Constellation selected as natural gas supplier

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SIDNEY — Voters in Sidney, Fort Loramie, Russia and Bradford recently approved natural gas aggregation referendums seeking bulk-negotiated natural gas rates for eligible residential and small business customers in their respective communities. Constellation, a subsidiary of Exelon Corporation and a longtime competitive energy supplier, has been selected to serve the communities for the next 24 months at a fixed rate of 38.98 cents per 100 cubic feet (Ccf).

Affordable Gas & Electric (AGE) is the consultant for the collective group of communities and administered the bidding process. Constellation’s bid was selected from several suppliers who submitted bids including IGS and Volunteer Energy. Constellation’s fixed rate supply agreement will provide price protection and 24-hour customer service to customers in the communities. Natural gas supply service under the newly negotiated rates is scheduled to being in May 2016.

“We are very excited about the rate and term we have secured for the communities,” said Jeff Haarmann, managing partner of AGE. “The fixed rate and 24 month term means eligible residents will see protection from rising rates over the foreseeable future. This is exactly what aggregation is meant to do….provide an opportunity to secure great rates and long term stability. Of course, residents are still in total control. They have the ability to opt-out if they choose not to accept the community-wide rates we have secured. Given the rate and term, we anticipate 90 plus percent of all eligible residents will participate in this rate.”

Eligible customers, including those residential and small commercial customers currently on Vectren Energy Delivery of Ohio’s (VEDO) standard choice offer will automatically receive the new aggregated rate with no additional steps necessary. Residents who are on competitive supply with another supplier are eligible for the same rate and term, but will need to contact AGE or Constellation to switch to the aggregated rate at the conclusion of any existing contracts.

“I’m pleased with the natural gas rate that AGE negotiated,” Bradford Mayor Don Stump said. “I want to thank the voters of Bradford for passing the ballot issue that allows residents and small businesses to see significant savings on their energy bills.”

“In conjunction with electric aggregation, natural gas aggregation provides Fort Loramie residents with the opportunity to realize tremendous savings on their utilities,” Fort Loramie Mayor Randy Ahlers said. “I know that our residents and small businesses will benefit tremendously from this program.”

Russia Mayor Terry Daugherty agreed. “This rate is far better than the rate I was able to secure on my own,” Daugherty stated. “Our residents and small businesses should see real savings over the course of the next two years.”

“Acting on the advice of City Manager Mark Cundiff, City Council began the aggregation journey in an attempt to secure lower utility rates for our residents and small businesses,” Sidney Mayor Mike Barhorst said. “Because natural gas rates have been depressed, we were not certain that even through aggregation, we could see real savings. The rate that was secured for our aggregate is at or near 14-year lows in the natural gas wholesale market and among the lowest government aggregations rates across the entire Vectren service area.”

Constellation will work with community officials to notify all eligible customers of the natural gas supply rate, terms and conditions, and their right to opt-out of the program. Customers will have the right to opt-out of the aggregation program without penalty and continue to receive VEDO supplied natural gas. Customers who do not opt-out can leave the program at any time within the 24 month term without penalty.

A brochure detailing Constellation’s offer to eligible customers is currently being delivered to eligible residents. To learn more about Constellation’s natural supply offering, contact a member of Constellation’s dedicated customer care aggregation team at 1-844-275-0797.

Residents are also advised that they will receive a separate mail piece from VEDO. That piece will state that they are being switched to Constellation as their new natural gas supplier. This is a mandatory mailing from VEDO that states Constellation is the chosen supplier.

The letter can be confusing because customers think they are being switched away from VEDO. All residents will remain VEDO customers and will continue to be billed from VEDO as well as call VEDO for any customer service issues. The new aggregation rate applies only to the “supply” of natural gas used, which is now contracted through Constellation at a new fixed rate.

Staff report

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