Dominion East Ohio gas customers who choose not to choose an independent gas supplier are continuing to save money as Dominion's auction price keeps falling.
Dominion East Ohio gas company customers who still buy directly from the utility or who allow Dominion to assign them to gas suppliers who won the utility's 2009 auction will see prices fall 7 percent in mid-March.
Beginning Mar. 18 and running through mid-April, the price of gas for these customers who have not signed contracts with independent suppliers will be $6.22 per 1,000 cubic feet. The February-March price is $6.67 per Mcf.
These prices, which directly reflect wholesale prices, are significantly lower than any fixed-price contract currently being offered.
Average bills for these customers, including service and delivery charges, should be about $129, said Dominion.
Since 2006, Dominion has set its monthly gas price by adding a certain amount to the monthly contract price of natural gas set on the New York Mercantile Exchange. The amount added is determined by an annual wholesale auction Dominion uses to buy gas on behalf of its customers who won't or can't contract for gas on their own.
For the last year, Dominion has added $1.40 per Mcf to the monthly NYMEX price. The $1.40 covers the expenses and the profits of the wholesale suppliers.
In the latest auction, held a few weeks ago, the winning bidders agreed to an "adder" of just $1.20. Those bidders will not be identified until April while they line up suppliers.
Starting in April, Dominion will set prices by adding $1.20 to the monthly NYMEX price. NYMEX April contracts Monday were $4.68 for the amount of energy in 1 Mcf. The final trading day for April contracts is March 29.
