Office of the Ohio Consumers' Counsel

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Contact: Marty Berkowitz
(614) 387-2962

Columbia Gas of Ohio customers may continue seeing lower bills

COLUMBUS, Ohio – February 24, 2010 – As a result of the first wholesale auction for Columbia Gas of Ohio, customers will see lower prices, according to the Office of the Ohio Consumers’ Counsel (OCC). Columbia customers have seen lower wholesale prices in 2010 because of reduced demand and plentiful supplies of natural gas in storage.

Seven independent natural gas suppliers completed bidding Tuesday for portions of Columbia’s supply. The lowest bid, $1.93 per thousand cubic feet of natural gas, will be added to the monthly wholesale price listed on the New York Mercantile Exchange beginning April 1. The auction results were approved today by the Public Utilities Commission of Ohio (PUCO).

This amount, referred to as the retail price adjustment, is 60 cents lower than the adder to Columbia’s gas cost recovery (GCR) rate, based on a two-year average and 80 cents lower based on a five-year average. Based upon these averages, it is estimated that residential customers will see annual savings of between $50.46 and $67.28.

Upon approval, the new rate, called the Standard Service Offer (SSO) will replace the GCR method Columbia has traditionally used to bill its customers.

The Office of the Ohio Consumers’ Counsel (OCC) has previously supported wholesale auctions and reacted positively to the Columbia results. “The results of the most recent wholesale auctions have been good news for Ohio’s natural gas customers,” Consumers’ Counsel Janine L. Migden-Ostrander said. “The rates determined by wholesale auctions have produced savings for consumers and been lower than what the GCR or most retailers have been able to offer. We are pleased with the outcome of this first auction for Columbia Gas.”

Columbia will still be responsible for delivery of natural gas, as well as pipeline maintenance, meter reading and other 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 was conducted by World Energy Solutions, an independent auction manager. The SSO will remain in effect through March 31, 2011. A second auction will be scheduled in February 2011 to determine the SSO rate beginning April 1, 2011.

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.