Here's what to do about doubling electricity prices | Betty Lin-Fisher
About two weeks ago, I wrote a news story explaining why customers who are buying electricity directly from FirstEnergy Corp. will see their rates nearly double starting in June, unless they choose a separate provider or are in a government bulk-buying group.
The good news is that current market prices are not nearly as high as the utility default rate will be in June and most communities in our area have good rates through aggregations or government bulk-buying and residents can get into those plans.
More: FirstEnergy default electricity prices will double in June. Here's why
What’s going on with electricity prices?
To quickly recap, electricity prices for customers who aren’t in an aggregation group or chosen a provider on their own and are paying the default price offered by Ohio Edison will nearly double in June. The reason: the price set by three competitive auctions throughout the year and monitored by the Public Utilities Commission of Ohio came in high.
While electricity and natural gas prices have begun falling, prices were at a high point in the market last fall when FirstEnergy had its October auction. So that, combined with an auction in January and late March, are blended together into a higher price than last year’s auction results.
The average weighted base price in June will rise to at least 10.1 cents per kilowatt hour (kwh) from a current price of 5.3 cents/kwh — a 91% increase.
As the regulated utility, FirstEnergy and its operating companies such as Ohio Edison provide a default price to customers who do not choose their own provider. That is called the Standard Service Offer (SSO) or price to compare. They do not make money off that price.
About 40% of a customer’s bill is for generation or usage. The other part is for distribution or delivery to your home by Ohio Edison.
The PUCO has certified the results of the auction and FirstEnergy still needs to file its final prices, which include some PUCO-approved fees. But the June default price will at least be the average weighted price of 10.1 cents.
The prices are adjusted in September to reflect the winter season, and there are also quarterly reconciliations that impact the price to compare that occur in January, April, July and October, a FirstEnergy spokesman said.
Who does this affect?
This only affects customers who are on the utility’s default price or who haven’t enrolled in a government aggregation or chosen a provider on your own.
This definitely isn’t a once-size-fits-all situation here. So it’s going to take a little bit of research and I’ll help.
Many communities in our area are under an aggregation with Energy Harbor, or NOPEC, a large aggregation that is currently re-enrolling customers. Both will have cheaper rates than the default price in June.
Community officials created aggregation groups in the early 2000s, after voters passed ballot measures allowing the groups to be formed to shop for gas and electricity. Aggregations automatically include community members who haven't actively chosen their own rate rate. Eligible customers get an opt-out notice every three years and are automatically enrolled unless they opt out.
Depending on when the price is set compared to market prices, sometimes those aggregation rates are more expensive or cheaper than the default or public rates on the PUCO’s Apples to Apples chart.
Another potentially confusing thing with aggregations is the contract term length.
For instance, several communities in our area have contracts with Energy Harbor through May 2024 or May 2025.
I reported that Akron’s aggregation price is 4.97 cents through May 2025. That is accurate, though readers told me when they called Energy Harbor, they were told it was only through May 2024. Energy Harbor's website also says May 2024.
Both the city of Akron and Energy Harbor have confirmed that the price is fixed through May 2025. Agents for Energy Harbor have told some readers the contract is through May 2024 because rules governing aggregations only allow contracts for 36 months. Every three years, all eligible customers are sent another opt-out notice and automatically included unless they opt out. Customers already enrolled in the aggregation don’t have to do anything to stay in and get that rate. Akron officials said they are working on negotiating the rate for after May 2025. Several other communities also have a price locked in through May 2025.
What should I do?
Check to see if you are in an aggregation. I’ve listed some below and some websites to check. You can also search on the Internet by putting in your community and “aggregation.” If your community has one, call the provider to see if you can get in and if there are any cancellation fees. There are often no cancellation fees or they are minimal, around $25. Each contract has different rules.
Your mailing address does not necessarily mean you can join that aggregation. For instance, a lot of communities have Akron mailing addresses, but that doesn’t mean you can be in the Akron aggregation. A good rule of thumb is where you vote.
