Natural gas price could rise for city residents

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by Andre Clayton

Reporter

Twinsburg -- The company that tries to find cheap natural gas for the city's aggregation program says it will try to get local customers as good a rate this winter as last year's, but it may be tough.

"The market is high," said Tom Bellish, Buckeye Energy Brokers president. "We did well to lock in a fixed rate last year for the city."

The Twinsburg-based company was hired a few years ago to find the best price for natural gas for the city's aggregation, or group-buying, program. Last year, Buckeye got a fixed rate of $9.35 Mcf (per 1,000 cubic feet of gas) from the gas supplier Vectren Source from November 2007 to October 2008.

But this year, Bellish said, the rate is expected to be higher for many reasons, including natural gas' relationship to other fuels.

"The price of crude oil has shot up, there is more global demand for oil and it is more expensive to find the supply," Bellish said, adding that heating oil, which derives from crude oil, is a competitor of natural gas, so its increase in price affects natural gas prices, Bellish said.

Council is considering legislation to hire Buckeye to negotiate the winter rate. Council will then decide whether to go with the rate the company recommended or have it search for another rate, Mayor Katherine Procop said.

Council President Bob McDermott said he is confident Buckeye will find a reasonable rate for the city.

"They did a great job last year," McDermott said.

"We may see a pull back in price in the summer," Bellish said, noting 4,600 members are currently enrolled in the program citywide.

Aggregation allows the city to negotiate gas prices on behalf of all residents who choose to be included. For details on the program, call 866-200-4793.

E-mail: aclayton@recordpub.com

Phone: 330-688-0088 ext. 3172