The SSO - What You Should Know
In December 2009, the Public Utilities Commission of Ohio (PUCO) approved a new system that Columbia Gas of Ohio will use to purchase and price natural gas for customers who buy their gas directly from the company.
Effective with the April 2010 billing cycle, Columbia will acquire the natural gas it needs to serve its direct sales customers from third-party suppliers selected through an annual wholesale gas supply auction.
Instead of Columbia Gas of Ohio purchasing gas on the open market over the course of the year, the company will have an annual auction where suppliers will bid to provide the volumes of gas that Columbia needs to buy. The suppliers who bid the lowest prices will be the winners of the auction. Auction results are subject to PUCO approval.
Columbia Gas of Ohio will purchase gas from the winning bidders and then sell it to its retail customers at the same price. This price is called the Standard Service Offer (SSO). Just like the Gas Cost Recovery price that it replaced, the SSO represents Columbia’s actual cost of acquiring natural gas. This cost is passed along to customers dollar-for-dollar, at zero profit to Columbia.
The first auction was held on Feb. 23, 2010, and the PUCO approved the results on Feb. 24, 2010.
For more information on commonly asked questions, check out our SSO Questions & Answers