Electric bills to drop by 5%

Estimated annual savings are $20 for households and up to $150 for businesses.
& lt;a href=mailto:rgsmith@vindy.com & gt;By ROGER SMITH & lt;/a & gt;
CITY HALL REPORTER
YOUNGSTOWN -- City residents and businesses can expect their electric bills to drop about 5 percent starting early next year.
That will amount to about $20 a year in savings for households and $70 to $150 annually for businesses, city officials say.
The city expects to finish a deal soon to buy electricity in bulk from FirstEnergy Solutions in Akron, a FirstEnergy Corp. subsidiary.
Today, city council will be asked to authorize the board of control to sign a two-year contract with FirstEnergy Solutions. Thursday, the control board is expected to sign the contract if council approves.
Kathleen Slavens, a deputy city law director, said she expects it will take until year's end for that contract to start.
Ironing out details
The contract is contingent on the city and FirstEnergy Solutions reaching agreement on how the program will work, she said. FirstEnergy Solutions is expected to administer the program at no cost to the city, she said.
Also, the city must conduct public hearings and be certified by the state Public Utilities Commission.
Despite the contract, Ohio Edison will continue being in charge of distribution and transmission of electricity.
Residential customers and businesses that don't already have bulk electric deals each will see a 5 percent drop in their bills, said David Bozanich, city finance director.
Residents and businesses that don't want to participate can opt out of the deal.
How it happened
In May, Youngstown residents approved a ballot item 55 percent to 45 percent allowing the city to seek offers from bulk electricity suppliers.
The city then issued a request for proposals. Two companies responded, FirstEnergy Solutions and Buckeye Energy Brokers of Twinsburg.
FirstEnergy Solutions is an electricity supplier. Buckeye Energy is an energy consultant that would contract with a supplier, Slavens said. It was unclear what savings Buckeye Energy could offer, she said.
The city picked FirstEnergy Solutions because the company offered a clear savings, she said.
& lt;a href=mailto:rgsmith@vindy.com & gt;rgsmith@vindy.com & lt;/a & gt;