Message from the Finance Department

Some residents have been calling the city to ask about electric rates and NOPEC. In the late 1990’s Ohio started to partially deregulate the energy market.  Today, Ohioans can buy power on the open market from a supplier they choose.  Consumer advocates thought one person alone couldn’t negotiate better prices.  Advocates then created opt-out government aggregation options. A municipality, if voters approved, could join an aggregate like NOPEC to shop on behalf of residents.  Residents would automatically be a part of the buying group, unless they opted out.  Olmsted Falls residents voted and passed community aggregation ballot measures in November of 2002.  After the voters passed the ballot measure, then Olmsted Falls like most cities joined NOPEC.  More than 100 cities in Northeast Ohio joined NOPEC over twenty years ago.

What happened when NOPEC’s rates increased last year?  Timing was the main reason. The solution was to temporarily drop approximately 550,000 customers back to the utility, which was cheaper because of timing.  So last year First Energy’s distribution rate was less than NOPEC’s rate, and that is why NOPEC temporarily dropped customers.

Although this year, the scenario has reversed. First Energy rates will jump from 5.3¢ per kilowatt hour currently to 10.2¢ in June.  NOPEC will give many people the opportunity to avoid June’s large electric rate hikes.  In June, NOPEC will guarantee electric rates at 6.5¢ per kilowatt hour for six months, which is far below default pricing that will be offered by First Energy, CEI, and Ohio Edison.  Even after six months, you still have the option to opt-out of NOPEC.  In NOPEC communities, all customers are automatically in the program, unless they opt-out.  Olmsted Falls residents are free to opt out and search on the open market if they believe they can find a better deal.  No one is forced to stay with NOPEC.

In closing, in summer 2022 NOPEC’s rates jumped to 12¢ per kilowatt hour, and the standard service offer from first Energy was much cheaper at 6.8¢.

This summer the scenario has changed or reversed.  First Energy customers will be charged 10.2¢ per hour vs. NOPEC customers only being charged 6.5¢.  The ultimate choice is yours.  Residents can stay in NOPEC, or shop for both electricity and gas on the open market.  Please see options at Apples-to-Apples or EnergyChoice.ohio.gov using comparison tools.

Also, NOPEC will have virtual meetings April 22, 2023 from 2:00 – 3:00 PM and April 27^th from 7:00 – 8:00 PM.  Go to www.NOPEC.org/infomeetings.