For Immediate Release
Contact: Jason Gilham
614 | 466 7750
PUCO approves results of Vectren’s natural gas supply auction
COLUMBUS, OHIO (Feb. 1, 2012) – The Public Utilities Commission of Ohio (PUCO) today approved the results of Vectren Energy Delivery of Ohio’s standard choice offer (SCO) auction. The auction secured natural gas supplies for Vectren customers from April 1, 2012 to March 31, 2013 and established a retail price adjustment of $1.05 per thousand cubic feet (Mcf).
Vectren’s SCO rate changes monthly and is calculated as the sum of the retail price adjustment plus the New York Mercantile Exchange (NYMEX) month-end settlement price. The price adjustment reflects the winning bidders’ estimate of their cost to deliver natural gas from the production area to Vectren’s service area. The new price adjustment is 30 cents less than the current adjustment of $1.35 per Mcf.
Vectren 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, will be served at a new default sales service (DSS) rate identical to the SCO rate. Vectren will continue to deliver natural gas to all customers, offer payment plans and handle all emergency and customer service calls.
On Jan. 31, 2012, World Energy Solutions, Vectren’s auction manager, conducted a descending clock auction for the SCO. The PUCO Staff, Vectren and the Office of the Ohio Consumers’ Counsel jointly monitored the auction. Bids were submitted by seven suppliers based on fixed adjustments to the NYMEX settlement price. Three winning bidders will supply Vectren customers with natural gas beginning April 1, 2012.
The Commission today agreed with PUCO Staff’s post-auction assessment that the auction was conducted in a fair manner and accurately reflected the current natural gas market. The names of the three winning natural gas suppliers will remain confidential for 15 days to protect the suppliers’ positions in contract negotiations with pipeline companies. Vectren will conduct its next gas supply auction in January 2013.
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 07-1285-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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