Struthers and residents eligible for group gas rate

The program includes a discount for senior citizens age 65 and older who are the primary owners of their residence.

STAFF REPORT

STRUTHERS — The city has entered into a contract with a natural-gas supplier, enabling the city and its residents to receive a fixed rate of $9.766 per thousand cubic feet for a two-year period.

Effective Dec. 1, Direct Energy will serve as the community’s preferred natural gas supplier. The rate will cover the January 2009 through December 2010 bill cycles. The rate excludes taxes and fees for services provided by the utility, officials said.

The program also includes an additional discount of 10 cents per thousand cubic feet off the initial commodity price for senior citizens age 65 and older who are the primary owners of their residence.

“With the weather cooling off, snow is not the only thing in the forecast,” said Mayor Terry Stocker. “To protect the community from fluctuating energy prices, we are providing a stable rate through the Direct Energy program.”

Stocker called the gas aggregation program a “golden opportunity to lock in rates for up to two years while the cost of gas is low.” The mayor pushed at the Oct. 8 meeting of city council for passage of an ordinance that gave him the authority to enter into contract with Buckeye Energy Brokers. Buckeye, based in Twinsburg, represented the city in negotiations with Direct Energy.

Stocker said there is no financial risk to the city because Buckeye Energy’s fee is paid by the gas vendor. Also, the mayor said residents can get the same rate as the city, but if they are satisfied with their current gas supplier, there is no requirement that they join the aggregate program.

Residents and small businesses in incorporated areas in Struthers are eligible to participate in the program, and will receive information via mail describing the offer the first week of November 2008. Those wishing to “opt-In,” or senior citizens requesting the discount, must call Direct Energy toll-free at (866) 803-4618. Potential customers may also call that number for more information about the program.

Direct Energy encourages customers to enroll by Dec. 1, 2008, to ensure that they start the program with the January 2009 billing cycle. If consumers enroll after Dec. 1, 2008, they will be enrolled in the next billing cycle, officials said.

Those who enroll with Direct Energy’s natural gas program will continue to be billed by the local gas utility. Direct Energy’s charges will appear as a line item on the bill.

alcorn@vindy.com