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Contact: Marty Berkowitz
(614) 387-2962

Office of Ohio Consumers’ Counsel pleased with results from Dominion East Ohio auction

Consumers to see cost relief beginning in April

COLUMBUS, Ohio – February 11, 2009 – Natural gas bills for customers using an average of 99.1 Mcf per year and served by Dominion East Ohio Gas will be reduced by approximately $100 beginning in April through March 31, 2010 as a result of two separate online auctions held yesterday. Customers enrolled in the Energy Choice Program and served by an independent marketer are not affected by yesterday’s auction.

The auction price ($1.40 per Mcf) is added to the variable wholesale cost of natural gas determined by the New York Mercantile Exchange (NYMEX). The sum of these two amounts is the total monthly commodity charge that a customer pays. Customers are currently paying a $2.33 per thousand cubic feet (Mcf) “adder” to the monthly NYMEX commodity price. As a result of today’s auctions, the new adder amount will be effective April 1. The new bid price will remain in place through the next winter heating season. The next auctions will be held in February 2010.

Dominion held two auctions, one a Standard Service Offer (SSO) was for customers either enrolled in the Percentage of Income Payment Plan (PIPP) or otherwise ineligible to choose an independent marketer, and the other a Standard Choice Offer (SCO) was for customers who are not enrolled in the Energy Choice Program. The price resulting from these auctions will affect the commodity rates paid by approximately 342,000 of Dominion’s 1.1 million residential customers.

Both the SCO and SSO auctions resulted at a low bid of $1.40 per Mcf. However, since the final bid for the SCO auction could not be lower than the final bid entered in the SSO (PIPP) auction, the remaining bidders entered into an ascending clock auction to determine the amount they would be willing to pay in order to serve those customers in the tranches (customer blocks) they had bid on. The amounts bid by these marketers will be credited back to all Dominion customers. This means that in addition to lower costs for obtaining natural gas, customers will also receive a total credit valued at $1.449 million.

“The OCC is pleased that low-income customers enrolled in the PIPP program, as well as those who continue to purchase their natural gas from Dominion East Ohio will enjoy relief from paying higher natural gas bills,” said Janine Migden-Ostrander, Consumers’ Counsel. “We also want to stress to those who are concerned about the way their natural gas is being priced, that nothing will change for them other than the name of the supplier which will appear on their monthly statement.”

Prior to both auctions, concerns had been raised by non-choice customers about whether or not Dominion, by dividing portions of its natural gas customer base among independent marketers, would be relinquishing its duty to procure natural gas for customers. This currently is not the case. In order for Dominion to discontinue procuring natural gas for its customers, it would have to file an application with the PUCO. This is not expected to happen in 2009.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC Web site at www.pickocc.org.