Campbell residents get chance at group rate for natural gas

STAFF REPORT

CAMPBELL — The city has signed a two-year agreement with Direct Energy to supply natural gas to the city’s residents and small businesses at the fixed rate of $9.234 per 1,000 cubic feet for the first 12 months.

The rate will go into effect in December and covers the January 2009 through December 2009 bill cycles. The rate excludes taxes and fees for services provided by the utility. The program also includes an additional discount of $0.10 per Mcf (1,000 cubic feet) off the initial commodity price for senior citizens age 65 and older who are the primary owners of their residence.

The rate will be renegotiated for the second year of the contract and will be based on the cost of natural gas at the time, said Mayor John Dill.

“We are pleased that through Direct Energy, we were able to lock in a fixed and stable rate for the residents and small businesses of our community,” the mayor said. “There is no obligation for residents to tie into the plan, but if they do and can get a better price elsewhere, they can opt out. It’s a great, great thing for our community.”

Consumers now being served by the utility or another competitive supplier who wish to switch their services are eligible to participate in this exclusive offer by “Opting-In” to the program. Consumers wishing to “Opt-In” or senior citizens requesting the discount must call Direct Energy directly at (866) 803-4618.

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

Residents and small businesses who live in incorporated areas in Campbell will receive information via mail describing the program the first week of November. Consumers 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.