“That’s a really big deal because right now, and historically, we have buying energy off the market and that electric is generally from burning coal,” Sackenheim said.
IGS Energy uses hydro-generated energy, which will power all city-owned facilities and 113 of the 3,000 street lights (the other street lights are owned by Duke Energy), Sackenheim said. The buildings that use the most power are the city’s water and sewer plants, which collectively cost $550,000 a year in electric costs.
Fairfield City Council approved the four-year contract with IGS, which will provide a 7 percent decrease in city expenses during the agreement. The city’s contract with Dynergy ends in December. About half of the potential savings will be realized by the Public Utilities Department, Sackenheim said.
“It allows the city to stretch its dollar further,” said Sackenheim. “If we’re going to realize savings of $50,000 a year across the city ... we’re going to be able to use those tax revenues for something else, like capital improvements, for instance.”
The city’s switch from Dynergy to IGS Energy is not unlike what residents can do, said Fairfield City Council member Terry Senger, who called the new contract “very competitive.” He said city residents occasionally receive mailers from electric suppliers, and “you can always find a better deal if you look for it, or you answer those inquiries.”
“Duke is the carrier for the power, but the power that actually comes through the lines is from one of these vendors,” said Senger. “This is a really good deal for the city.”
The contract is via a master supply agreement with IGS Energy through the Southwestern Ohio Educational Purchasing Council. The city will pay $0.0406 per kWh. It now pays $0.044 per kWh with Dynergy. Sackenheim said the agreement also avoids potential energy market fluctuations.
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