Columbus
Dispatch…
Ohio
utility wants end to regulated
gas pricing
Dropping ‘default’ price will cost
users more, advocate says
By Dan Gearino
A
northeastern Ohio gas utility
wants to be the first in the state to end regulated pricing, a move
that a
consumer advocate says will remove a key protection for the people who
pay the
bills.
Dominion
East Ohio, which serves
the Cleveland area, has asked state regulators to approve a plan that
would
eliminate “default service” for natural gas. If approved, the state
would no
longer oversee a process designed to help assure low prices for
customers who
choose to buy from the utility.
This
would be the next step in gas
deregulation, a process that began in the 1990s by offering consumers
alternatives to doing business with the utility. Those alternative
natural-gas
providers, such as IGS Energy and Direct Energy, would become the only
option
for consumers.
Other
regulated gas companies might
follow with their own proposals, including Columbia Gas of Ohio.
Columbia
spokesman Ken Stammen said his company is looking at potential changes
to the
pricing system, but it is too early to speculate about specifics.
Ohio
law says natural-gas utilities
can make no profit from the sale of gas. They make nearly all their
profit from
gas delivery. Because of the nuances of this system, utilities have
been
willing to step away from sales of gas to residential and business
customers
and let marketers pick up the slack.
So
far, the only opposition to Dominion
East Ohio’s proposal is coming from Ohio Partners for Affordable
Energy, a
group that represents low-income customers. It has concerns that
Dominion’s
plan is a step toward higher prices and fewer protections for
customers. This
follows several years when customers have benefited from unusually low
gas
prices.
“Why
change when (the current
system) is producing excellent prices?” said Dave Rinebolt, the group’s
executive director. “Customers will be forced to pay more if they are
forced to
buy from marketers.”
But
not all consumer groups oppose
the plan. The Office of the Ohio Consumers’ Counsel, the state’s
advocate for
utility customers, agreed not to oppose Dominion’s plan in exchange for
a delay
in implementation of the change for households. Because of this,
Dominion’s
proposal would eliminate regulated pricing for business customers as
soon as
next year, but not until at least 2016 for residential customers.
“The
settlement preserves this
important option for residential consumers until at least April 2016,”
said Amy
Kurt, spokeswoman for the consumers’ counsel. “And, the PUCO cannot
later end
this option for residential consumers without at least hearing evidence
in a
public process, according to the settlement…
Dominion’s
leaders think customers
will be better off when the main competition is between marketers, as
opposed
to having the default price serve as a competitor with the marketers’
offers.
Dominion’s parent company also owns a gas marketer, Dominion Energy
Solutions.
Read
the rest of the article at the
Columbus Dispatch
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