Natural Gas Prices

The New York Mercantile Exchange (NYMEX) month-end settlement price for July was $4.774 per MCF, up from $4.717 at the end of June.  This means that Dominion East Ohio’s Standard Choice Offer (SCO) rate will increase from $5.917 per MCF for July 16 through August 15 to $5.974 per MCF for August 16 through September 15.    This is the default price for customers who decide not to buy their natural gas from an alternative supplier.  Watch the Public Utility Commission of Ohio’s website for information on the prices being offer by alternative suppliers.

A few months ago, FirstEnergy filed with the Public Utilities Commission of Ohio (PUCO) a proposed rate plan for the 3-year period beginning on June 1, 2011.  While the PUCO has not yet made a decision on this proposal, several parties have agreed to support the plan.  Most recently, the Northeast Ohio Public Energy Council (NOPEC) agreed to drop its opposition to the plan in exchange for some concessions from FirstEnergy.  The Office of Consumer’s Counsel is the only party actively opposed.

As John Funk reported in today’s Plain Dealer (FirstEnergy deal paves way for approval of new rates), the PUCO may approve the plan by mid-August.  FirstEnergy wants to hold an auction in October to set generation prices for the period covered by this new rate plan, June 1, 2011 through May 31, 2014.  This will allow consumers who wish to contract with alternative suppliers for their generation services to know the utility’s standard price, or “price to compare”.

Some mercantile customers of FirstEnergy in Ohio can avoid paying a new charge (called the DSE2 charge) by putting energy efficiency programs in place.  The proposed rates for this charge have not yet been approved by the Public Utilities Commission of Ohio (PUCO).  The charge will start small but grow over time as the energy efficiency mandates imposed on the utilities by a 2008 state law increase in each of the next 15 years.  Contact us if you want to know more about applying for exemption from this charge.

Mike Brakey was quoted in a June 21st Crain’s Cleveland Business article by Chuck Soder regarding this opportunity:

Mike Brakey, principal of energy consulting firm Brakey Energy of Shaker Heights, expects the fee to become a sizable part of customers’ energy bills.

“It could vastly drive up costs for everyone,” Mr. Brakey said.

 

The New York Mercantile Exchange (NYMEX) month-end settlement price for June was $4.717 per 1,000 cubic feet (MCF), up from $4.155 at the end of May.  Therefore, Dominion East Ohio’s Standard Choice Offer (SCO) rate will increase from $5.35 to $5.92 per MCF for July 16th through August 15th.  For more information, see John Funk’s recent article in the Plain Dealer: Natural gas prices rising