The auction result will cover the period of April 1, 2011, to March 31, 2012, and is 20 cents less than the current retail price adjustment of $1.55 for natural gas. The PUCO on Wednesday approved the result of the online auction. Vectren conducted the auction, monitored by the PUCO staff and the Ohio Consumers’ Counsel, the state’s advocate for residential customers of utilities.
Vectren’s standard choice offer rate changes monthly. It is calculated as the sum of the retail price adjustment plus the New York Mercantile Exchange’s month-end settlement price for gas. The price adjustment reflects the winning bidders' estimate of their cost to deliver natural gas from the production area to Vectren’s service territory, the PUCO said.
Ohio began using the auction system in recent years to introduce market competition in efforts to lower consumers’ costs for natural gas. Under the system, Vectren continues to maintain the gas delivery network, deliver the fuel, offer payment plans and handle all emergency and customer service calls. But the suppliers provide the gas and compete to enroll customers.
Natural gas customers in Vectren’s service area are free to enroll with a supplier, join a government aggregation buying group or remain at the standard choice offer rate, the PUCO said.
Customers enrolled in the Percentage of Income Payment Plan (PIPP) or who are otherwise ineligible to participate in energy supply choice will be served at a new direct sales service rate identical to the standard choice offer rate, the PUCO said.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
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