43
FES service changes effect Valley businesses
YOUNGSTOWN
Shake-ups in Northeast Ohio’s electricity market are an opportunity for some businesses in the Mahoning Valley, said one energy consultant.
FirstEnergy Solutions, a subsidiary of FirstEnergy Corp., will no longer sell or renew contracts for electricity to medium-size companies and industries, which it had been doing since 2009.
Chris Greulich, president of North Shore Energy Consulting LLC, said Valley businesses affected by the company’s decision can reduce their electricity costs in the market. The company will continue to serve large industrial and commercial customers.
“There’s real vibrant competition out there,” he said. “On any given day, you could have 10 to 15 energy companies competing.”
Greulich said FES couldn’t compete on price alone, and most contracts will expire within the year.
Many companies are now on the default service, which is 10 percent higher than the market, he said.
“It’s really in their best interest to check their competitive market,” he said.
However, shopping the electricity market can be complicated, and some businesses use energy consultants to go through the process.
“It’s a huge expense,” said John Lapin, operations administrator at downtown-based Ohio One Corp., 25 E. Boardman St., a client of North Shore.
Ohio One operates five properties downtown where electricity costs are important to their tenants, he said.
“Every cost we can control helps,” he said.
Lapin said they used FES in the past but now use Houston-based Direct Energy, and costs have dropped by 19 percent since 2009. Shopping for electricity can be complicated, he added.
“I don’t understand the whole system,” Lapin said.
Another client of North Shore was the Salem Community Center, 1098 N. Ellsworth Ave., Salem. The center’s contract with FES expires next year, said Heather Young, executive director of the community center.
Shopping for electricity is “just time consuming to do,” she said.