Office of the Ohio Consumers' Counsel

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Contact: Mary Berkowitz
(614) 387-2962

Lower Natural Gas Prices May Mean Good News for Ohio Consumers Next Winter

COLUMBUS, Ohio – July 20, 2009 – While Ohioans continue to enjoy the mild summer temperatures, it is easy to forget that cooler weather will be back with us before we know it. It will soon be time for residents to consider the most economically sound way to pay for their home heating needs.

Natural gas prices are at a five-year low. This is in stark contrast to the situation one year ago when the wholesale price on the New York Mercantile Exchange (NYMEX) was approximately $1.12 per Ccf (hundred cubic feet). The price today is approximately $.37 per Ccf.

There are several reasons for the ongoing low cost of natural gas. Among them are storage levels, which are approximately 26 percent above the level of a year ago. This is due in part to the ongoing recession and the fact that businesses and residents have reduced their usage during a slow economy.

The Office of the Ohio Consumers’ Counsel (OCC), the residential utility advocate, is a strong proponent of safe natural gas delivery to Ohio citizens at the lowest cost option available to them. The counsel advises natural gas consumers to consider all their options wisely prior to making their energy choices for the upcoming winter.

“Given Ohio’s current economic difficulties, this office is pleased that Ohio’s natural gas customers are seeing some relief in the form of lower natural gas prices,” said Ohio Consumers’ Counsel Janine L. Migden-Ostrander. “Hopefully, the lower prices will result in fewer customers being disconnected during these stressful times.”

Customers should take a few moments to review their monthly gas bill and understand the charges listed. They then can decide whether there are ways to save either by going to an independent supplier or choosing not to and staying with their local natural gas utility.

Consumers who choose an independent supplier also have the option of a variable rate, which will change every month, or a fixed rate contract, which will set a price for the duration of the contract. Those choosing a fixed rate option should ask the supplier whether there are early termination fees and, if so, how much they are.

Customers remaining with their local distribution company will be charged either the gas cost recovery (GCR) charge, which Columbia Gas and Duke Energy currently estimate as the amount it cost them to purchase and transport the product; or in the case of Dominion East Ohio and Vectren Energy Delivery of Ohio, the standard service offer (SSO), which combines the wholesale NYMEX price with a retail price adjustment determined by a public auction.

The OCC offers an up-to-date chart listing all independent suppliers in Ohio, their rate offers, whether the rates are fixed or variable, and the contract length. You may find this document, titled “Comparing Your Energy Choices,” on the OCC Web site at www.pickocc.org . The site also includes fact sheets discussing natural gas billing choices as well as ways to save energy and reduce costs. You also may contact the OCC toll free at 1-877-742-5266 or 1-877-PICKOCC for any questions or concerns you have about your utility bills.

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.