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Put TE Rate Reduction Offer On May Ballot?



Voters living in Archbold may be asked to cast ballots in May on a measure that could cut electricity rates by as much as 6%.

Dennis Howell, Archbold village administrator, told councilmen during the Monday night, Jan. 4, meeting that voters would have to approve First Energy Services as their energy provider, with the village acting as an “aggregator.”

If approved, First Energy Services would provide the generation portion of the electricity. Toledo Edison would continue to distribute electricity to customers.

Every two to three years, Howell said village residents could “opt out,” or decide to select some other provider for their generation portion. They could opt back in at a later date.

The agreement is a benefi t to First Energy Services, Howell said, because it will lock in First Energy as the village supplier. That will make it easier for the company to plan its own energy needs.

Percentage

Howell said village offi- cials looked at the aggregation plan in 2000 and 2001, but they decided the savings weren’t significant enough to justify the process.

Since that time, Howell said electricity billing has changed, and the generation portion of the bills is a much larger percentage of the total.

To put the aggregation question before voters, council must pass an ordinance placing the issue on the ballot. The village must file paperwork with the Fulton County Board of Elections by 4 pm, Thursday, Feb. 18.

Howell said the ordinance probably will be presented to council at its next meeting, Monday, Jan. 18, 7 pm.

Advantages

Howell said if Archbold agrees to accept First Energy Services as its electricity generation provider, the company will guarantee a 6% savings on the generation portion of residential utility bills.

Further, the company will knock 4% off the generation portion of the general secondary rate paid by small businesses.

“That general secondary rate is pretty high. A 4% savings could be significant,” Howell said.

In addition, if village voters approve the aggregation plan, First Energy Services will give the village a onetime grant of $75,000. The grant has no restrictions.

The Village has a similar aggregation agreement with Ohio Gas Company for natural gas service.–David Pugh



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