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higher electric rates
WWW.COSE.ORG
INSIDE:
F E B R U A R Y 2 0 0 5
>
V O L U M E 1
>
I S S U E 1
welcome to
plugged in
Energy savings tips
and news you can use
free energy
audit
> 03
Big savings for
manufacturers
share your energy
experience
> 03
Join the COSE
Energy Committee
unlocking
residential energy
efficiency
> 04
Energy efficiency can
reduce your mortgage
payments
protect yourself from
higher electric rates
JOIN AN ENERGY AGGREGATION
d
eregulation is leading to exciting changes
in the energy industry, giving businesses
across the country the opportunity to choose
their suppliers. This choice means having access
to innovative pricing plans, quality customer
care, and new products and services.
Ohios electricity market is undergoing a
huge shift as it moves toward deregulation. As
various energy suppliers compete for your busi-
ness, the quality, quantity and value of energy
and energy-related products and services are
expected to improve.
Its important to understand the changes
and the options so you can make decisions that
positively affect your companys bottom line.
One of the simplest ways to protect your-
self is to join a group of customerscalled an
aggregationthat can purchase electricity at
better rates through bulk buying. Local gov-
ernments, business organizations and affinity
groups such as trade and professional associa-
tions have used this approach to obtain lower
energy prices for their residents or members.
COSEs Energy Program already operates
this way; our energy experts stay abreast of all
the changes in the energy market and negotiate
the best rates for our members. With COSEs
Energy Program, you can save as much as 20
percent on your electric bills.
plugged
in
A QUARTERLY PUBLICATION ON THE COSE ENERGY PROGRAM
Under new rules established by the Public
Utilities Commission of Ohio (PUCO), COSE
is required to register as an licensed aggregator
and received that designation in January.
While Ohios competitive electric market
has been slow to develop, aggregation offers the
most promising opportunity for you to realize
savings. By joining an aggregation, you can lock
in your electric rates and avoid paying a rate
stabilization charge (also called enhanced
shopping credits).
<<
LOCK IN YOUR ELECTRIC RATES
THE DEADLINES TO RECEIVE ENHANCED SHOPPING
CREDITSSAVINGS ON YOUR ELECTRIC BILL VARY BY
CUSTOMER TYPE AND CLASS, BUT THEY ALL ARE QUICKLY
APPROACHING, SO YOU MUST ACT SOON. FOR DETAILS,
CONTACT CAROL HAINES, COSE ENERGY PROGRAM MANAGER
AT
(216) 592-2391
OR CHAINES@GCPARTNERSHIP.COM.
i
www.cose.org/
energy
One of the simplest ways to protect
yourself is to join a group of
customerscalled an aggregation
that can purchase electricity at
better rates through bulk buying. WWW.COSE.ORG
2

>
COSE UPDATE PLUGGED IN
To take advantage
of enhanced
shopping credits
discounts
on FirstEnergys
electric rates
you must join an
aggregation like
COSEs Energy
Program or choose
an alternative
supplier early
this year.
CONTACT CAROL HAINES,
COSE ENERGY PROGRAM
MANAGER, AT
(216) 592-2391
OR
CHAINES@GCPARTNERSHIP.COM
NAME
COMPANY NAME
NO. OF EMPLOYEES
ADDRESS
CITY/STATE/ZIP
COUNTY
PHONE
FAX
E-MAIL
Preferred method of contact: Phone E-mail
If youre already a member, fax this form to
(216) 781-3349 or mail to COSE Energy Program,
Tower City Center, 50 Public Square, Suite 200,
Cleveland, Ohio 44113. If you are not yet a member,
please fax this to (216) 621-1827.
Welcome to Plugged In, the first issue
of a new quarterly publication that will be
included in your COSE Update.
At COSE, were expanding our Energy
Program with a new mission to provide
you with objective, practical information
about energy efficiency, performance
and savings.
Wed like to hear from you about your
companys energy needsand what
kinds of information would be most use-
ful to you. Please indicate which prod-
ucts, services and educational materials
youre interested in and well be sure
to include this information in upcoming
publications and educational seminars.

Gas purchasing

Energy Cost Reduction Tips

Facility energy audits

Other:_________________________
welcome!
e
nergy deregulation is a complex
issue. Here is a brief overview of
how the electricity markets in Ohio have
evolved:
In 1999, the Ohio legislature passed
Senate Bill 3 (SB3), which provided
electric choice for customers in Ohio.
SB3 also established a five-year market
development period (MDP) to allow time
for electric competition to develop; this
MDP ends on Dec. 31, 2005.
When SB3 went into effect, it was
assumed that a regional market would
develop quickly and that the retail
markets would follow. However, the
electric marketplace has not developed
as anticipated. Many factors contributed
to this lack of development, including
the fall of Enron and complex decision-
making that has yet to occur at the
federal level.
To help ensure that electric customers
dont face sticker shock from fluctuating
electric rates when the market development
period ends in December, the electric com-
panies were required to file a rate stabiliza-
tion plan (RSP). An RSP provides rate sta-
bility for customers and financial stability
for the suppliers to ensure reliable service.
In spring 2004, the PUCO made
numerous improvements to FirstEnergys
proposal and adopted a modified RSP.
In an effort to obtain the lowest possible
electric rates for customers in northern
Ohio, the PUCO-approved plan required
that FirstEnergy conduct a competitive
bidding process to bid out all of its elec-
tric load to competitive electric suppliers.
That competitive bid auction took
place on Dec. 8, 2004. The following
day, the PUCO rejected the results of the
auction, finding that the utilitys original
RSP provided better electricity rates for
consumers. As a result, a modified RSP
approved for FirstEnergy will be imple-
mented on Jan. 1, 2006.
As part of FirstEnergys plan, custom-
ers can save money on their electric bills
by opting to receive enhanced shopping
credits. To receive these credits, custom-
ers must join an aggregation like COSEs
Energy Program that has already quali-
fied for the savings, or choose an alterna-
tive supplier within the timeframes set by
the PUCO.
In an effort to test the market against
the RSP and obtain lower rates, the
PUCO may conduct subsequent auc-
tions at its discretion until 2006. If an
auction yields lower rates, the bid will be
accepted and those rates will be offered
to customers through 2008. If lower rates
are not obtained, then the stable rates
outlined in the modified RSP will con-
tinue through 2008.
<<
Ohio electric deregulation
what
does
this
mean
for
you

?
i
all about
Information courtesy of the Public Utilities Commission of Ohio FEBRUARY 2005
PLUGGED IN COSE UPDATE
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3

e
ligible small and medium-sized manufacturers can
receive free, comprehensive industrial energy assess-
ments from The Industrial Assessment Centers (IAC) program.
This federally funded program is managed by the U.S. Department of Energy,
which has completed more than 12,000 industrial assessments during the past 20
years. These assessments typically result in recommendations that average $55,000
in annual savings for each manufacturer.
Teams of engineering faculty and students from the Centers, located at 26 uni-
versities around the country, conduct energy audits or industrial assessments and
provide recommendations to help manufacturers identify opportunities to improve
productivity, reduce waste, and save energy. Schools serving the COSE membership
include University of Dayton, University of Michigan and West Virginia University.
WHAT IS AN INDUSTRIAL ASSESSMENT?
An industrial assessment is an in-depth assessment of a plant site, its facilities,
services and manufacturing operations.
During a one- or two-day site visit, a university-based IAC team
conducts a survey of the plant, taking engineering measurements as
a basis for assessment recommendations. The team then performs a
detailed analysis and makes recommendations with estimates of costs, performance and
payback times.
Within 60 days of the visit,