Program Gives Customers Long-Term Electric Generation Savings
AKRON, Ohio, Sept. 16 /PRNewswire-FirstCall/ -- Powering Our Communities, an innovative program from FirstEnergy Solutions (FES), a subsidiary of FirstEnergy Corp. (NYSE: FE), will provide community grants of approximately $2.2 million to the City of Akron; $1 million to Summit County's nine townships and the City of New Franklin; $300,000 to the City of Barberton; and $250,000 to the City of Green. In addition, this program will provide residents and small businesses of those communities with long-term electric generation savings.
"The funding available through Powering Our Communities is designed to help local communities during this difficult recession," said Anthony J. Alexander, president and chief executive officer of FirstEnergy Corp., during a press conference at the company's West Akron Campus today. "The funding can be used by city and township officials to help pay for many things, including essential services such as police and fire protection that have been affected by budget cuts. At the same time, Powering Our Communities offers long-term discounted generation prices to residential and small commercial customers in these communities."
Powering Our Communities offers economic support to communities in the Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison service areas that purchase discounted electric generation supply from FES through government aggregation programs.
The discounts will be based on the Price to Compare, or the generation price customers would have been charged if they purchased electric generation service from their local electric utility. Eligible Akron; Summit County; Barberton; and Green residential customers will receive 6 percent off the Price to Compare and small businesses will get a 4 percent discount for an additional six years. These communities already had government aggregation programs with FES as the electric generation supplier until 2012.
"FirstEnergy Solutions' offer comes at a crucial time for Akron," said Mayor Don Plusquellic. "We have been struggling to maintain police and fire jobs in the face of budget cuts and this funding definitely helps as we find ways to maintain essential services. Plus, by extending our contract with FirstEnergy Solutions for six more years, Akron customers could save millions in electric generation costs."
"Summit County communities in government aggregation programs will each receive a portion of the $1 million we are receiving from FirstEnergy Solutions, based on the size of the community," said Russell Pry, Summit County Executive. "Each community can determine how to best use this money to meet its specific needs. With lean budgets and the lingering recession, this is a big boost to our communities."
"We are pleased to be able to bring these savings to our residents," said Barberton Mayor Bob Genet. "In addition, the funding will also help our community during this economic downturn. This is a very good partnership between a local company, FirstEnergy Solutions, and Barberton."
"The City of Green will make good use of the funds, helping to make our community an even better place to live and work," said Mayor Dick Norton. "And, I know residents will appreciate the fact that they will save money on their electric bill for many years to come."
Powering Our Communities is being offered to the 50 communities in Ohio with government aggregation programs where electric generation is currently supplied by FES. Communities with government aggregation issues on the November ballot would also be eligible, as well as communities where residents have already approved electric aggregation. The program could save participating communities millions of dollars on generation costs over the next several years.
The level of funding to each community will be based on the number of customers who participate in the government aggregation program. No community will receive less than $50,000 in community grants.
Communities are able to form government aggregation buying groups to arrange for electricity, natural gas, or both on behalf of their citizens. The government aggregator chooses a 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 rate offered by their local utility.
"We are pleased that Akron, Summit County, Barberton and Green are the first communities to take advantage of this offer," said Alexander. "After all, FES employees live and work here, too, and we recognize that strong communities benefit everyone."
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