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Question: What is going on with Dynegy Energy Services? We just received a letter in the mail with an “opt out” form telling us that our new “fixed rate” is going to be 8.417/kWh.“
MANSFIELD — The expectation Ohio Energy will raise electric rates in May prompted a City of Mansfield decision to switch its aggregate supplier, according to Jessica Martin, risk manager/procurement officer for the city.
Many city residents had questions after recently receiving letters from Dynegy Energy Services, the company the city selected as its new aggregate electricity supplier.
Through its electric aggregation program, which Mansfield began in 2010, the city combines customers to try to secure lower costs through the collective purchasing of electric services.
All residents are in the program unless they choose to “opt out,” Martin told City Council on Tuesday evening.
Martin said the city has used Ohio Edison recently because it was supplying electricity at 5 cents per kilowat-hour. That rate is locked in through the end of April.
Martin said the broker with whom the city works has predicted Ohio Edison’s rate will jump to as high as 11 cents per kilowatt-hour in May.
“That’s the projection that he has seen through the auctions he’s been doing,” Martin said.
She said the broker identified Dynegy Energy Services rate of 8.417 per kilowatt-hour as the best rate.
“In the long, that will save us money because we are locking in that price for two years,” Martin said.
She said residents who “opt-out” and choose to stay with Ohio Edison can still opt back in by contacting Dynegy if rates rise as the broker projects.
Similarly, she said, the city can also go back to Ohio Edison if its rates don’t rise as predicted.
“We want the best rate for our residents,” Martin said.
“So we would have that option to go back to Ohio Edison. That’s what happened last year. We were at a higher amount with our aggregation and in August, we were able to go back cause Ohio Edson was locked in at that 5 cent (rate). So we were able to go back to that,” she said.
Regardless of the decision residents make, they will continue to receive one bill for their electric service, according to Martin.
“Nothing changes as far as bills. Everyone would still the same bill no matter if you opt out or stay with Ohio Edison. You would still get just one bill,” she said.
1st Ward Councilwoman Laura Burns, chair of council’s utilities committee, thanked Martin for the explanation.
“I know there’s been a lot of general confusion over it with all the mailers and stuff that people received,” Burns said.
Residents are asked to make their “opt out” decision by April 6, though Martin said they can still make that decision after the company’s suggested date.
