Contact: Anthony Rodriguez (614) 466-9547
COLUMBUS, Ohio – Feb. 14, 2012 – "Columbia Gas of Ohio customers will see lower bills as a result of a natural gas auction held today," the Office of the Ohio Consumers' Counsel (OCC) said. As a result of the auction, rates will decrease about $29.75 per year based on an average annual usage of 850 Ccf of natural gas.
The auction established a new retail price adjustment which is added to the New York Mercantile Exchange (NYMEX) wholesale price. This adjustment covers the winning bidders' non-gas costs of doing business. The lowest bid submitted was 15.3 cents per hundred cubic feet, 3.5 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.
This was the first time Columbia Gas held a retail auction to determine the price of its natural gas supply. Customers who do not shop for competitive alternatives will receive natural gas through the Standard Choice Offer (SCO) and see changes on their bills as a result of the retail auction. The name of the supplier who won the right to supply the natural gas will appear on the customers' bills, alongside the Columbia Gas logo. However, the retail price adjustment will remain the same regardless of the name of the supplier on the bill. Customers also will pay their county sales tax rate, between 6 percent and 7.75 percent instead of a lower excise tax of 4.987 percent for the natural gas they use.
Columbia Gas remains responsible for delivery of the natural gas, as well as pipeline maintenance and customer service issues. Customers 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.
End of Page
Return to Top