Retail Suppliers Will Pay To Serve Default Service Customers at Dominion East Ohio As SCO Adder Goes Negative

The Standard Choice Offer auction to set the Retail Price Adjustment (RPA) at Dominion East Ohio for the period April 1, 2016 to March 31, 2017 saw the RPA established as $(0.05)/Mcf, according to a PUCO Staff auction report.

If approved, the Retail Price Adjustment will be "added" to the NYMEX closing price for the prompt month to set the Standard Choice Offer rate. The Standard Service Offer rate, provided to choice-ineligible customers, will be identical to the SCO rate.

In other words, with a negative RPA, retail suppliers are essentially paying for the privilege of serving SCO customers at a price below the NYMEX closing price for the prompt month

PUCO is to address results of the auction today.

The current Dominion East Ohio RPA is $0.02 per Mcf.

The SCO auction is a retail auction which assigns specific residential customers to winning suppliers (plus a portion of the residential and non-residential load ineligible for choice, such as Percentage of Income Payment Plan customers) for a one-year term.