Yahoo Autos FirstEnergy default electricity prices will double in June. Here's why
April 9, 2023 update: Consumer columnist Betty Lin-Fisher has written a follow-up column about rising default electricity prices and what to do. Click here for the story, which has some clarifications/updates to some Energy Harbor aggregation prices.
Customers who are buying electricity directly from FirstEnergy Corp. will see their rates nearly double starting in June, unless they choose a separate provider or are in a government bulk-buying group.
The average weighted base price in June will rise to at least 10.1 cents per kilowatt hour (kwh) from a current price of 5.3 cents/kwh — a 91 percent increase.
As the regulated utility, FirstEnergy and its operating companies such as Ohio Edison provide a default price to customers who do not choose their own provider. That is called the Standard Service Offer or price to compare.
About 40 percent of a customer’s bill is for generation or usage. The other part is for distribution or delivery to your home by Ohio Edison.
Why did the rate go up so much?
The price is based on a series of three competitive auctions of suppliers throughout the year monitored by the Public Utilities Commission of Ohio and blended into a price for the next year. FirstEnergy does not make a profit on the price, which is determined by the auction, and passed along to consumers, the utility said.
The results of the third auction earlier this week was blended with two other auctions in October 2022 and January and an auction on March 20. The change takes effect in June and will be in effect until May 31, 2024.
While electricity and natural gas prices have begun falling, prices last fall when FirstEnergy had its October auction were during a high point in the market, said Dave Jankowski, director of marketing for NOPEC, a large government aggregation group.
The final FirstEnergy prices have not yet been determined, but it will at least be the average weighted price. The PUCO still needs to certify the results of the auction, which is more of a formality and Ohio Edison and other FirstEnergy operating companies need to file its final rates, which will include some PUCO-approved fees.
The prices are adjusted in September to reflect the winter season, and there are also quarterly reconciliations that impact the price to compare that occur in January, April, July and October, a FirstEnergy spokesman said.
Who does this affect?
This only affects customers who are on the utility’s default price or who haven’t enrolled in a government aggregation or chosen a provider, said Matt Schilling, PUCO spokesman
Last fall and this spring, Ohio Edison’s default price has been cheaper than market prices because it was based on auctions before prices rose. The current Ohio Edison default price is 5.38 cents/kWh.
Many communities in our area are under an aggregation with Energy Harbor, with cheaper fixed prices.
Here are some of those rates: Akron and Barberton both are on a fixed rate of 4.97 cents/kWh through May 2025; Green is 4.91 cents/kWh through May 2024; and Tallmadge is 4.96 cents/kWh through May 2024. Summit County townships (with the exception of Sagamore Hills, which is in the NOPEC aggregation) are in an Energy Harbor contract for 4.67 cents/kWh through May 2024.
You can call Energy Harbor to find out more: 866-636-3749 or 888-254-6359 to get into your community’s aggregation. If your community is not with Energy Harbor, call your local community or search online.
NOPEC, which is a large community aggregator with natural gas and electricity communities in Summit, Portage and Medina counties, last August made an unprecedented move and returned its 550,000 electricity customers to FirstEnergy utilities, saying they would save money because the default price was cheaper. NOPEC said it intended to re-enroll the customers this spring when they could offer competitive prices.
Competitors who had agreed to provide the utility default pricing cried foul and the Public Utilities Commission of Ohio suspended NOPEC’s certification to be an electric aggregator. NOPEC has been recertified by the PUCO and will be sending re-enrollment letters starting in early April to 650,000 customers in 205 communities offering a 6.42 cents/kwh rate for six months beginning in June. The price will change after that.
Customers in those communities will automatically be included unless they opt-out by May 2.
To see if you are in a NOPEC electricity community, go to at www.nopec.org/communities/community-map, contact your local community or call 855-667-3201.
Residential customers who are not part of a community aggregation group with a cheaper rate can shop for a new rate before June on the PUCO’s Apples to Apples chart. Go to www.energychoice.ohio.gov Watch for contract terms and cancellation fees.
For more information about natural gas prices and advice, go to Consumer Columnist Betty Lin-Fisher's online Utility Guide at www.tinyurl.com/UtilityGuide
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com
This article originally appeared on Akron Beacon Journal: FirstEnergy electricity prices will nearly double in June. Shop around
