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Dominion East Ohio SSO/SCO Auctions Result in Retail Price Adjustment of $1/Mcf
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March 3, 2011
Dominion East Ohio's auctions for Standard Choice Offer and Standard Service Offer supplies resulted in a retail price adjustment of $1.00/Mcf.
The Retail Price Adjustment will be added to the monthly NYMEX settlement price to determine the price paid by customers on the Standard Choice Offer and Standard Service Offer for the period April 1, 2011 through March 31, 2012.
Although the Standard Choice Offer process includes a mechanism under which retail suppliers may bid to serve specific retail customers, that process was not used in this auction, unlike in the first SCO auction in 2009, because suppliers were willing to serve the exact number of tranches available when the SCO auction hit the winning SSO price of $1/Mcf, which served as a price floor in the auction. The bidding for the right to serve customers, in ascending clock format, is only used if suppliers are willing to supply more customers than available at the SSO price, to further cull the supply offered.
The SSO auction was for wholesale supply for Dominion East Ohio to serve percentage of income payment plan (PIPP) and Choice-ineligible customers. Ten bidders participated in the auction for three tranches, with three winning bidders (the load cap was one tranche).
The SCO auction was for tranches of specific Choice-eligible, non-shopping retail customers that the winning supplier may serve as a retailer, with the supplier's name appearing on the customer's bill.
Thirteen bidders participated in the SCO auction, with four winning bidders splitting nine tranches. The SCO load cap was three tranches.
Winning bidder identities will remain confidential for 30 days.
The SSO and SCO auctions were conducted by World Energy Solutions, Inc.
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