FirstEnergy Solutions (FES), a subsidiary of FirstEnergy Corp. (NYSE: FE), will provide discounted generation prices to residential and small commercial customers in 24 Ohio communities through governmental aggregation contracts.

Under the contracts, approximately 195,000 residential customers and 21,000 commercial customers will receive discounts off the generation component of their bills. The communities are Alliance, Aurora, Barberton, Boardman Township, Burton Township, Canal Fulton, Cortland, Defiance, Doylestown, Euclid, Green, Marion, Munroe Falls, Navarre, Ottawa Hills, Parma, Ravenna, Sandusky, Seven Hills, Silver Lake, Stow, Tallmadge, Troy Township and Trumbull County.

The governmental aggregator may choose between two agreements - a graduated or a flat percentage discount. The graduated discount plan offers savings of 10 percent in 2009, 6 percent in 2010, 5 percent in 2011 and 4 percent in 2012. The flat-rate percentage contract offers a 6 percent discount on generation prices through the end of the contract. Small commercial customers in these communities will enjoy a smaller graduated or flat-rate discount, as well, depending on the contract.

"We are pleased to provide these customers with competitively priced electric generation service from a local company," said Donald R. Schneider, president of FirstEnergy Solutions. "We are continuing to meet with communities, consistent with our retail strategy, and have additional agreements pending. Communities interested in providing similar discounts to their residents and small businesses should contact us before May 12, our deadline for current aggregation contracts."

Discounts will be based on the generation price customers would have been charged if they purchased electric generation service from their electric utility and did not switch to service from an alternate supplier. The electric utility prices will be established based on the outcome of a competitive bidding process (CBP) that will be conducted for Ohio Edison, Toledo Edison and The Illuminating Company. The CBP will secure generation supply and determine pricing for the period of June 1, 2009, through May 31, 2011. Generation discounts beyond that period will be based on the yet-to-be established generation price.

Under Ohio law, communities are able to form governmental aggregation buying groups to arrange for electricity, natural gas, or both on behalf of their citizens. The governmental aggregator chooses a supplier for all of the members in its group. Customers may opt out of the aggregation program and shop for a supplier or accept the standard rate offered by their utility.

Discounts under the contracts will be effective beginning in late summer or early fall, depending on when customers' meters are read. Ohio Edison, Toledo Edison or The Illuminating Company will continue to deliver the electricity, read meters, send monthly billing statements and maintain service for residents covered by the governmental aggregation contracts. Residents should continue to contact their utility company with questions about their service or to report a power outage.

Source: FirstEngery Corp.

May 7, 2009 / category: Electric / link / comments (0)

Categories:

Leave a comment

Sponsors