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12-30-03: City may switch electric suppliers to save money


City leaders are close to striking a deal for bulk electric power service for 2005 to 2008, at a savings compared to current costs.
Buying electricity to distribute to city residents is the single biggest expenditure for the city per year, at more than $8 million this year. Celina has received all its power from Dayton Power & Light (DP&L) for the last 20 years, but may switch suppliers for the next three-year deal.
Celina City Council met in a committee-of-the-whole Monday afternoon to hear the progress of negotiations with prospective power suppliers. After a long presentation by engineer Donald Gruenemeyer, of Celina’s consultant Sawvel and Associates, Findlay, council members recommended giving DP&L one more day to lower their offer and stay Celina’s supplier.
Celina Safety-Service Director Mike Sovinski was given authority to execute the contract for power by city council. This morning, Sovinski told The Daily Standard that he gave DP&L until the end of today to come down on its price or the city will go with the deal offered by American Municipal Power-Ohio (AMP-Ohio).
The city sent out requests for proposals to six major electric suppliers and narrowed the field to the three lowest offers — DP&L, AMP-Ohio and a company called Constellation Power Source.
AMP-Ohio, a non-profit agency that represents municipal power suppliers across Ohio, issued an offer that approximately equates to $8.8 million in 2005, $9 million in 2006 and $9.2 million in 2007. DP&L’s offer for the same period starts at $9 million in 2005, $9.3 million in 2006 and $9.7 million in 2007.
Sovinski said he called the Monday committee meeting to announce that Celina will choose AMP-Ohio as the next bulk power supplier, but DP&L sent an e-mail in the morning that vaguely stated the company may lower its offer.
At the current offers, Sovinski said the 2005 electric cost will be just under what it will cost in 2004.
Those savings probably would not be experienced by residential customers, as city officials already have announced plans to restructure electric rates to make rates more appealing to industrial customers.
“The price that we’re looking at is a big improvement, even over what we are paying today,” Sovinski said.


Phone: (419)586-2371,   Fax: (419)586-6271
All content copyright 2003
The Standard Printing Company
P.O. Box 140, Celina, OH 45822