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People who heat their homes with natural gas may not have a fixed-price option from Central Hudson Gas & Electric Corp. this season and definitely won't have it next season.
The state Public Service Commission ruled Wednesday in favor of the Small Customer Marketer Coalition's petition calling for an end to Central Hudson's fixed-price choice. While few of these companies have offered fixed-price plans before, several have expressed interest and one has committed, Central Hudson said.
Customers have surged into that option in the last couple of years as prices for natural gas have jumped. More than 14 percent, or 9,200 customers, chose it last fall, but the majority of gas users still stick with the company's variable price deal, which rises and falls with the market price.
The plan allows customers to lock in a rate for gas, regardless of market prices.
The commission, which has a policy of promoting competition by these marketers as part of deregulation, directed Central Hudson to cease offering its fixed-price gas supply option no later than the 2006-07 heating season. It will be allowed for the 2005-06 heating season, but only if other ratepayers do not subsidize it.
There are some conditions, but the details have not been disclosed, commission spokesman David Flanagan said. He said the panel typically makes public its full ruling a day or two after its vote.
Central Hudson spokesman John Maserjian said, "We are encouraged that we have the option to offer the program this fall; however, we are waiting to see the order before making a decision on whether we will actually be making the program available."
About 1 percent of residential gas customers had actually shifted over to the independent suppliers as of February.
Angel Caraballo, who owns Fabricare Industries in Wappingers Falls, said the apparent intent of the ruling seemed fair.
"I think an even playing field is probably the best way around," he said.
But he said it can be time-consuming to compare deals and he has decided to just stay with Central Hudson.
"We really don't have the time to spend," Caraballo said, citing "the effort in reading up and figuring out the savings compared to the possible aggravations."
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