Contact: Anthony Rodriguez (614) 466-9547
COLUMBUS, Ohio – Feb. 1, 2012 – Natural gas rates will drop for Vectren Energy Delivery of Ohio customers who purchase their natural gas supply from the utility. Based on the results of an auction held yesterday, customers will see their rates decrease by about $23 per year based on an average annual usage of 770 Ccf of natural gas.
Representatives of the Office of the Ohio Consumers' Counsel (OCC) were present at the auction to determine Vectren's new standard choice offer (SCO). The SCO is the default price for natural gas paid by customers who have not switched to a retail supplier. The price of natural gas makes up about 60 percent of a customers' monthly bill.
The auction established a new retail price adjustment to the wholesale price calculated each month on the New York Mercantile Exchange (NYMEX). The lowest bid submitted was $1.05 per thousand cubic feet, 30 cents lower than the current retail price adjustment established in a similar auction held in 2011. The Public Utilities Commission of Ohio (PUCO) approved the results of the auction today, and the new rates go into effect April 1.
"An influx of natural gas throughout the country is benefiting Vectren customers in the form of lower prices," Interim Consumers' Counsel Bruce Weston said. "This auction result is good news for customers."
This was the third annual SCO auction to be held since Vectren moved to price natural gas through a market-based system. The final bids of this latest SCO auction were accepted from three retail suppliers who competed and won the right to have their names listed on customers' bills. No matter the name customers see on their bill, the SCO rate provided by all three retail suppliers will be the same.
Vectren will continue to transport natural gas through its pipelines and be responsible for pipeline repair, meter-reading, billing and other customer service issues.
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