NorthWest Ohio Aggregation Coalition Saves $700K on New Gas Deal – Or $9 Per Customer Annually

The Northwest Ohio Aggregation Coalition– a coalition of local governmental entities – has negotiated a new natural gas contract with an alternative gas provider that will save residential and commercial customers about $9 annually over the next two years, according to a March 15 report by The (Toledo) Blade.

Mark Frye, the coalition’s energy consultant,told the local news outlet that the group has decided to continue obtaining gas from Volunteer Energy Services Inc. of Pickerington, Ohio. The new contract runs from May 17 through April, 2019. The current contract, which saved residents $12 to $17 over two years, expires at the end of next month.

Frye said that the $9-a-year savings is based on normal winter weather and gas usage. Overall, the coalition expects to save $700,000 a year that will be spread among its 40,000 to 45,000 households.

Under the new deal, customers will pay two cents less on the state-approved service fee that accompanies the standard Columbia Gas of Ohio bill, NOAC said.

Starting in April, Columbia Gas’ bills will be based on the monthly closing price of gas per 100 cubic feet on the Nymex market, plus a 14.5 cent state fee, known as an “adder.”

If residents want to be covered by the new contract, they need do nothing. However, if they decide to choose their own gas provider, they must fill out the opt-out card and return it. The coalition of nine area communities that buys natural gas in bulk to help residents save on their heating bills plans to send opt-out notices to its residents in two to three weeks.

NOAC membership includes Toledo, Lucas County, Sylvania, Maumee, Holland, Perrysburg, Lake Township, Oregon, and Ottawa Hills.

Traditionally the NOAC member communities have had three different opt-out governmental aggregation programs available for its member communities and their participants:  1)  a residential electric program; 2) a small commercial electric program and 3) a natural gas program encompassing both residential and small commercial participants. The goal of the communities is to maximize the savings potential of the member of the communities that decide to participate and minimize the cost of the participants to avail themselves of other alternatives,  if they so choose.