City to end contract with FirstEnergy

By DAVID SKOLNICK
VINDICATOR POLITICS WRITER
YOUNGSTOWN -- Youngstown is ending its contract at the end of the month with a company that provides a reduced price for electricity to city residents.
The move to break ties with FirstEnergy Solutions Corp. will result in a 2.4 percent increase to the average consumer's monthly bill for the time being, according to city officials.
The problem is FirstEnergy can no longer guarantee savings to Youngstown customers because of uncertain state regulatory conditions regarding the electricity market, according to a letter from Kathleen M. Slavens, a city deputy law director, to members of city council.
A FirstEnergy employee confirmed that uncertain regulatory conditions make it no longer possible for the company to guarantee savings.
The city will seek other electric aggregation options for its citizens, Mayor Jay Williams said.
But a letter from FirstEnergy to Youngstown customers states the company doesn't know of any other electric suppliers currently enrolling customers.
Also, Slavens' letter says the city is "investigating its options on contracting for future electrical aggregation services," and "a new contract is not anticipated in the immediate future."
Youngstown voters approved a May 2003 ballot initiative permitting the city to buy electricity as a large consumer for its residents through an aggregation program that reduced that utility's cost.
Ohio Edison to provide service
Beginning Jan. 1, city residents will have their electric service transferred to Ohio Edison. City residents don't need to take any action to have the service changed, and the switch will not cause any interruption of electric service.
As it currently stands, the average city resident and small business will see a 2.4 percent increase in their electric bill, or 1.36 a month, beginning next month, according to Slavens.
Euclid also chose to let its contract with FirstEnergy for electric aggregation expire at the end of this month.
Officials with Ohio Edison recently said its customers are paying the same charges they were in 1990, and any increase won't occur until 2009.
Ohio has been working on deregulating its electric industry since 1999. Utilities were to be released from regulatory constraints at the end of last year, but state officials decided to extend regulatory control for three more years because a robust wholesale market had not developed.
skolnick@vindy.com