MXenergy Introduces Fixed Price Gas Program to NIPSCO Customers

Stamford, CT, October 15, 2002 – Until recently, residential and commercial consumers of natural gas purchased all of their fuel for home heating and other purposes from NIPSCO, the local utility.

Today they have a new alternative:  MxEnergy Inc. of Stamford, CT, one of a handful of nationwide energy marketers.

MXenergy is offering customers Guaranteed Fixed Price Gas for one and two year terms.  The initial price for one year will be $5.27/Mcf.

MXenergy currently serves over 125,000 customers in six other states and ten other utility territories.  NIPSCO is the largest utility in Indiana, serving over 600,000 customers with gas and electric service.

Under the MXenergy program, NIPSCO will continue to supply customers with gas as well as read their meters and send their bills.  MXenergy will procure the gas itself and deliver it to NIPSCO which then will transport it through local pipelines to the consumer’s burnertip.

“Our Guaranteed Fixed Price Program protects customers from any price increases over the next year or two,” said Jeffrey Mayer, president of MXenergy.  “Even if prices continue to go up this winter, our customers will continue to receive gas at a price of $5.29 per thousand cubic feet,” he added.

According to Mr. Mayer, during the winter of 2000-2001, prices in the midwest and northeast reached $10/Mcf while MXenergy supplied its customers with fixed price gas at a price of between $3 and $4/Mcf. 

Emmett Capanna, MXenergy’s senior vice president of supply and marketing, said that the company purchases its gas in advance.  “We buy our gas for one or two years forward in order to protect ourselves and our customers from higher market prices.  And we store gas close to our customers so that we are prepared in the worst market conditions to keep the gas flowing,” he said. 

Prices of natural gas have been increasing since February 2002, when they hit a two year low.  Some analysts have attributed recent price increases to a variety of factors, including fears of war with Iraq, lower production brought on by the low prices of last year, and increased industrial demand.

Mr. Mayer explained that if customers believe prices may be ready to go down, they can still buy from MXenergy.  “We offer customers what we call the 'You Choose When Option,'” he said.  “Customers can buy gas on a variable price basis, in which case we set a new price every month.  But if at any time they become concerned with the potential for higher prices, they can call us and lock in their price for the next year at our then current market price."

According to Greg Taffet, MXenergy’s Chief Information Officer,  “Customers can obtain the very latest price information by calling our Maryland office or by logging on to our site, www.mxenergy.com. The company maintains a customer service center in Annapolis Junction, Maryland, where live customer service representatives work with customers to help them understand their bills and their supply options.  

“Heating oil customers have enjoyed fixed price protection for years.  Now we can offer natural gas customers the same comfort,” he said.