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Click here to watch a video about the Ohio Choice program and SCO service. Vectren Energy Delivery of Ohio (Vectren) received Public Utilities Commission of Ohio approval to move to a more market-based price structure for its natural gas charges. Therefore, Vectren changed the way it buys gas for its customers who have not elected to purchase gas from an alternate natural gas supplier through the Choice program. Since October 2008, Vectren has been purchasing gas through third-party suppliers who competed in an auction process for the right to provide the natural gas commodity to these sales customers.

A new auction was held on Jan. 15, 2010, and resulted in a retail price adjustment of $0.155 per one hundred cubic feet (CCF). This amount is added to the New York Mercantile Exchange (NYMEX) month-end settlement price* for natural gas to form the total standard choice offer (SCO) gas cost charge, which will become effective April 1, 2010 through March 31, 2011. Because the majority of the SCO charge reflects the NYMEX-based market price, the monthly price will change because the natural gas commodity is bought and sold in an open market, and, as such, its price can vary with changes in supply and demand.

* The NYMEX month-end price is converted from therms to cubic feet given meters are read using cubic feet.

Four natural gas suppliers won the right to provide gas supply to Vectren customers at the SCO price. Those companies are DTE Energy Supply, IGS Energy, Ohio Natural Gas and Vectren Source. The SCO supplier serving your home or business will appear on your April 2010 bill as will the SCO price; see bill sample below.

Gas Supplier Detail Account Number: Standard Choice Offer – Company Name @ $0.xxxx per CCF Sales Tax Total Gas Supplier Charges

xxxxxxxxxxxxxx $xxx.xx $xx.xx $xxx.xx

Please note – regardless of the name of the supplier listed with the SCO line item, all suppliers’ monthly SCO prices are the same. Therefore, if a friend or neighbor is receiving SCO service but a different supplier is listed, you both are still paying the same monthly SCO price for your natural gas.

Vectren's charges for delivery service still appear under the line item entitled "Distribution and Service Charges." Keep in mind - as a Vectren customer, you can decide who supplies your natural gas. You can remain with Vectren’s SCO service or select an alternative gas supplier through the Choice program. Choice suppliers, who are certified by the Public Utilities Commission of Ohio, can offer pricing options that may be appealing to you.

Regardless of whether you remain with Vectren’s SCO service or choose another supplier, Vectren will continue to provide the same high quality natural gas delivery, pipeline maintenance and customer service you've come to expect.

Residential and small commercial customers who are not eligible for the Choice program will receive their gas supply through Vectren’s default sales service. Also, customers who choose not to renew their contracts with Choice suppliers or those who become ineligible for the Choice program will be placed on Vectren’s default sales service.

As a Vectren customer, you can decide who supplies your natural gas, you can remain with Vectren’s SCO service or select an alternative gas supplier through the Choice program.

This natural gas Choice program is designed to encourage more natural gas suppliers to enter the market and provide for a more open competitive market with a variety of pricing options that could save consumers money.

Frequently Asked Questions
What can competition do for the consumer?
Why would I want to choose another supplier?
How do I comparison shop for another gas supplier?
If I choose a gas supplier, what will Vectren continue to do?

What can competition do for the consumer?
A natural gas market open for retail competition brings more suppliers to the energy marketplace. In turn, these competing suppliers offer more pricing options (sales offers) that allow you to "comparison shop" for energy the way you do for other products and services. Currently, there are six companies competing in Vectren’s Ohio service territory; Direct Energy Services, IGS Energy, MX Energy, Ohio Natural Gas, Vectren Source and Volunteer Energy Services.

Why would I want to choose another supplier?
First, natural gas suppliers can offer pricing options that Vectren’s SCO service cannot. For example, through a supplier you can lock in a fixed rate and avoid uncertainties that often come with a fluctuating market. Some suppliers even make offers whereby they guarantee to beat the monthly SCO price for a set period of time.

The bottom line is that you have options with suppliers that you don’t have with Vectren’s SCO price – and these options can provide peace of mind and perhaps price savings. Furthermore, it makes no difference to Vectren whether you choose a supplier or remain with the SCO service; in either case, Vectren will still DELIVER the gas to your home or business.

How do I comparison shop for another gas supplier?
Click here for a step-by-step process.

If I choose a gas supplier, what will Vectren continue to do?

• Vectren will continue to deliver natural gas to your home or business.
• Vectren will continue to charge the approved rates for this distribution service.
• Vectren will still read meters and send bills. If you choose another supplier, they will simply be added to your Vectren bill.
• You should still try to contact Vectren if you have a natural gas emergency or suspect a natural gas leak.
• Vectren will continue to coordinate and to oversee the responsibility of ensuring reliable gas supply delivery from qualified gas suppliers to our service territory.
• Vectren will continue to provide safe and reliable gas distribution service.