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Dominion customers won't lose gas service

Some suppliers try to woo back clients

By Betty Lin-Fisher
Beacon Journal business writer

Published on Sunday, Mar 15, 2009

Here's an update on natural gas price issues:

• On Friday afternoon, the Ohio consumers' counsel issued an alert about an issue that has generated more than 100 calls to the state agency, which serves as the residential utility advocate.

The agency is saying a mailing by Dominion East Ohio Energy, the subsidiary of Dominion East Ohio Gas that offers natural gas contracts, is misleading residents into believing Dominion will stop supplying natural gas in April.

Actually, customers who don't choose a supplier and stay with the regulated utility Dominion will be provided gas by an assigned company, with the price based on an auction at a predetermined rate.

Dominion will no longer be the provider, but it will still deliver the gas and send you the bill.

The postal card says the customer has been identified as ''a natural gas customer that will no longer receive gas supply from Dominion East Ohio beginning April 2009. Instead your gas supply will be assigned to another company under the new Standard Choice Offer, or SCO.''

The postcard says the SCO might not be the lowest price available, so to contact the company for options.

Ohio consumers' counsel spokesman Marty Berkowitz said the agency has received many calls from confused customers who are afraid they will stop getting natural gas and are wondering about a company they believe is called Standard Choice Offer. A Public Utilities Commission of Ohio official said the agency shares the concern.

To be clear, no one will lose his or her gas supply. If you don't choose another supplier, one will be assigned to you, but I've always recommended that if one will be assigned, you should shop on your own. Also, Standard Choice Offer is just the name of the program, or rate, for the people who stay with the regulated utility.

Dominion East Ohio Energy spokesman Dan Donovan defended the postcard.

''We think it clarifies things,'' Donovan said. ''We're trying to be as clear and plain as possible.''

The company is offering a fixed rate of $9.39 per thousand cubic feet (mcf) through January, with a $100 cancellation fee.

Donovan said the postcards are being sent in periodic waves to customers who haven't chosen another supplier.

• Readers of this column know I switched to a variable monthly rate in February because the spread between fixed rates and monthly variable rates is so large.

The recession has had an impact on supply and demand and prices. My intention is to park on the variable rate for a while, but I still want to get a fixed rate before next winter.

 

I went with IGS Energy Services' variable, which is guaranteed to be 30 cents below Dominion's monthly price if you don't choose another supplier. That guarantee is through August.

IGS has stopped marketing that rate, but on Thursday, IGS Vice President Doug Austin said the company will give it to customers who call and ask for it (it will not be on the Web site). Call 877-444-7427.

Dominion's March rate will be $6.39/mcf, so if you switched early enough to get the March variable rate, you'll be paying $6.09/mcf. Most of you probably won't see your switch until April.

The cheapest fixed-rate offer available to the public is Direct Energy's $8.49 per thousand cubic feet (mcf) for 12 months with no cancellation fee (888-566-9988 or http://www.directenergy.com).

But recently, the aggregation group for Stow, Munroe Falls and Silver Lake negotiated a $6.96/mcf fixed rate, which begins in May until next March. Aggregations sometimes get great rates if they lock in a price at a good time. Sometimes they don't. This buying group is coming off a $15.13/mcf rate locked in at the all-time high last July. But that low fixed price gives me some hope that public prices from other marketers could come down, too.

• About ''win-back offers'' — Some suppliers are contacting customers who have switched to another company with ''win-back'' offers that include attractive prices exclusively available to them, or gift cards if they come back.

Weigh the offer for yourself and see whether it's worth it. Always ask about the terms, whether it's fixed and the cancellation fee. If you can get a good fixed price with a low cancellation fee to lock in for next winter, go for it. If prices come down more, then you'll have a small cancellation fee to leave.

• In industry news, the parent of Integrys Energy Services said it is seeking a corporate buyer for its nonregulated services, including natural gas service. An official said the company has just come off its most successful year, but with the growth of the division and the amount of corporate capital it takes to support a company of its size, it's seeking a buyer with a stronger balance sheet.

For consumers, there's not much to worry about at this point. There have been other marketers that have been sold and the new company honors existing prices and contracts. Also, if any company were to go out of business, customers would be sent back to the regulated utility, Dominion, and then could shop again.

To catch up on columns I wrote last month, look for Feb. 8 and Feb. 22 articles at the local library or online at http://www.ohio.com/energy.

Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.

 

Here's an update on natural gas price issues:

• On Friday afternoon, the Ohio consumers' counsel issued an alert about an issue that has generated more than 100 calls to the state agency, which serves as the residential utility advocate.

The agency is saying a mailing by Dominion East Ohio Energy, the subsidiary of Dominion East Ohio Gas that offers natural gas contracts, is misleading residents into believing Dominion will stop supplying natural gas in April.

