Northeast Ohio Could Realize Savings in June

NOPEC improves ability to offer lower priced electricity

Solon - Feb. 27, 2009 -- The potential for lower electric rates this year for about 600,000 customers in greater Cleveland Ohio has been increased due to the insistence of the Northeast Ohio Public Energy Council (NOPEC).

NOPEC has reached an agreement with FirstEnergy Corp. that allows for NOPEC to more competitively offer lower-cost electricity for residents and businesses.

NOPEC is the nation's largest public utility aggregation - representing 126 communities throughout nine northeast Ohio counties. Non-profit NOPEC arranges for bulk purchases of power on behalf of its member communities and then passes resulting savings along to residents.

"These were tough, complicated negotiations with FirstEnergy," said Joseph Migliorni, chairman of NOPEC's governing board. "The bottom line is we chipped away some remaining, non-competitive elements that should allow us this year to arrange for lower cost electricity supplies to pass along to our consumers in our communities."

NOPEC successfully negotiated, for example, that it be similarly allowed to "phase-in" electric rates - which means some of the price would not be charged now, but paid for at a later time. FirstEnergy was previously proposing to use such phased-in rates only for its own customers, which could have conceivably put NOPEC at a disadvantage had they not negotiated for parity on that point.

Leigh Herington, NOPEC's executive director, said lower cost electricity could be in place as early as June - when new electric generation rates are scheduled to be established in northeast Ohio.

"We are pleased that we have essentially removed anti-competitive roadblocks that will allow NOPEC to function better," Herington said. "What this all means is that we will be better positioned now to try to bring competitive electric rates at the lowest possible rate to northeast Ohio."