It’s hard to believe how cheap natural gas has become.
On Thursday, Dominion said its monthly rate, called the Standard Choice Offer (SCO) starting Feb. 13 would be $3.68 per thousand cubic feet (mcf).
Dominion said the last time the price was this low was more than 13 years ago in November 1998, when customers paid $3.67/mcf.
Jeff Murphy, Dominion East Ohio managing director for commercial operations, oversees the regulated utilities’ Customer Choice Program and said indications are prices will remain low for years.
That’s because of increasing shale gas production and the mild winter weather. Murphy said there is even some talk that the United States could eventually become an exporter of natural gas. You can read more online at www.ohio.com/betty.
When I first started analyzing natural gas prices for the Beacon Journal in August 2000, we chose a $4.91/mcf rate during the one year when FirstEnergy offered a natural gas contract.
In following years, rates went to $6.99, $9.99 and then were capped at $11.30/mcf. Other rates were even higher. I’ll take these prices any day!
If you haven’t followed me to the SCO, you can read what to do online at www.ohio.com/betty.
Ask if there is a cancellation fee for leaving your fixed rate, but in almost every instance, the money you save from the fixed rate should more than make up for the fee.
Remember, the average home uses about 100 mcf a year, so take the difference in the price you pay and multiply it by 100 to see how much you would be saving, then compare that to the cancellation fee.
The next auction is Feb. 28 for what is called the “adder,” currently $1/mcf. That is added to the wholesale price to come up with the monthly SCO.
Summit aggregation update
The 17,000 households who received letters in error from Direct Energy about the Summit County aggregation group should have received their retraction letters this past week. If you got the letter in error, you don’t have to do anything and you won’t automatically be included in the aggregation group.
Direct Energy was supposed to send 3,400 letters about an aggregation, or group-buying deal, to residents in Summit County townships and the city of New Franklin. Instead, the letters went to people in Akron, Norton, Barberton and other cities. Spokeswoman Bethany Ruhe said the correct letters to those in the aggregation will be mailed no later than Feb. 9. You’ll have until Feb. 28 to notify the company by mail or phone that you want to opt out. It’s not advised to call before the letters go out since the call center might not be prepared to take the opt-out. Earlier Beacon Journal reports on this can be found online at www.ohio.com/betty.
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com. Follow her on Twitter at www.twitter.com/blinfisher and see all her stories at www.ohio.com/betty.
