilities Commission of Ohio (PUCO) today approved the results of Dominion East Ohio’s standard choice offer (SCO) and standard service offer (SSO) auctions. The auctions set a new retail price adjustment of $1 per thousand cubic feet, a decrease of 20 cents from the current price adjustment.
“The auction process has again yielded positive results for Dominion East Ohio customers,” PUCO Chairman Todd A. Snitchler stated. “The market continues to provide a competitive commodity price for natural gas.”
The SCO and SSO rates change monthly and are calculated as the sum of the retail price adjustment plus the New York Mercantile Exchange (NYMEX) month-end settlement price. The retail price adjustment reflects the winning bidders’ estimate of their cost to deliver natural gas from the production area to Dominion’s service territory. The new retail price adjustment will be implemented on April 1, 2011.
Dominion’s SCO customers are free to enroll with an energy choice supplier, join a government aggregation buying group or remain at the SCO rate. Customers who are already enrolled with an alternative supplier or a government aggregation group will not be affected by the new SCO rate; their contracts will remain the same.
Customers who are enrolled in the Percentage of Income Payment Plan (PIPP) or who are otherwise ineligible to participate in energy choice, are served at the standard service offer (SSO) rate which is identical to the SCO rate. Dominion will continue to deliver natural gas to all customers, offer payment plans and handle all emergency and customer service calls.
On March 1, 2011, World Energy Solutions, Dominion’s auction manager, conducted two descending clock auctions. The PUCO Staff, Dominion and the Office of the Ohio Consumers’ Counsel jointly monitored the auctions. Bids were submitted by natural gas suppliers based on fixed adjustments to the NYMEX settlement price.
The Commission today agreed with PUCO Staff’s post-auction assessment that the auctions were conducted in a fair manner and accurately reflected the current natural gas market. The names of the winning natural bidders will remain confidential for 30 days to protect the suppliers’ positions in contract negotiations with pipeline companies. Dominion will conduct its next round of gas supply auctions in February 2012.
A copy of today’s Commission entry is available at www.PUCO.ohio.gov. Click on the link to the Docketing Information System and enter the case number 07-1224-GA-EXM. Customers who are interested in choosing an energy choice supplier can compare rate offers using the PUCO’s online Apples to Apples comparison charts.
The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business, and industrial consumers have access to adequate, safe, and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO Call Center at (800) 686-PUCO (7826) and speak with a representative.
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