Reynoldsburg News

Electrical aggregation

New contract promises double-digit savings


Reynoldsburg residents could see double-digit savings from a proposed new electrical aggregation contract, according to a spokesman for American Municipal Power.

Terry Leach told city council's finance committee Dec. 3 that 4,500 residents and 600 small commercial customers took advantage of the current two-year aggregation contract with First Energy Solutions. That contract will expire at the end of December.

Leach said residents were guaranteed a 5-percent savings off the American Electric Power (AEP) generation and transmission price under the terms of that contract.

"Our supplier was First Energy Solutions and I would recommend keeping them as your supplier, because we negotiated 20 percent off for residents and 25 percent off for small businesses for the next two-year contract," he said.

Leach said the typical residential customer who uses 750 kilowatts a month of electricity could save $144 in a 12-month period.

"This is also a no-risk offer, with a zero fee to join," he said. "And if you want out of the program, you can get out with no fee."

He said the program would be similar to the last aggregation deal: Residents would be notified of the program and would be signed up for it unless they opt out by responding to a letter.

"After they get the mailing, they would have 21 days to opt out of the program," Leach said.

Once AEP is notified, residents then have seven days to tell AEP they don't want to switch from AEP to First Energy Solutions, he said.

Leach said the city of Reynoldsburg would receive $10 for each resident who stays in the program and does not opt out.

Finance committee Chairman Chris Long said the city received "hundreds of phone calls" during the beginning of the last aggregation process.

Leach said the problem was that AEP contacted every resident to "persuade them not to switch suppliers." He said AEP did not give out accurate information about the program.

"For instance, they said it was a three-year program with the savings guaranteed for only 18 months, but it was actually a two-year program," he said.

Leach said AEP came to an agreement with the Public Utilities Commission of Ohio and "will not be sending any letters this time."

He said AEP's budget customers and those on payment plans or whose electric bills are overdue would likely not be on the list of residents to be offered the aggregation program.

Long said Leach should be "very specific in making it known you do not offer a budget program."

"We would make it clear the impact the aggregation program would have on a budget customer," Leach said.