Natural-gas price questioned

The township's law director characterized pricing as 'bait and switch.'
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
HOWLAND -- Trustees and the township administrator are asking Ohio's attorney general to looking into what they believe is questionable pricing of natural gas.
Law Director Paula D. Maas sent a March 21 letter to Attorney General Marc Dann claiming a "bait and switch pricing scheme" of Commerce Energy of Ohio Inc.
The letter was sent after residents began complaining about the rate they are being charged by Commerce Energy.
Commerce Energy did not respond to a telephone message seeking comment Wednesday.
Administrator Darlene St. George explained during Wednesday's township trustee meeting that trustees and Commerce entered into an aggregate price agreement in August 2006.
St. George said the agreement called for Commerce to charge residents 9.45 per 1,000 cubic feet of national gas for six months and the best fixed rate it could find for the balance of an 18-month contract.
However, she said, it wasn't made clear to residents when the six months began -- when they received a Commerce Energy postcard making them aware of the fixed rate, or when they signed the agreement.
Some residents are now being charged 11.99 per mcf while others who have complained to Commerce Energy are paying 9.52. Others, St. George said, are being charged 9.99 mcf for the same service.
St. George said that she has discussed the rates charged by Commerce Energy with Dann, who told her that he isn't sure if the allegations should be reviewed by his office or the Public Utilities Commission of Ohio.
Blaming trustees
She said residents are blaming trustees for the higher rates, while they acted "in good faith" to get a lower rate while other companies were charging 12 to 15 per mcf.
What's more, Maas wrote to Dann, Commerce Energy charges a 25 penalty to switch to another supplier during the contract period.
"What has transpired based on the complaints lodged with Commerce Energy appears to be a piecemeal pricing system with different rates being charged to different customers under the same program for the same service," Mass wrote to Dann.
California-based Commerce Energy Inc. operates in nine states.
Mass wrote that out-of-state suppliers of natural gas should be held accountable for their pricing practices.
Also on agenda
In other business during the meeting, trustees:
Authorized the township's fiscal officer to advertise for bids to expand the township cemetery. Trustees plan to add more than 500 plots to the state Route 46 cemetery.
Agreed to buy a mower through the state purchasing cooperative program for 7,299.
Contracted with RAA Services to provide preventative maintenance to the township's nine outdoor warning sirens for 4,910 annually.
yovich@vindy.com