It’s the time of year when new providers who have agreed to offer natural gas to what are called Standard Choice Offer (SCO) customers, based on the most recent yearly auction, will get randomly re-assigned and the new fee called an “adder” price goes into effect.
As a refresher, the SCO is the monthly variable price based on a state-approved formula.
This is the billing option I’ve been recommending for some time since pricing is low and supply is good.
Starting with bills this month after April 14, the yearly “adder” to set the price (using New York Mercantile Exchange figures for the previous month) will be 43 cents per thousand cubic feet (mcf). That is lower than the 60 cents/mcf adder for last year. It’s also a historic low.
The lower adder helped push down the SCO price for April.
As of April 14, it will be $5.01/mcf.
That’s 45 cents or 8.2 percent lower than March’s price of $5.46/mcf.
It’s 44 cents/mcf or 9.2 percent higher than last year’s prices.
The SCO price is at or below the fixed prices being offered by competitors.
SCO customers are randomly assigned a provider once a year, based on the companies who bid in an auction to provide the SCO pricing and other companies who later agree to participate in the program.
SCO customers will see their new provider listed as of April and May bills. Since it’s a random assignment, the provider could also stay the same, if the provider is participating this year.
It doesn’t matter to a customer who the SCO provider is. Look on the bill for the initials “SCO” next to your provider. That means you are on that rate and will get that pricing.
If you are not on the SCO and want it, call Dominion and ask for it. It will appear within two billing cycles. Make sure if you are canceling another contract, that you understand your cancellation fees.
Here’s the list of the SCO providers appearing on bills in April (after the 14th) and May: Constellation Energy Gas Choice Inc., Direct Energy LLC; DTE Energy Trading; Energy Cooperative of Ohio; Integrys Energy Services-Natural Gas LLC; Interstate Gas Supply Inc.; United Energy Trading LLC (doing business as Kratos Gas & Power and Volunteer Energy Services Inc.).