Ohio Staff Post Results of Standard Choice Offer Auction Setting Adder to Default Rate

Vectren Energy Delivery of Ohio's Standard Choice Offer auction conducted on January 14, 2014 resulted in a Retail Price Adjustment of $1.05 per Mcf for the period April 1, 2014 through March 31, 2015.

PUCO is to address approval of the auction results today.

If approved, the new Retail Price Adjustment would be the same as the currently effective Retail Price Adjustment.

Under the SCO auction, winning suppliers will directly serve non-shopping, choice-eligible customers won through the auction for the period April 1, 2014 through March 31, 2015 at a price equal to the Retail Price Adjustment, fixed for the 12-month term, plus the NYMEX prompt month settlement price for gas. Winning bidders also provide a proportional share of the volumes required to serve choice-ineligible customers under Default Sales Service.

Nine tranches of customers were available in the auction, and bidders were limited to winning a maximum of three tranches. Seven bidders participated in the auction, which is the same number that participated in the year-ago auction.

There were five winning bidders in the January 2014 auction, with two suppliers winning 3 tranches each, and three suppliers serving 1 tranche each. Identities will remain confidential for 15 days.

Last year's auction produced three winning bidders.

World Energy Solutions conducted the descending clock auction.