FirstEnergy pitches aggregation renewal to city
Kilowatt per hour rates would remain fixed for four years
MEDINA – A representative from power provider FirstEnergy Corp. in Akron approached Medina City Council June 26 with the opportunity to renew the city’s contract for electric aggregation.
The current agreement between city and FirstEnergy, approved in 2010, is set to expire at the end of 2018. Ben Rich, of FirstEnergy, told council the cost of power, as well as fuel, is currently at “historic lows” and the provider is starting to reach out to the 400-some communities it serves, one of which is Medina, to begin the renewal process a bit early.
“You’re looking at a half-million in savings (annually),” Rich said. “Now what we’re offering is a fixed-price contract. It will remain level through that.”
Residents enrolled in the aggregation program currently pay a little over 6 cents per kilowatt hour. Rich said FirstEnergy can lower that to about 4.79 cents per kilowatt hour should the city enter into a new contract, a four-year commitment where prices would remain the same.
“If we sign this now, the four years doesn’t begin until the end of the old contract,” Mayor Dennis Hanwell said.
Close to 7,000 city households are currently enrolled in the program and 720 businesses.
Medina Service Director Nino Piccoli estimated residents saved about $280 annually per 10,000 kilowatt hours used. Enrolled businesses saved about $528 annually, he said.
Piccoli said elderly residents, especially, have benefited from the aggregation program due to solicitors from non-FirstEnergy providers calling residents encouraging them to switch services.
“Some of the elderly folks get confused. There’s phone calls that come ... all the citizens get them,” Piccoli said.
Council, which was relatively in favor of renewing, made no action on the FirstEnergy proposal in order to give it further consideration.
The board next meets Monday, July 10, where it will likely give the proposal another discussion. Council will be on summer break until late August after the July 10 meeting.
The current agreement between city and FirstEnergy, approved in 2010, is set to expire at the end of 2018. Ben Rich, of FirstEnergy, told council the cost of power, as well as fuel, is currently at “historic lows” and the provider is starting to reach out to the 400-some communities it serves, one of which is Medina, to begin the renewal process a bit early.
“You’re looking at a half-million in savings (annually),” Rich said. “Now what we’re offering is a fixed-price contract. It will remain level through that.”
Residents enrolled in the aggregation program currently pay a little over 6 cents per kilowatt hour. Rich said FirstEnergy can lower that to about 4.79 cents per kilowatt hour should the city enter into a new contract, a four-year commitment where prices would remain the same.
“If we sign this now, the four years doesn’t begin until the end of the old contract,” Mayor Dennis Hanwell said.
Close to 7,000 city households are currently enrolled in the program and 720 businesses.
Medina Service Director Nino Piccoli estimated residents saved about $280 annually per 10,000 kilowatt hours used. Enrolled businesses saved about $528 annually, he said.
Piccoli said elderly residents, especially, have benefited from the aggregation program due to solicitors from non-FirstEnergy providers calling residents encouraging them to switch services.
“Some of the elderly folks get confused. There’s phone calls that come ... all the citizens get them,” Piccoli said.
Council, which was relatively in favor of renewing, made no action on the FirstEnergy proposal in order to give it further consideration.
The board next meets Monday, July 10, where it will likely give the proposal another discussion. Council will be on summer break until late August after the July 10 meeting.
