Electric Aggregation 4 Communities

Local Utility:

Ohio Edison

Population:

57,000

Challenge:

A limited amount of discount-price power is available on a first-come-first-served basis. Over 100 communities seek this power, but only a small fraction will receive it.

Buying Group Description:

Four communities seeking electric supply offers for Residential and Commercial customers.

Resolutions:

• Mr. Burns demonstrated to the Mayors and City Councils that open-market conditions would not result in significant savings for their residents.
• He led Public Hearings to gain support for the need for timely action.
• Eliminated all slack time from the project schedule. Began work on the next milestone the moment the prior critical-path activity was accomplished.
• Many communities represented by other consultants did not act quickly enough to receive this discounted power. Residents in those communities received offers based on the prevailing market conditions. Those offers yielded savings of only 1-3 percent off generation shopping credits.
• Collectively, these communities have saved their residents and small businesses over $8 million in the first three years of their programs.

• He explained the process for obtaining this limited supply of discounted power that was set aside to "jump start" competition. He convinced the elected officials that those who acted quickly could receive this power and be able to save their residents the most.
• Employed formal project management techniques that completed numerous tasks in parallel.
• Each community received the discounted power on the first day deregulation was allowed in Ohio. They realized savings up to 50% off their generation shopping credit. That equated to over $300/year in savings for many residents.
• By understanding the process, preparing the clients, informing all stakeholders of their plans, and using excellent project management techniques, we were able to make this a true success story.