LOUISVILLE, Ky. — On Sept. 8, 2016, Troy City Council unanimously approved a measure authorizing city staff to renew their electric supply agreement with First Energy Solutions on behalf of residents and small businesses at a rate of $0.0548 per kWh. The supply agreement will save an estimated average of $168 annually for eligible residents and an estimated average of $739 annually for small business when compared to utility rates. Overall, the city of Troy’s eligible residents and small businesses are expected to save $3.3 million over the course of the three-year agreement when compared to current utility rates. The new contract will begin in April 2017, upon expiration of the previous agreement that was entered into in February 2014.
The current contract with FirstEnergy Solutions was a three-year contract all-in fixed price contract at a rate of $0.0526 per kWh and has yielded an estimated savings of $2,755,971.
Troy was able to achieve the savings through a government aggregation program approved by the voters in November 2011. Government aggregation allows counties and municipalities behind investor owned utilities, such as Dayton Power & Light, to form an aggregated buying group to help residents and small businesses achieve a level of savings that they would not be able to achieve individually through the purchasing of electric power generation from companies other than Dayton Power & Light utility.
Along with Schneider Electric, the city of Troy worked through the application process to become a government aggregator with the Public Utilities Commission of OH (PUCO). Troy is currently working to complete the renewal of this certification. This process will be completed by the end of February.
Last summer, Schneider Electric solicited bids on behalf of the city of Troy and from various suppliers who are certified by the PUCO and who have experience with government aggregation programs. The bid responses were analyzed and a recommendation was made to the city council.
On July 8, 2016, it was concluded that once again FirstEnergy Solutions submitted the most competitive bid. The bid was for an all-in fixed price of $0.0548 per kWh. The agreement with FirstEnergy Solutions also included generous provisions in regards to cancellation and termination fees. Cancellation and termination fees can run between $50 and $150 typically. For the city of Troy, there will be no cancellation fees. Residents will still have the abilty to participate in budget billing.
New residents and small businesses to the government aggregation program should start to see savings on their April or May utility bill. Customers will not see a change in service from Dayton Power & Light. Dayton Power & Light will continue to be the utility responsible for making sure the power is delivered and addressing any service problems or power outages. Customers will still only receive one bill per month from Dayton Power & Light. This bill will include the charges from FirstEnergy Solutions for generation supply instead of from Dayton Power & Light.
In the coming weeks, eligible residents and businesses will receive a letter from First Energy Solutions offering them the opportunity to “opt-out” of the aggregation program. Residents and businesses will have 21 days to respond if they wish to opt-out. If a customer is participating or wishes to participate, they will not be required to respond and will automatically be included. Additionally, on a quarterly basis, FirstEnergy Solutions will go through this same 21 day opt-out with newly eligible accounts.
Eligible accounts include:
• Accounts not currently in a supply agreement with another Certified Retail Electric Supplier
• Accounts with annual load of less than 700,000 kWh
• Accounts not currently served under Dayton Power & Light’s PIPP program
• Accounts that are not lighting accounts or recognized national accounts.
As the current provider, FirstEnergy Solutions has significant experience with running and managing the Troy government aggregation program. Therefore, if you are currently partipicating in this program you will see no change in service or how you are billed. However, if you have any questions FirstEnergy Solutions will still be able to assist you, call (866) 636-3749.
If you have specific questions about Troy’s aggregation plan, contact Thomas Funderburg, assistant service director by calling (937) 339-7639. For general information about aggregation, call the PUCO consumer call center at (800) 686-PUCO (7826). For more information about Schneider Electric’s procurement expertise, visit www. www.schneider-electric.com/us.