NOPEC Does it Again - NOT!

[Grace O'Malley]

Check your mail for your Opt-Out card for Nopec's natrual gas aggregation. It must be returned by April 10 or you are automatically included in the contract.

Nopec negotiated a deal with Dominion for gas at 9.70 mcf until October, at which point it will be reset for an undetermined winter rate.

The next day, we read in the PD that COSE, with a much smaller member base, negotiated a rate of 9.40 mcf with the same supplier!

Today's PD says we are in the middle of a gas war, and suppliers like ISG are offering rates of 8.73. With an anticpated oversupply, rates may go lower.

Way to go, NOPEC.

http://www.cleveland.com/business/plaindealer/index.ssf?/base/business/1143279597124850.xml&coll=2

[Mark Timieski]

I can't seem to find any useful information on Nopec web site, but it looks like Lakewood joined up with the program back in 2002 (from council meeting minutes).

http://www.nopecinfo.org/index.html
http://www.lkwdpl.org/city/cc/mt020903.htm


I'm under the impression that this should effect only people that are already in the Nopec program or are still trying to remain as customers of Dominion East Ohio Gas.

Does this effect people that are in the 'energy choice' program?

http://www.puco.ohio.gov/Puco/ApplesToA ... doc_id=601

I have some real problems with the way the 'opt-out' provision works (a customer taken into contract without giving expressed permission). In my mind the Nopec program is the gas equivalent of phone 'slamming'.

http://www.fcc.gov/slamming/

[Mark Timieski]

I just got a package from NOPEC.

It starts:
“NOPEC is a public buying group authorized by voters who approved municipal opt-out aggregation in 128 Northeast Ohio communities, including yoursâ€￾.

When did we vote on this? My memory is not so good but I don’t ever remember seeing this at the ballot box.

The information in the package was pretty vague, and talking to a NOPEC representative on the phone didn’t help. They don’t know what rate they will be offering after July, only that you will be stuck with them for two years.

They offer a second program for 0.31% of their customers (good luck on getting in on this deal). The plan says that it will guarantee a rate less than Dominion East Ohio Standard service. From the information, the rate that NOPEC offers is currently one and a half cents less per MCF than the Dominion Standard service. I can only think this could make a difference on a bill if it was for something like a large municipal airport. The NOPEC representative told me that if you weren’t eligible for this program, you would be automatically enrolled in the other “rate to be determinedâ€￾ program.

Digging around for more information on NOPEC paints it as a perennial loser:
http://www.callahansclevelanddiary.com/?p=204
http://www.callahansclevelanddiary.com/?p=191

[Bryan Schwegler]

NOPEC was voted on years ago, I want to say 7 or 8 years ago?

[John Viglianco]

NOPEC was created in early 2001 to aggregate the ELECTRICAL rates. They chose GREEN MOUNTAIN to provide lower electrical rates. GREEN MOUNTAIN was only supposed to use power from "renewable resources". Everything about GREEN MOUNTAIN - including their discounts-- turned out to be a sham.

If we apply to be in the "chosen few" category for the GAS selection, do we get lumped into the standard NOPEC group when the DESIRABLE option is filled?

[Mark Timieski]

If the DESIRABLE slots are full you get lumped into the standard NOPEC plan (with the details of the standard plan revealed once you are enrolled into the long term contract). They were not able to tell me how many people had already signed up for the DESIREABLE plan.

I’m being sarcastic here with DESIREABLE, so don’t get any wrong ideas.

Yes, it looks like we voted for this monster, back on May 7th of 2002 (Issue 34). Yikes.

[John Viglianco]

My gas rate through NOPEC just jumped from $9.99/mcf to $12.48/mcf. I called NOPEC to ask why. Their website said that the FIXED rate was $9.99 though June.

The woman told me that I was in this SPECIAL 0.31% of their customers that received the VARIABLE RATE less than Dominion East Ohio Standard service.

Gee, if I won the lottery why do I feel like I actually lost?

[Grace O'Malley]

A recent study showed that customers who stayed with East Ohio/Dominion have actually paid LOWER rates overall than those who switched to NOPEC.

I was right. All along I said it was a joke and now its proven to be.

I'll post the link to the study when I find it again.

[Bryan Schwegler]

I'd like to see that study since Dominion just raised their rates to about $16.50 /mcf for June while NOPEC's fixed rate is still 9.99.

