You may have or will soon be receiving a letter from First Energy Solutions offering a competing rate to the existing electric aggregation price offered by Dynegy through the City’s program. The letter references a rate of 4.69 cents per kilowatt-hour for a 12-month period and compares it to a rate of 4.79 cents offered through the City.
First and foremost, participation in the City’s aggregation program is entirely voluntary and can be opted out of at any time. Should you determine the lower rate offered through this or any other program is worth it for your account, you are free to do so. Things to consider when making that decision:
The rate provided by Dynegy through the City’s aggregation program is fixed for a period of 36-months. The rate offered by First Energy is only fixed for 12 months, leaving you to find another deal upon completion of the term. Energy markets are volatile, with no guarantee of what that rate will look like in months 13-36.
The rate is listed on the offer sheet in whole numbers to exaggerate the difference between the advertised rate and the City’s current aggregation rate. The true difference is $0.001 per kilowatt-hour. The average residential customer uses 11,000 kilowatt-hours in a year, which would equate to an annual savings of $11.00 for the first year, with unknowns in years 2 and 3.
First Energy Solutions submitted a proposal to the City to be the aggregation provider when the City solicited proposals last fall. With all variables for each vendor being equal, First Energy Solutions’ proposed rate was $0.0488 per kWh compared to Dynegy at $0.0479.
At any point in time, if you would like to shop available deals from First Energy Solutions or all other providers, the State has established an excellent tool for doing so. Follow the link by clicking here.
Under the residential option, be sure to choose Ohio Edison as your supplier. When researching rates, be sure to also check term and termination fees.
The City provides access to the aggregation program to provide access to a competitive rate without the need to shop further. However, you are always free to switch providers should you wish to do so.