PUCO approves new gas purchase system for Columbia Gas
COLUMBUS, Ohio – The Public Utilities Commission of Ohio (PUCO) today approved a new system that Columbia Gas will use beginning next year to purchase natural gas for customers who buy their gas directly from the company.
On April 1, 2010, the company’s Gas Cost Recovery (GCR) adjustment will be replaced by the Standard Service Offer (SSO). Columbia’s GCR customers will see the new term on their bills, but nothing else will change.
“Columbia Gas of Ohio will continue to deliver natural gas safely and reliably to our 1.4 million customers,” said Columbia Gas of Ohio President Jack Partridge. “Customers who buy their gas from Columbia will still buy their gas from us under the SSO and will not have to take any action.”
In February 2010, Columbia will hold a PUCO-supervised auction in which natural gas marketing companies will bid on the right to supply gas to Columbia. The company would purchase the gas from these suppliers and then re-sell it to customers at the auction-set price.
The change does not affect customers who purchase their gas from a third-party marketer through the Customer CHOICEsm Program.
The Standard Service Offer will be reset each month based on the market price for natural gas, plus a retail price adjustment that would be determined by the auction. Columbia Gas will continue to be prohibited by state law from earning a profit on gas sales, just as it is today under the GCR system.
Columbia Gas will still maintain its pipeline system, respond to emergencies, read meters, issue bills and answer customer calls, and would ensure that gas supplies are maintained in the event of a marketer default.
The GCR adjustment, which the SSO will replace, is set monthly based on market prices, plus adjustments for past over- and under-collections of natural gas costs by Columbia. The Office of the Ohio Consumers Counsel (OCC), low-income advocates, marketers and some Columbia customers have supported the SSO auction concept. The PUCO previously approved auctions at Dominion East Ohio and Vectren.
Columbia Gas of Ohio, with headquarters in Columbus, is one of the nine energy distribution companies of NiSource Inc. (NYSE: NI). Serving approximately 1.4 million customers in 61 of Ohio’s 88 counties, it is the largest natural gas utility in the state. NiSource distribution companies serve approximately 3.8 million gas and electric customers primarily in seven states.
For more information, check out our
Standard Service Offer Q&A