1. MICA Newsletter October 2011
Natural Gas Update AEP-Ohio Update
The NYMEX settlement price at the end of September AEP-Ohio (i.e., Columbus Southern Power and Ohio
was $3.759 per thousand cubic feet (Mcf), down from Power) has proposed new rate plans to be effective on
$3.857 at the end of August. For Dominion East Ohio January 1, 2012. These proposals and a proposed
commercial and residential customers under Choice, settlement are pending at the Public Utilities
the price to beat is NYMEX plus $1, or $4.759 in Commission of Ohio (PUCO). We don’t currently know
October. After years of increases, natural gas prices how this will play out and what the new rates will be.
have been falling recently, as shown in the graph However, we have been modeling the impact of the
below. Prices could continue to fall due to major proposed rates on MICA members who are served by
breakthroughs in shale drilling technology. Now is the Ohio Power. Some customers could see significant
time to consider what processes may be less increases. The result depends upon the current rate
expensive to operate with natural gas than with schedule and load profile.
electricity. Contact us if you want to discuss this in
more detail for your facilities. Even with this rate uncertainty, there may be
opportunities to save by shopping for generation. If
you are not already shopping for generation, we can
facilitate obtaining a price quote from FirstEnergy
Solutions and other suppliers. For customers with
demand greater than 500 kW, AEP requires a 90-day
notice to switch to a retail electric supplier. In order to
switch on January 1, 2012, you would need to notify
rd
AEP by October 3 . Contact us for more
information.™
Welcome to our new MICA member
DRS Industries, Inc.
Holland, Ohio
Residential and small business customers should
watch the mail for opt-out forms from natural gas CALENDAR OF EVENTS
aggregators. You may be automatically enrolled in
GEAUGA GROWTH PARTNERSHIP
your community’s natural gas aggregation program
unless you opt out, and the price may not be better NEWBURY BUSINESS PARK
than the utility’s default variable price.™ 12373 KINSMAN ROAD, NEWBURY
NOVEMBER 9, 2011, 7:30 A.M. TO 11:00 A.M.
After a continental breakfast, Mike and Matt Brakey will
speak about energy savings opportunities for FirstEnergy
The Governor’s Energy Summit customers. If you would like to attend, please contact
Mike Brakey and James Weems attended the Ohio Frank Samuel at fsamuel39@sbcglobal.net.
st
Governor’s 21 Century Energy & Economic Summit 16TH ANNUAL OHIO ENERGY MANAGEMENT
in Columbus on September 21 & 22. One of the key CONFERENCE
items discussed was the favorable impact the
THE COLUMBUS RENAISSANCE HOTEL
Marcellus and Utica shale gas deposits will have on
not only natural gas prices but also electric generation 50 NORTH THIRD STREET, COLUMBUS
prices. For more information about the summit, see FEBRUARY 21-22, 2012
www.battelle.org/conferences/ohioenergy/™ See www.mecseminars.com for more information.™