The City of Urbana is restarting its opt-out natural gas aggregation program ahead of the winter heating season.
IGS Energy was awarded the new contract following a bidding process administered by the city’s consultant, Affordable Gas & Electric (AGE). The new opt-out aggregation contracts will begin this October and offer a fixed natural gas supply rate of $0.799/ccf for a period of 24 months.
Residents currently served through Columbia Gas of Ohio’s Standard Choice Offer (SCO) have begun to receive opt-out letters from IGS Energy this week. Under the SCO program, residents are assigned to an approved supplier at a market-based rate that varies monthly and recently has been north of $1/ccf this summer. Market rates for natural gas are expected to remain increasing through this coming winter.
“Natural gas prices around the globe are at record highs,” said Jordan Haarmann, VP of Procurement for AGE. “The city was able to find a good spot in the market to lock in a fixed rate offer for residents through IGS Energy to help alleviate some of the higher heating costs expected this winter.”
Eligible residents in Urbana, which are those residents still served by the SCO offering currently, have started to receive opt-out letters from IGS Energy. Residents who wish to participate in the new natural gas aggregation rates are advised to do nothing with these notices and they will automatically be enrolled on IGS Energy’s aggregation rate for city residents. There is no penalty to opt-out of the program if a resident wants to stay on the SCO rates or choose a supplier of their own.
“Residents will remain in complete control of their gas bills this winter,” said Haarmann. “The aggregation programs offer a stable rate through what is expected to be a volatile market this winter.”
Residents who do not receive the opt-out letters can still participate by calling IGS Energy to opt-in to the program. AGE advises those residents to first check with their current natural gas supplier about contract status and early termination penalties before enrolling in the city’s program.
Any questions about the city’s electric or natural gas aggregation programs can be directed to the city’s consultant, AGE, at 618-203-8328.