Power4Schools Electricity Information and Update

You have always received phone calls about purchasing electricity from another entity rather than using Power4Schools.  More recently, the number of calls has likely increased. Unfortunately, there is no good way to prevent the calls from other parties. Power4Schools (P4S) understands that these entities are pitching the idea that there is huge savings available if you use them rather than P4S. 

So let’s review some facts. 

  • P4S pricing through Dec. 2019 with FirstEnergy Solutions (FES) is 5.18 cents per kWh. 

  • P4S has begun efforts to improve the program at the end of the current contract.

  • Total consumption for the participating Districts exceeds 700 million kWh annually -- that buying power makes a difference in the market.

  • Right now, there are over 140 power marketers and about 360 brokers, aggregators or consultants authorized by the Public Utilities Commission of Ohio (PUCO). In some cases, the brokers have subcontractors looking for additional business. Some are even mis-representing that they are working with PS4. This is NOT the case.

  • You may hear from others that FES is going to go bankrupt.  While FES has financial challenges, did you know that P4S already secured a ‘letter of credit’ to secure a substantial portion of districts’ anticipated savings that would be provided to your district; to offset any loss of savings as such in the event of bankruptcy.  In the event of a reorganization by FES, they are still highly likely to perform under the terms of the agreement.

  • P4S charges a small fee of $0.001 per kWh for its services. This fee is much lower than the industry standard for this type of service. While it may be obvious, others want to sell you electricity at the highest profit possible.  If you talk with a broker ask them what fee they include in the power supply costs. 

  • If P4S were pricing supplies for the participating Districts in 2020 and beyond the price would be well below 5 cents per kWh. Do not let what appears to be a low price from another entity fool you that P4S pricing will be higher.   

  • When faced with these confusing phone calls and email messages, P4S respectfully suggests that you ask yourself the following questions:

1.     Will my pricing be better on my own than with P4S?
2.     Do I want to make this complicated procurement decision without the assistance of someone I trust?
3.     Do I trust this broker or power marketer to look after my best long term interests or their own?

Power4Schools will continue working towards securing cost effectively electricity for your facilities. 

If you have questions, please feel free to contact OSC Utility Coordinator Barb DelRoso at bdelroso@osconline.org or 216-447-3100. You may also call the P4S Energy Consultant, Mark Frye at Palmer Energy ( mfrye@palmerenergy.com ). 
Ohio Schools Council | 6393 Oak Tree Blvd. | Independence, Ohio 44131 | www.osconline.org