OKLAHOMA CITY – Sept. 4, 2007 -- Oklahoma Natural Gas Company customers will have the option of locking in the per-unit price of the natural gas they use this winter at $8.889 per Dekatherm, the company announced today. That price will be offered to customers who choose to enroll in Oklahoma Natural's Voluntary Fixed-Price Plan. The price will be effective for the 12-month period that begins Nov.1.
"The Voluntary Fixed-Price plan is a 'customer choice' option that's designed to help consumers stabilize their fuel costs and manage their natural gas bills," said Ron Brown, vice president of administration. "While participation in the plan does not guarantee savings, it does reduce the volatility of natural gas prices on customers' bills." Customers who participate will continue to pay the normal delivery charges, and their bills will still vary according to how much gas they use. "But in this plan, the cost of the gas itself will not change. You will know that for every Dekatherm you use, the gas cost portion of your bill will be $8.889," Brown said. (A Dekatherm is the approximate amount of energy contained in 1,000 cubic feet of natural gas.)
Oklahoma Natural Gas Company purchases gas supplies for its customers through a competitive bidding process that includes both fixed-price contracts and contracts that are tied to market indices. Customers pay the company's average cost of gas, which varies from month to month. However, customers who enroll in the Voluntary Fixed-Price Plan are purchasing exclusively from fixed-price gas and gas in storage, for which there is already a known price.
Brown stressed that customers who participate in the Voluntary Fixed-Price Plan may pay more or less over a 12-month period than customers who continue to pay the company's average price of gas. (Oklahoma Natural Gas realizes no profit on the sale of gas; the company earns a return through regulated charges associated with delivering the gas.)
The Voluntary Fixed-Price Plan was developed in 2002 as a collaborative response by Oklahoma Natural Gas Company and the Oklahoma Corporation Commission to volatility in natural gas prices.
Enrollment in the Voluntary Fixed-Price Plan, which is open to residential and small commercial customers (those using 150 Dekatherms or less annually), will continue through Oct. 19. Oklahoma Natural Gas Company customers will receive more information about the plan and an enrollment form in their September bills. Customers may also enroll by calling 800-208-7267 or online at www.oklahomanaturalgas.com.
Oklahoma Natural Gas provides natural gas service to more than 800 thousand customers in the state of Oklahoma. It is a division of ONEOK, Inc. (NYSE: OKE), a diversified energy company. ONEOK is the general partner and owns 45.7 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded limited partnerships, which is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nation's premier natural gas liquids (NGL) systems, connecting much of the natural gas and NGL supply in the Mid-Continent with key market centers. ONEOK is among the largest natural gas distributors in the United States, serving more than 2 million customers in Oklahoma, Kansas and Texas. Its energy services operation focuses primarily on marketing natural gas and related services throughout the U.S. ONEOK is a Fortune 500 company.
For more information, visit the Web sites at www.oklahomanaturalgas.com or www.oneok.com.