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Wapak’s natural gas aggregate price set for ’11-’12 winter

October 18, 2011

Wapakoneta Safety-Service Director Bill Rains

Peddlers of natural gas deals should not be tolerated, a city administrator says.
Wapakoneta Safety-Service Director Bill Rains informed Wapakoneta City Council members at their meeting Monday that Police Chief Russ Hunlock did not issue any permits for door-to-door salesmen to offer natural gas contracts.
“They tend to get real aggressive,” Rains said, “and we still offer our natural gas aggregation program which is very affordable.”
City administrators recently signed a 6-month deal at $5.924 per cubic foot of natural gas. The contract is in effect from Nov. 1 through April 30, so city residents can still enter the city’s program.
“This is a 5 percent decrease from last year’s price,” Rains said of natural gas provided by Direct Energy.
The city is locked into that price so if natural gas prices increase during the winter, then residents involved in the program are not affected. If the price drops, Direct Energy has reopened the contract for a lower price.
The program is developed on the basis that city administrators should be able to negotiate a price for natural gas with a provider at a lower cost because it is negotiating for a larger customer base. By having greater negotiating power and a possible lower cost per unit, any savings would be passed onto the consumer.
Under the program, residents must inform the city if they intend to opt-out of the program or maintain month-to-month service with their natural gas provider. A resident may start with the city’s natural gas provider and then switch back to their previous provider but they will be assessed a fee by the city.
Residents can opt-out without being charged a fee during a specific period during the calendar year. Those dates are set by the city.

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