In order to comply with the New York State Public Service Commission’s policy to encourage residents and business owners to fully investigate their energy supply options and rely upon the competitive marketplace to offer special pricing and supply programs, Central Hudson Gas & Electric will end its voluntary Fixed Price Option for natural gas customers when the current program expires on October 31, 2005. The utility will instead encourage independent energy service companies that provide natural gas supply in the region to offer their own fixed price programs.

“This decision was made in recognition of the increased interest natural gas marketers have shown in offering a fixed price program for Central Hudson customers,” said Carl E. Meyer, President and Chief Operating Officer of Central Hudson.

Under deregulation, supply costs normally vary with market conditions. The voluntary Fixed Price Option, formerly offered by Central Hudson from 1997 to 2005, locked in the supply cost of natural gas for participating customers. Delivery costs, which are fixed and regulated, are in addition to supply costs. The Fixed Price Option was not necessarily the least-cost option, but the program was designed for those who wished to protect against variations in natural gas supply prices.

“When Central Hudson first offered the program in 1997, the competitive supply market was new, and pricing and supply options were not yet available to our customers,” noted Meyer. “Our program was intended to offer this pricing option until the competitive markets became more fully developed. After consulting with energy service companies, several have recently expressed an interest in providing a fixed price option this year.”

Central Hudson will be filing details on an outreach and communications plan with the Public Service Commission later this month that will inform its natural gas customers of their supply options. This plan will include at least two seminars, open to the public, and an informational mailing to all natural gas customers. The outreach and communications plan will be conducted this fall.