Standard Choice Offer

Standard Choice Offer

How the SCO Price is Determined

An annual gas supply auction determines one component of the SCO – the Retail Price Adjustment. The February 4, 2014 auction set the Retail Price Adjustment at $1.40 per Mcf ($0.140 per ccf). That rate will be in effect from April 2014 through March 2015. The Retail Price Adjustment represents the supplier’s non-gas costs of doing business.

The auction also selected five SCO suppliers for April 2014 through March 2015: Constellation Energy Gas Choice, Inc.; Direct Energy Services, LLC; DTE Energy Trading, Inc. dba DTE Energy Supply; Interstate Gas Supply, Inc. dba IGS Energy; and Volunteer Energy Services, Inc.

The other component of the SCO is the market price for natural gas. It is reset monthly as market conditions change. Natural gas, like other energy commodities, is traded every business day on the New York Mercantile Exchange, also known as the NYMEX. Near the end of each month, a month-end “settlement price” is set for natural gas on NYMEX. The SCO is determined by adding the Retail Price Adjustment to the NYMEX month-end settlement price.

For more information on the SCO and how it's determined, see our SCO Questions & Answers and our SCO Video.

The Current Standard Choice Offer (SCO) Price
The table below shows the current SCO price, the typical residential customer's expected gas usage and a projected total bill, which includes Columbia's service and delivery charges and all taxes.

April 2014


Market Price*


Retail Price Adjustment*

SCO-Mcf

Ccf Conversion

SCO-Ccf

Average Usage

Total Bill**

$4.584
 $1.40 $5.984  div. by 10
$0.5984 83 Ccf

$83.33

*Market Price and Retail Price Adjustment are listed in dollars per thousand cubic feet (Mcf). Columbia bills customers per hundred cubic feet (Ccf).
**Includes Columbia service and delivery charges and all taxes.

*Helpful Hint:

NYMEX natural gas prices are set on energy value and reported in dollars per Dekatherm, or Dth. Columbia Gas bills are calculated per 100 cubic feet, or Ccf. The Retail Price Adjustment converts the NYMEX rate in dollars per Dth to a volumetric rate in dollars per Mcf. To convert Mcf to Ccf, simply divide by 10. For instance, if the NYMEX settlement price is $5.01 per Dth, and the Retail Price Adjustment is $1.40, the resulting SCO Price is $6.41 per Mcf, which converts to 64 cents per Ccf.