GIRARD Council looks at plan to reduce rates

In the Cleveland suburb of Parma, residents can expect a $65 to $70 annual reduction in natural gas bills.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
GIRARD -- City lawmakers are considering pooling the buying power of area electric and natural gas customers to reduce rates.
"We have a lot to gain," said Councilman John Moliterno, D-at large. "It's a natural for us."
The city has a contract to buy electricity from FirstEnergy at a reduced rate. Individual customers pay FirstEnergy directly for what they use at the lower rate.
Moliterno said the contract with FirstEnergy expires in about two years.
State law allows communities to pool their buying of electricity with residents of other communities to get a further rate reduction.
Moliterno said Girard could form a consortium with other communities, such as adjacent Liberty Township, to buy power at a lower cost.
Catching on: Jim Williams, senior compliance specialist with Ohio Consumers Counsel, a residential utility advocacy group, said 130 Ohio communities have approved referendums creating such pools.
Williams met with council members earlier this week. He was invited here by Councilman Brian Kren, D-3rd, chairman of council's utilities committee.
City council has asked the consumers counsel for more information about a referendum.
"We didn't think it would be that political," Williams said, noting the 130 issues were on last November's general election ballot.
Williams said a Parma city official told him residents can expect a savings of $65 to $70 annually on their electric bills.
Individual customers don't have to join the pool, and they can opt out every two years if they initially join, Williams pointed out.
Moliterno said such a consortium of consumers would help the city in negotiating a new rate contract with FirstEnergy.
Natural gas: Williams said that a similar program for natural gas rates will become effective during the heating season of 2002.
Because the city is looking at expanding its buying power for electricity, it might as well look at the possibility with natural gas, Moliterno said.
Mayor James Melfi said that the city should never be satisfied with prices and that the idea should be pursued.