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Contact: Marty Berkowitz
(614) 387-2962

Columbia customers may see changes to their bills in 2010

OCC believes wholesale auction could benefit consumers

COLUMBUS, Ohio – December 2, 2009 – Columbia Gas of Ohio customers may see differences on their bills beginning in April because of an agreement among the utility, the Office of the Ohio Consumers’ Counsel (OCC) and other parties. The Public Utilities Commission of Ohio (PUCO) approved the agreement.

Columbia Gas will hold a wholesale auction in February. Independent suppliers will bid for the chance to provide natural gas to Columbia’s customers. The rate, called the Standard Service Offer (SSO), will be the monthly wholesale price determined from the New York Mercantile Exchange (NYMEX) plus the retail price adder that results from the auction. The new rate will go into effect in April pending PUCO approval of the results, and replace the gas cost recovery (GCR) method Columbia now uses to bill its consumers.

The OCC reacted favorably to the PUCO’s approval of the agreement. “The wholesale auction has proven to be the most effective method for providing the cheapest option for consumers,” Consumers’ Counsel Janine L. Migden-Ostrander said. “The rates determined by other Ohio natural gas auctions have produced savings for customers and been lower than the GCR or what most retailers have been able to offer.”

Columbia will still be responsible for delivery of the natural gas, as well as pipeline maintenance and customer service issues. Consumers participating in choice programs who purchase natural gas through an independent supplier or as part of a municipal aggregation will not be affected by the change.

The auction will be conducted by an independent third party with the results certified by the PUCO. The SSO will remain in effect through March 31, 2011. A second auction is scheduled for February 2011 to determine the SSO rate for April 1, 2011.

As part of the agreement, the OCC negotiated for Columbia to provide $1.8 million for a low-income assistance program for consumers at or below 200 percent of the federal poverty guideline. The funds will be available in time for the 2010-2011 winter heating season.

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 website at www.pickocc.org.