The New York Mercantile Exchange (NYMEX) month-end settlement price for August was $3.651 per Mcf, down from $4.774 at the end of July. This means that Dominion East Ohio’s Standard Choice Offer (SCO) rate for residential customers will decrease from $5.974 per Mcf for August 16 to September 15 to $4.851 per Mcf for September 16 through October 15. For more information, see John Funk’s article in the Plain Dealer: Natural gas prices hit lowest point in 11 months
In John Funk’s conclusion, he states:
“For now, at least, the situation means that consumers should consider staying with a monthly variable price rather than sign a contract for a long-term, fixed price from an independent gas supplier.”
We agree with John Funk. For Dominion East Ohio customers, the lowest 12-month fixed price shown on the PUCO’s Apples-to-Apples website is $6.73, offered by Constellation NewEnergy. The other marketers have prices between $6.99 and $8.99 for 12 to 60 months.
The NYMEX 12-month strip (the average price of futures contracts for the next 12 months) on August 27th was $4.27. It hasn’t been this low since December 2002. At that time, marketers were offering prices well under $5 per Mcf. Unless we see prices drop below $5.50 for a 12-month fixed contract, we recommend staying where you are.