[Mark Timieski]

In June the heat is off. I’m not using much gas. The question is what rate will NOPEC have in November? This is much like a horse race; we won’t know who wins until after the race is over. In past races NOPEC has come in the back of the pack.

I was planning on calling NOPEC again to see if I could get an idea what their future rates are going to be. I’m under the impression that the current fixed rate is ending.

[Grace O'Malley]

I recall the study showed that over the years NOPEC has been in existence, the consumer who stayed with EOG payed a lower total cost for gas than the NOPEC consumer.

I had it bookmarked but changed browsers and lost my bookmarks.

Bryan, I think you are internet savvy, if you are truly interested, you can probably find it using a search engine.

[Bryan Schwegler]

Bryan, I think you are internet savvy, if you are truly interested, you can probably find it using a search engine.

I am Grace. I've just never felt it was my place to back up someone else's claims with proof.

[Bryan Schwegler]

In June the heat is off. I’m not using much gas. The question is what rate will NOPEC have in November? This is much like a horse race; we won’t know who wins until after the race is over. In past races NOPEC has come in the back of the pack.

I was planning on calling NOPEC again to see if I could get an idea what their future rates are going to be. I’m under the impression that the current fixed rate is ending.

You're right Mark, most don't use a lot of gas in June. However, having paid Dominions rate all Winter, I can tell you it was still significantly higher than 9.99 per MCF.

[Tim Liston]

Don't look now but....

The price of natural gas has skyrocketed over the course of 2008.

Last fall, MxEnergy offered a monthly variable rate contract at $7.45/Mcf. Now the same contract is at $13.57. That's an 82% increase. Their annual fixed rate contract was $9.49/Mcf. Now it's at $15.99, a 68% increase. And we're not even going into the heating season, when prices typically are higher.

By the way those prices don't include tax, delivery, etc. Just the gas. Current plans and rates can be found here: http://www.puco.ohio.gov/PUCO/ApplesToA ... fm?id=4810

I don't know the first thing about NOPEC, I have never trusted them. Instead I have always locked in prices where I could. But I can tell you that unless prices drop substantially over the next few months, which I find unlikely, heating our homes next winter is going to be VERY costly.

Even though oil prices have dropped a few percentage points over the last few days, natural gas has not, it's still at record highs. Part of the problem is that a lot of natural gas is used to generate electricity out west.

[Mark Timieski]

I talked to a NOPEC representative. The current rate of $9.95+transportation+sales tax ends in July. The representative said that they had been locking in contracts for long periods (like a year at a time), but the volatility of the market (i.e. gas prices would drop after the rate was locked) was making customers “irateâ€￾. NOPEC has been entering into shorter contracts since then, usually four moths at a time. They expect rates to increase in July, but negotiations are in process and future prices are unknown at this time.

When you calculate the difference between the Dominion East Ohio (DOE) “non-choiceâ€￾ program and the “Choiceâ€￾ program, it’s important to take into consideration transportation charges, and the delta between the Cuyahoga County sales tax and the gross receipts tax (GRT). For example if you were a DOE customer, you paid less for gas than if you had locked in the $9.99/MCF rate.

If we back out the transportation charge and adjust for the discrepancy between the ways the two programs are taxed, the DOE rate is was actually pretty good. So Bryan, if you were with DOE this past winter, you actually beat the odds.

Here are the adjusted DOE rates (compare this to the rates you were charged in the “Choiceâ€￾ program):

October 2007 $7.64/MCF
November 2007 $8.46/MCF
December 2007 $8.40/MCF
January 2008 $8.40/MCF
February 2008 $9.17/MCF
March 2008 $10.07/MCF
April 2008 $10.07/MCF

I spent a good part of the winter huddled in the cold trying to figure this out. I have developed a detailed spreadsheet that compares rates from various “Choiceâ€￾ programs. There are some fairly lengthy calculations involved, and the DOE rates I have listed above only work for Cuyahoga residents.

I believe NOPEC is a for profit company, likewise they currently purchase gas from DOE energy (also a for profit company). DOE is not legally able to make a profit at selling gas, only in the transportation of the gas (which you pay no matter which program you use). In my mind it’s difficult for me to see how two levels of middlemen will be able to sell a product for less than what is offered direct.