Stark County natural gas aggregation rates have been set. See new rates

Natural gas bills are about to change for those enrolled in the Stark County natural gas aggregation program.

Whether your bill will go up or down depends on your provider.

The rate for Enbridge Gas Ohio customers is increasing from $3.29/Mcf to $4.65/Mcf. The rate for Columbia Gas of Ohio customers is decreasing from $0.808/Ccf to $0.674/Ccf.

Eric Burns, director of aggregation and sales at Independent Energy Consultants, wrote in an email that the difference can be attributed to timing.

“The expiring Enbridge and Columbia rates were set at different points in the market and things have actually come down since the Columbia rate was last set,” he said.

There are many factors that impact natural gas rates, Burns said.

“The natural gas market is highly volatile,” he said. “Markets fluctuate based on supply and demand, weather, speculative trading, national economic conditions, international gas purchases, and a host of other reasons.”

Daniel Karney, associate professor of economics at Ohio University, said the wholesale price of natural gas “is driven by fundamental demand and supply conditions,” which are impacted by the price of other energy sources like oil.

The retail price of natural gas is comprised of the wholesale price and a Public Utilities Commission of Ohio-regulated distribution rate, Karney said.

Stark County’s new aggregation rates go into effect in October and will be fixed for 12 months. There is no early termination fee.

There are about 40,000 accounts currently enrolled in the Stark County aggregation program. The county’s supplier is IGS Energy.

Why enroll in the natural gas aggregation program?

The Stark County natural gas aggregation program was approved by voters in 2004 and started in 2005.

The program allows homes and small businesses in Stark County to form a buying collective to shop for more favorable utility rates.

Karney said aggregations can typically get a lower price on average.

Burns said another benefit of the county’s program is being able to lock in fixed rates for a period of time so customers can better budget ahead.

Homes and small businesses in Stark County are automatically enrolled in the program and will receive a letter from IGS Energy explaining the new rates. Letters were mailed to Columbia customers Sept. 5 and Enbridge customers Sept. 11.

Are there any other natural gas options?

Residents currently participating in the program that wish to remain in the program do not need to take any action and will automatically receive the new rate.

Residents in the program will receive an opt-out letter and must contact the supplier within 21 days of receiving the notice to withdrawl from the program.

For those who wish to opt-out and shop for their own rate, the Public Utilities Commission of Ohio provides a list of other publicly available offers on their website, energychoice.ohio.gov.

“Anyone considering those supply offers should be aware of any early termination penalties, fixed monthly charges, or automatic renewal provisions that can quickly offset any perceived savings,” Burns said.

Accounts that have already shopped for alternate supply outside the aggregation will not receive an opt-out letter. If you wish to join the aggregation program, contact IGS Energy.

Residents can contact IGS Energy at 877-353-0162 with any questions.

Reach Grace at GSpringer@gannett.com