The Adobe Flash Player is required to view this multimedia interactive. Get it here.

Springfield residents could save on electric bills

Bishops: New birth control rule ‘a first step’
2/11/12
Police headlines for Feb. 11
2/11/12
Local Focus: Clark County for Feb. 11
2/11/12
Local Focus: Champaign County for Feb. 11
2/11/12
Cold, wind to keep roads slick today
2/11/12
> More headlines

By By Samantha Sommer, Staff Writer 8:45 PM Tuesday, November 24, 2009

SPRINGFIELD — Residents could save on their electric bills if the city becomes an electric aggregator.

City commissioners discussed aggregation Tuesday, Nov. 24.

First Energy is offering communities grants and discounts on customers’ bills if they act as a buying agent for residents and small businesses.

“This is an opportunity to save some of our residents money during these tough economic times,” City Manager Jim Bodenmiller said.

If approved, residents would receive a 6 percent discount on the generation cost of their bills and small businesses would save 4 percent. The city would receive a one-time grant of $30 per participating customer, which Bodenmiller said could total $500,000 to $800,000.

The discounts would save a typical home $50 to $80 a year, said Tim Suter, First Energy manager of external relations.

The nine-year agreement wouldn’t lock in a set rate, rather offer a discount off the market rate, Suter said.

That provision was key to Bodenmiller. Some cities aggregated natural gas service at a locked-in rate a few years ago, he said, which cost customers more as market rates dropped.

Customers could opt out once every three years or in between then by paying a $25 fee.

If they opt out, they could continue their current service.

To go into effect, commissioners would have to approve an ordinance authorizing it and it would have to go before voters, as early as on the May ballot.

The advantage for First Energy is knowing it has a customer for a length of time, Suter said, which allows for long-term planning.

Share this article