Ohio Residents Lock Electric Rates for the Next 7 Years

Within the next couple weeks, over 600,000 households in Northeast Ohio will receive an offer to lock in the price of electricity at 6.75 cents per kilowatt-hour for the next seven years.  The Northeast Ohio Public Energy Council (NOPEC) has been working with FirstEnergy Solutions (FES) to enable this contract offer that is considered unheard of in the industry.

An additional 100,000 residents not served in the NOPEC communities will receive a similar offer from FES for 7 cents a kilowatt-hour for seven years.

Executives at NOPEC say that customers who accept the offer will ultimately save on their electric bill.  Chuck Keiper admits that for the first couple years the rate may be fractionally higher, but with a projected increase of power price in 2015 the residents will save for the remaining five years on the contract.

The benefit of this unconventionally long contract term for consumers is to avoid potential rate increases and eliminate the risk of a volatile market.  Many competitors provide more attractive pricing, however, the contracts only accommodate for a maximum of two years.  Apples-to-apples comparisons of electric rates from other Ohio utilities, including American Electric Power, Duke Energy and DP&L, are posted on the Public Utilities Commission of Ohio’s website.

To remain competitive, NOPEC and FES currently offer a percentage discount for 7% or 6% respectively off the price to compare.  And to alleviate some of the hesitation, NOPEC has a cancelation fee within the first three years of only $75 and no cancelation fee if you switch to another NOPEC contract.  FES’s cancellation at any time is $300.

The energy market is maturing and competition is condensing.  This offer is an attempt for NOPEC and FES to win back their customers from competitors.  Still in discussion between the companies are two and three year fixed-price contracts, all green power contracts, small business discount rates and public institution rates.

As of this post, many of Better Cost Control’s suppliers in Ohio can offer more competitive electric rates.  Submit a quotation request form or contact us for more information via email or call 617-332-7767.