“We like to give customers the option of the discount,” Smith said. “We feel that makes sense.”
The program was pitched by Smith to the board at its work session last week. Council is set to have a first reading on Monday, May 10, for proposed legislation indicating its endorsement.
The voluntary “opt-in” program provides a discount on electric bills. Residents can either chose a guaranteed 18 percent discount of Duke Energy Ohio’s fluctuating rate until December 2011 or be billed the fixed price of 6.39 cents per kilowatt hour.
But the city must endorse the program in order for residents to receive the discount. The city is being offered the program because it participates in a Duke Energy Retail Sales discount program for a select number of communities and large businesses.
“We’re a large user of energy because of our water and wastewater plants, principally,” City Manager Art Pizzano said.
The program expires at the end of 2011.
“Given this economy there, given the price of everything, their price is going to come down. The goal is not to lock anyone in when their prices could be coming down.”
The program also has a “peace of mind” guarantee, Smith said. If the discount percentage increase or the fixed price drops, he said customers will pay that higher discount percentage or lower rate automatically until the end of the program.
“You’ll never be worse off if you stayed with the utility, and you’ll be better off if there is a better rate out there,” he said.
Law Director John Clemmons said the endorsement is just saying the council will “give it a chance to work.”
Smith said about 10 communities are participating in the program and eight to 10 others are considering the program.
Pizzano told the board there are competitors to Duke Energy Retail Sales offering discounts. But Smith said those competitors are not offering the options, or a “peace of mind” guarantee.
Contact this reporter at (513) 755-5112 or mpitman@coxohio.com. Follow this reporter at
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