Actually, customers who don't choose a supplier and stay with the regulated utility Dominion will be provided gas by an assigned company, with the price based on an auction at a predetermined rate.

Dominion will no longer be the provider, but it will still deliver the gas and send you the bill.

The postal card says the customer has been identified as ''a natural gas customer that will no longer receive gas supply from Dominion East Ohio beginning April 2009. Instead your gas supply will be assigned to another company under the new Standard Choice Offer, or SCO.''

The postcard says the SCO might not be the lowest price available, so to contact the company for options.

Ohio consumers' counsel spokesman Marty Berkowitz said the agency has received many calls from confused customers who are afraid they will stop getting natural gas and are wondering about a company they believe is called Standard Choice Offer. A Public Utilities Commission of Ohio official said the agency shares the concern.

To be clear, no one will lose his or her gas supply. If you don't choose another supplier, one will be assigned to you, but I've always recommended that if one will be assigned, you should shop on your own. Also, Standard Choice Offer is just the name of the program, or rate, for the people who stay with the regulated utility.

Dominion East Ohio Energy spokesman Dan Donovan defended the postcard.

''We think it clarifies things,'' Donovan said. ''We're trying to be as clear and plain as possible.''

The company is offering a fixed rate of $9.39 per thousand cubic feet (mcf) through January, with a $100 cancellation fee.

Donovan said the postcards are being sent in periodic waves to customers who haven't chosen another supplier.

• Readers of this column know I switched to a variable monthly rate in February because the spread between fixed rates and monthly variable rates is so large.

The recession has had an impact on supply and demand and prices. My intention is to park on the variable rate for a while, but I still want to get a fixed rate before next winter.

 

I went with IGS Energy Services' variable, which is guaranteed to be 30 cents below Dominion's monthly price if you don't choose another supplier. That guarantee is through August.

IGS has stopped marketing that rate, but on Thursday, IGS Vice President Doug Austin said the company will give it to customers who call and ask for it (it will not be on the Web site). Call 877-444-7427.

Dominion's March rate will be $6.39/mcf, so if you switched early enough to get the March variable rate, you'll be paying $6.09/mcf. Most of you probably won't see your switch until April.

The cheapest fixed-rate offer available to the public is Direct Energy's $8.49 per thousand cubic feet (mcf) for 12 months with no cancellation fee (888-566-9988 or http://www.directenergy.com).

But recently, the aggregation group for Stow, Munroe Falls and Silver Lake negotiated a $6.96/mcf fixed rate, which begins in May until next March. Aggregations sometimes get great rates if they lock in a price at a good time. Sometimes they don't. This buying group is coming off a $15.13/mcf rate locked in at the all-time high last July. But that low fixed price gives me some hope that public prices from other marketers could come down, too.

• About ''win-back offers'' — Some suppliers are contacting customers who have switched to another company with ''win-back'' offers that include attractive prices exclusively available to them, or gift cards if they come back.

Weigh the offer for yourself and see whether it's worth it. Always ask about the terms, whether it's fixed and the cancellation fee. If you can get a good fixed price with a low cancellation fee to lock in for next winter, go for it. If prices come down more, then you'll have a small cancellation fee to leave.

• In industry news, the parent of Integrys Energy Services said it is seeking a corporate buyer for its nonregulated services, including natural gas service. An official said the company has just come off its most successful year, but with the growth of the division and the amount of corporate capital it takes to support a company of its size, it's seeking a buyer with a stronger balance sheet.

For consumers, there's not much to worry about at this point. There have been other marketers that have been sold and the new company honors existing prices and contracts. Also, if any company were to go out of business, customers would be sent back to the regulated utility, Dominion, and then could shop again.

To catch up on columns I wrote last month, look for Feb. 8 and Feb. 22 articles at the local library or online at http://www.ohio.com/energy.

Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.



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toby galownia

Posted 07:37 AM, 03/15/2009

There is only one pipe with gas supplying a house or business. So, obviously the gas company is managed by crooks.


osu1

Posted 10:11 AM, 03/15/2009

Former State Senator Roy Ray, the former double dipping CFO for the University of Akron, made all this possible while receiving almost $300,000.00 from Ohio Edison.


Stan

Posted 11:19 AM, 03/15/2009

The letter from Dominion may be legal but it is misleading as understood by most people. It relies on the clever use of words like "supply" (with a specific legal definition) to create a false impression without technically lying.

They then use this tactic to try to induce less-than-informed customers to accept an above market price gas contract through the unregulated affiliate of Dominion.

Don't fall for it.

Unfortunately, the people who most need to hear this advice probably aren't reading these comments.


empowermentone1
akron, oh

Posted 05:57 PM, 03/15/2009

I will do anything and pay anything to be free
from devilion gas company .HELL wouldn't be hot if
dominion satan gas co supplied the heat the devil couldn't afford their prices..














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