The company is providing discounts through a residential government aggregation contract signed on April 16, 2009.
Customers would have been charged if they weren’t participating in the governmental aggregation program. Generation supply and pricing for Ohio Edison customers who choose not to shop with an alternative supplier will be based on the results of a competitive bidding process (CBP) that will be conducted for FirstEnergy’s regulated Ohio utility companies – Ohio Edison, The Illuminating Company and Toledo Edison. The CBP will secure generation supply and determine generation prices through May 31, 2011.
Discounts will be effective beginning with residents’ August 2009 electric bills, depending on when customers’ meters are read. The discount will drop to 6% in 2010, 5% in 2011 and 4% through the end of the contract in May 2012. Participating commercial customer discounts will begin at 7% and drop to 3.5% in 2010 and 2011 and 2.5% in 2012.
Generation discounts beyond May 31, 2011, will be based on the yet-to-be-established generation price at that time.
Under Ohio law, communities are able to form aggregated buying groups to purchase electricity, natural gas, or both on behalf of their citizens. The governmental aggregator chooses an alternate 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 generation rate for electricity offered by their utility.
Ohio Edison will continue to deliver the electricity, read meters, send monthly billing statements and maintain service for Barberton residents. Residents should continue to contact Ohio Edison with questions about their service or to report a power outage.
“This agreement is clearly in the best interests of Barberton residents,” said Barberton Mayor Bob Genet. “Given the economic downturn, the discounts secured in this contract will benefit our residents and businesses for years.”
“We are pleased to serve the City of Barberton with our first residential government aggregation contract secured under Ohio’s new energy law,” said Donald R. Schneider, president of FirstEnergy Solutions. “Our first government aggregation contract was with Barberton in 2001, and we’re proud that they’re first this time, as well.”