CINCINNATI–(BUSINESS WIRE)–The City of Cincinnati has selected Constellation, a subsidiary of Exelon Corporation and a longtime competitive energy supplier in Ohio, to provide monthly variable-rate natural gas supply to more than 69,000 Cincinnati residents and small businesses. Constellation was selected following a competitive bidding process under the state’s natural gas choice governmental aggregation program.
Under the terms of the agreement, the program’s monthly variable rate is based on the New York Mercantile Exchange price for natural gas plus a fixed charge of $0.1163 per one hundred cubic feet (Ccf). Residents will be charged a $0.65 administration fee per month. At points during the 24-month agreement, if the city determines market conditions are favorable, the program rate may be converted to a fixed rate.
“The natural gas aggregation program offers residents an easy option to manage and limit their energy costs for at least the next two years,” said City Manager Harry Black. “This is a good deal for the city and a great opportunity for our residents.”
Natural gas supply under the new agreement is scheduled to begin with October 2015 meter reads and continue through September 2017.
“This agreement allows Cincinnati customers to take advantage of the competitive prices we’ve been seeing in the natural gas market while giving the city the option to lock in a fixed rate at a later date,” said Bruce Stewart, senior vice president and chief marketing officer for Constellation. “As a national energy leader with deep roots in serving Ohio residential as well as commercial, industrial and governmental customers, we look forward to serving Cincinnati residents and small businesses.”
Additionally, residents age 65 or older who participate in the aggregation program may opt to receive a discount of $0.01 per Ccf off the monthly variable rate or any applicable fixed rate by contacting Constellation.
Constellation will work with the City of Cincinnati to notify all eligible customers of the new natural gas supply variable rate, terms and conditions. Residential and small commercial retail customers will have the right to opt out of the aggregation program without penalty.
Eligible residents will receive more information in the mail. Customers who do not opt out, but later choose to leave the program, can do so at any time within the two-year term without penalty.
Other than the price and supplier, residents who participate in the program will experience no change in their natural gas service and will continue to receive one monthly bill from Duke Energy – Ohio, the utility responsible for delivering natural gas to customers’ homes and maintaining the system.
The City of Cincinnati reminds residents that no one from the city will come to their home to ask them to join the aggregation program.
To learn more, Cincinnati residents can contact Constellation toll-free at (844) 830-3336 or online at www.constellation.com/oh-cincinnati. Constellation customer service representatives are available 24 hours a day, seven days a week.
This offer sold by Constellation Energy Services – Natural Gas, LLC., an independent natural gas supplier licensed by the Public Utilities Commission of Ohio, license number 10-186G(3). Constellation’s price does not include any taxes, utility distribution charges or other utility fees, charges or credits, and is subject to the terms of the agreements with the City and the participants.
About Constellation
Constellation is a leading competitive retail supplier of power, natural gas and energy products and services for homes and businesses across the continental United States. Constellation’s family of retail businesses serves more than 2.5 million residential, public sector and business customers, including more than two-thirds of the Fortune 100. Baltimore-based Constellation is a subsidiary of Exelon Corporation (NYSE: EXC), the nation’s leading competitive energy provider, with 2014 revenues of approximately $27.4 billion, and more than 32,000 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. Learn more at www.constellation.com or on Twitter at @ConstellationEG.