Two months after it was applied for, the Public Utilities Commission of Ohio (PUCO) on Friday approved the implementation of the Vectren Energy Delivery of Ohio natural gas customer choice program. Under the program, customers can purchase gas from a competitive supplier and Vectren will continue to deliver that gas to their home or business. In addition, customers can now take advantage of joining governmental aggregating groups, which pool residents together to negotiate a better natural gas rate.

Vectren filed an application at the Commission in late June for permission to create a customer choice program (see Daily GPI, June 26). PUCO said the program was developed by the company and other parties, including the commission’s staff and the Ohio Consumers’ Counsel. The commission added that the program is in compliance with its competitive retail natural gas rules.

Under a phase-in approach to ensure that the necessary business systems and information technology are in place, 45,000 customers (15%) will be eligible for participation in the choice program beginning Jan. 1, 2003. On April 1, 2003, 100,000 customers (33%) will be eligible for participation. On Sept. 1, 2003, 100% of the service territory will have the option of choosing a competitive marketer.

PUCO said that all competitive supplier enrollment requests received on or before Nov. 30 will be eligible to participate in Phase One.

Under the program, suppliers and aggregators will be required to pay to Vectren a Balancing Cost Rider at a rate of 12 cents/Mcf. According to the commission, the rider will cover balancing costs associated with the gas that suppliers will deliver to Vectren for transportation to customers. Suppliers must also pay to Vectren a pool usage fee of 35 cents/Mcf to offset transportation costs.

Although all of Vectren’s customers may not choose to participate, the company said that a Transportation Program Cost Rider will be assessed to all Vectren customers. According to Vectren, the rider — not to exceed 5 cents/Mcf — is designed to recover costs associated with supporting the choice program including information technology and business system expenses, educational advertising expenses, and other ongoing costs. “The Transportation Program Cost Rider will remain in effect until all reasonable choice program development and maintenance costs incurred by the company are recovered,” PUCO said.

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