Energy Harbor prices in Akron, Barberton, Green, Stow and Summit County townships
Many communities in the Akron region have contracts with Energy Harbor. Use this web page to search: https://energyharbor.com/en/community-programs/find-your-program or call 866-636-3749.
Here are the Summit County communities. All are fixed contracts:
Akron: 4.97 cents through May 2024 (price fixed through May 2025)
Barberton: 4.97 cents through May 2024 (price fixed through May 2025)
Green: 4.91 cents through May 2024 (price fixed through May 2025)
Stow: 4.92 cents through April 2024 (price fixed through April 2025)
Summit County townships (with the exception of Sagamore Hills, which is in the NOPEC aggregation. This also inclds the village of New Franklin, which is in this aggregation): 4.67 cents through May 2024. (the price is NOT fixed beyond 2024. This is also only townships in the county.)
Tallmadge: 4.96 through May 2024. (price fixed through May 2025)
What is the price for NOPEC communities?
Another big aggregator in our area is NOPEC, which has natural gas and electricity communities in Summit, Portage and Medina counties. Last August, NOPEC made an unprecedented move and returned its 550,000 electricity customers to FirstEnergy utilities, saying they would save money because the default price was cheaper (before the latest auction). NOPEC said it intended to re-enroll the customers this spring when they could offer competitive prices.
This week NOPEC began sending re-enrollment letters to 650,000 customers in 205 communities offering a 6.42 cents/kwh rate for six months beginning in June. The price will change after that. Customers will automatically be included unless they opt-out by May 2.
To see if you are in a NOPEC electricity community, go to at www.nopec.org/communities/community-map, contact your local community or call 855-667-3201. NOPEC also has natural gas communities, but not all NOPEC communities are both natural gas and electricity.
Other communities/public offers
There are a few communities in our area served by municipal power providers, including Cuyahoga Falls, Wadsworth and parts of Hudson (parts of Hudson have Ohio Edison and Hudson does not have an aggregation). Residents in communities with their own municipal power are not eligible to shop around for their own electric power, so this does not apply to you.
The city of Fairlawn is with Dynegy at 4.97 cents through May 2025.
If your community doesn’t have an aggregation, you can shop for the cheapest rate on the Apples to Apples chart at www.energychoice.ohio.gov. There are several providers who have cheap rates, but then charge you a per month “fee” and have a high cancellation fee. I don’t think those are worth it, so I would look for a good fixed rate with a cancellation rate you can live with or no cancellation fee.
AEP has a 7-month fixed rate for 5.89 cents with no cancellation fee. Direct Energy has an online-only 19-month fixed rate of 6.29 cents with no cancellation fee. The average residential household uses 750 kilowatt hours per month, so the difference in price is $3 a month.
Prices and offers change often, so find something you are comfortable with. If I had to choose a public rate, I’d probably take the 19 month one since it has no cancellation fee and watch to see if other public rates come down.
How do I know what I’m paying now?
Pull out your bill. Is there a supplier listed? You can see your usage (in kilowatt hours, kWh) and then your rate (listed in cents).
For instance, if you are a city of Akron resident and are in the Energy Harbor aggregation, you will have a 4.97 cent rate listed.
What about natural gas prices?
I wrote a column in mid-February saying it was time to go back to Dominion’s Standard Choice Offer (SCO) or check your local gas aggregations because prices and forecasted prices have dropped significantly. You can catch up on that information by going to my online Utility Guide at www.tinyurl.com/UtilityGuide
The SCO, effective April 13, will be $2.38 per thousand cubic feet (mcf), down from $2.63/mcf in March.
Betty Lin-Fisher can be reached at 330-996-3724 orblinfisher@thebeaconjournal.com. Follow her @blinfisherABJ on Twitter orwww.facebook.com/BettyLinFisherABJ. To see her most recent stories and columns, go towww.tinyurl.com/bettylinfisher
This article originally appeared on Akron Beacon Journal: Default electricity prices are doubling in June: Here's what to do
