CLEVELAND, Dec. 2, 2016 /PRNewswire/ -- Abundant
regional shale natural gas supplies will help Dominion East Ohio
customers face an expected return to colder temperatures this
upcoming winter, at prices projected to be lower than the average
of the past five heating seasons, officials say.
Jeff Murphy, Dominion East
Ohio vice president and general manager, says a review of current
New York Mercantile prices, for January through March 2017,
indicates that average monthly natural gas prices would be in the
"low to mid-three dollar range per thousand cubic feet (mcf)."
Murphy notes that those NYMEX prices can, and often do change,
based on actual weather and other market factors. However, based on
current conditions, these price projections are still lower than
Dominion's five-year winter price average of $3.806/mcf, covering the 2011-12 through 2015-16
heating seasons.
Average monthly prices will likely be higher than last winter's
unusually low prices, which resulted from a unique combination of
warmer-than normal weather, increased production from shale areas
in Ohio and other states and
historically high storage levels, Murphy says.
For example, customers on the company's Standard Choice Offer
(SCO) or Standard Service Offer (SSO) rates will see a rate of
$3.182 per mcf, effective
December 13. Though higher than the
previous December rate of $2.226/mcf,
the December 2016 rate is still lower
than the $4.45/mcf December average
for the years 2011-2014, Murphy points out.
"Last year was an anomaly," Murphy says. "Record storage levels
and strong natural gas production collided with reduced demand
created by much warmer-than-normal weather. This caused market
prices to crater to decades-plus low levels. It was a classic case
of the law of supply and demand in action."
Even though natural gas storage levels are very high, reduced
drilling brought about by low prices and an expected return to
colder seasonal temperatures, has resulted in higher, though still
moderate, market prices, Murphy says.
Murphy adds that the location of Dominion East Ohio's system,
astride Ohio's major Utica and Marcellus shale production regions,
is helping moderate price increases for company customers. "Our
location so close to some of the fastest growing production areas
in the country provides greater supply reliability and ensures that
Dominion East Ohio can provide sufficient natural gas when our
customers need it most."
The company's SCO, available to choice-eligible residential
customers who have not already chosen a specific Energy Choice or
governmental aggregation supplier offer, is a combination of the
NYMEX monthly closing price and a Retail Price Adjustment, which is
set in an annual auction under Public Utilities Commission of
Ohio supervision. For the first
time, this year's auction produced a price adjustment of minus
5 cents per mcf. Murphy attributed
this result to an abundance of regional shale gas resources and
limited pipeline infrastructure to carry gas out of the region to
other parts of the country.
These same regional market dynamics also impact prices offered
by suppliers participating in the company's Energy Choice and
government aggregation programs. "I would advise all our customers
to research their natural gas supply options and select one that
best meets their family's needs," Murphy says. As always, customers
should review their current contract to see whether there are any
early termination fees or other provisions that might affect their
choice of suppliers.
Customers can evaluate their options at
www.dominiongaschoice.com, which provides interactive, one-stop
shopping information. Dominion East
Ohio supports the site, working with the PUCO, the Office of
the Ohio Consumers' Counsel (OCC), natural gas suppliers and
community organizations. To help consumers understand the costs and
terms associated with certified natural gas suppliers' offers, the
site offers such tools as links to the PUCO's "Apples to Apples"
comparison chart (www.puco.ohio.gov, or 1-800-299-7271) or the
OCC's "Comparing Your Energy Choices" chart (www.pickocc.org) and
other objective comparison tools.
About Dominion
Dominion (NYSE:D) is one of the
nation's largest producers and transporters of energy, with a
portfolio of approximately 26,000 megawatts of generation, 14,400
miles of natural gas transmission, gathering and storage pipeline,
and 6,500 miles of electric transmission lines. Dominion operates
one of the nation's largest natural gas storage systems with 1
trillion cubic feet of storage capacity and serves more than 6
million utility and retail energy customers. For more information
about Dominion, visit the company's website at www.dom.com.
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SOURCE Dominion East Ohio