By JAN LARSON McLAUGHLIN
BG Independent News
Next year, several Bowling Green residents can bump their heat up a couple degrees, dump the triple layers of clothing – and not feel guilty about it.
On Monday, the Board of Public Utilities accepted the lowest natural gas rate since 2012 for city residents and small commercial businesses using Columbia Gas.
The price that is now locked in for city customers is 18 percent lower than the current price.
“Eighteen percent – that’s pretty good,” said Brian O’Connell, the city’s public utilities director. “That’s the lowest price we’ve ever had” in the aggregation program.
And instead of the usual six month contract, this price is locked in for 24 months, O’Connell told the board.
Typically, the longer term fixed price options are more expensive, he said, so this long-term price is a bonus.
“We’ll be set for the next two years,” he said.
The lowest bid came from a gas supplier called Volunteer. The price per ccf (100 cubic feet) will be $0.3855 compared to $0.470 for this year. The highest cost seen so far through the program was $0.633 in July of 2014.
Columbia Gas customers in the city will automatically be included in the aggregation program, unless they opt out of the program.
Customers will still have the ability to switch to another supplier at any time with no cancellation fee.
Large customers, like industrial users, are not eligible for the program.
Most residential and small commercial gas customers participate in the program. Why not, O’Connell asked.
“We’re just offering another option for customers,” he said.
The 18 percent reduction only covers the actual volume of the natural gas being purchased – not for the infrastructure costs to Columbia Gas.
Bowling Green started its natural gas aggregation program in 2004 to offer savings for local Columbia Gas customers.
O’Connell explained that because of the way gas pricing works lately, he typically has to tell the gas supplier to lock in a fixed price the same day the price is quoted to the city.
“For the aggregation program to work, I have to be able to respond quickly,” he stated.
