How is the SCO rate determined?
Standard Choice Offer (SCO) rates are set based on a simple formula:
- Current market rate for natural gas as determined by the monthly closing price for the natural gas contract on the New York Mercantile Exchange (NYMEX).
- Plus a fixed retail price adjustment reflecting the additional cost to bring the gas to the customer. The retail price adjustment was determined in a competitive auction administered by Vectren Energy and approved by the Ohio Public Service Commission.
Since current market rates change based on supply and demand, the monthly rate charged to customers will change as well.
What is the current SCO rate?
The table below shows the current and historic rates in $/CCF (as shown on your bill). These rates apply to all deliveries during the month shown.
The rate shown on your bill will likely be the average of the published rates for the current month and the prior month, since the billing period typically covers days in more than one month.
For example, a bill issued on May 15 will cover gas deliveries from the second half of April through the first half of May. Therefore, the unit price shown on the bill will reflect both the April and May rates.