The city may enter a three-year contract aimed at saving the city an estimated $3 million on electric power acquisition and distribution over 12 years for $1.8 million over three years.

The proposed agreement would be made with non-profit American Municipal Power Inc. (AMP) to operate an energy efficiency program called Efficiency Smart Power Plant. Cuyahoga Falls has its own municipal electric system and purchases power through AMP.

Efficiency Smart is a program, explained Jolene Thompson, senior vice president of member services for AMP, that will provide the city with "deeper savings" on its costs to provide electric power.

"It really is a tool for your customers to help lower their energy bills [and] a tool for the community for economic development," Thompson said in an Oct. 4 presentation to City Council, adding that competitor First Energy is mandated by state law to offer a substantial energy efficiency program.

"Why would the city want to lose money by selling less electricity?" asked resident Donald Nelsch. "... If they don't sell as much electricity, they're not going to make as much money. What advantage to the city is that?"

"In the future the city has to go out and procure power supply," said Thompson "Having energy efficiency measures in place will cut the need to buy as much power on the market, which will save the city money."

"We're looking at how to offset the amount of power we may need in the future," said Valerie Wax Carr, city service director. "I don't think conservation is a bad thing. I understand it means not selling as much power, but it also means not having to buy as much power."

Carr said she looks at this program as an "investment to protect us against things that I don't want to happen. I don't want First Energy to come in and swoop away some of our big customers." Carr noted that while she wants to "target" the city's commercial and industrial customers, she doesn't want to "leave the residential customers out."

The estimated total annual customer savings would be $513,000, said Randell Corbin, assistant vice president for energy policy and sustainability for AMP. The estimated total lifetime customer savings, Corbin added, would be about $6.02 million. A "lifetime" is 12 years, he said.

The Efficiency Smart program is a three-year subscription at a cost of $1.8 million, Thompson said, which includes funding for incentives and rebates for residential, commercial and industrial customers. She said representatives of Vermont Energy Investment Corporation (VEIC) would meet with customers to find ways to improve efficiency, save energy and, in the case of business customers, increase profitability.

How the Efficiency Smart team would interact with commercial and industrial customers would be determined in collaboration with city officials, Thompson said, to make sure we were coordinating appropriately. Promotional items such as bill stuffers and newspaper items, would be used to reach residential customers, she said.

Thompson said that although the city would subscribe to Efficiency Smart for three years, the average measure taken to save energy has a life of 12 years. Savings to the city would be measured by a third-party auditor on an annual basis, she said.

AMP has been working with VEIC since late 2007 to analyze potential program benefits and approaches for its members, Thompson said, adding that VEIC has been under contract with AMP since June. VEIC is a non-profit founded in 1986, Thompson said, and has clients in 25 states and several countries.

VEIC will have an office and call center in Columbus, Thompson said, where customers can call VEIC with questions or concerns. Customers will be informed about efficiency programs through mailings and advertisements, she said. No one will go door-to-door.

Ohio cities participating in the Efficiency Smart program include Amherst, Brewster, Galion, Genoa, Hubbard, Hudson, Jackson Center, Newton Falls, Niles and Oberlin, said Corbin, adding that Wadsworth is expected to approve it. Council's public affairs committee will review the information and discuss it further at its next meeting be Oct. 18.

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