Oklahoma Natural Gas Co. announces cost for voluntary fixed-price

Journal Record, The (Oklahoma City), Sep 5, 2007

Oklahoma Natural Gas Co. customers will have the option of locking in the per-unit price of the natural gas they use this winter at $8.889 per dekatherm.

The price will be offered to customers who choose to enroll in Oklahoma Natural's voluntary fixed-price plan.

The price will be effective for the 12-month period that begins Nov.1.

"The Voluntary Fixed-Price plan is a customer choice option that's designed to help consumers stabilize their fuel costs and manage their natural gas bills," said Ron Brown, vice president of administration. "While participation in the plan does not guarantee savings, it does reduce the volatility of natural gas prices on customers' bills."

Customers who participate will continue to pay the normal delivery charges, and their bills will still vary according to how much gas they use.

"But in this plan, the cost of the gas itself will not change," Brown said. "You will know that for every dekatherm you use, the gas cost portion of your bill will be $8.889." Brown said.

A dekatherm is the approximate amount of energy contained in 1,000 cubic feet of natural gas.

Oklahoma Natural Gas Co. purchases gas supplies for its customers through a competitive bidding process that includes both fixed- price contracts and contracts that are tied to market. Customers pay the company's average cost of gas, which varies from month to month.

Customers who enroll in the Voluntary Fixed-Price Plan are purchasing exclusively from fixed-price gas and gas in storage, for which there is already a known price.

Brown said customers who participate in the Voluntary Fixed- Price Plan may pay more or less over a 12-month period than customers who continue to pay the company's average price of gas.

Enrollment in the voluntary fixed-price plan, which is open to residential and small commercial customers, will continue through Oct. 19.

Customers can enroll at www.Oklahomanaturalgas.com.