Fact Sheet Regarding Moratorium on Disconnects

Utility Aggregation Programs

Electric Aggregation:

Beginning in 2000, the City of Parma successfully implemented the Parma Electric Aggregation Program pursuant to the voted mandate of the March 7, 2000 election. In addition, the Law Department prepared for Council a Governance Plan and conducted all necessary public hearings to become the first certified Governmental Aggregation unit in the State of Ohio. Most importantly, the City of Parma successfully applied for and received for a five (5) year period, market support generation (MSG), a discounted supply of electricity. Specifications were prepared and a supplier for electricity was recommended to City Council.

There was an opt-out mailing in January of 2005 for the aggregation program for electric service announcing FirstEnergy Solutions as the new supplier from February 2005 through December 2008. The savings will be 15% off the shopping credit in 2005 and 2006, and 6% off the shopping credit in 2007 and 2008. As of January, 2006, the savings to Parma's residential, commercial, and municipal customers totaled $11,512,355.00.

You can call the City's consultant, The E-Group, for further information at 1-888-809-8436, or you can call FirstEnergy Solutions at 1-877-524-7283.

Natural Gas Aggregation:

The City of Parma’s Natural Gas Aggregation Program with MX Energy, Inc. will terminate effective October 31, 2007. At this time, the City will not continue with an opt-out Gas Aggregation Program after October 31, 2007.

If you are currently in the Gas Aggregation Program, you will automatically be switched to Columbia Gas to be effective after October 31, 2007. There is no termination fee if you would like to switch sooner or change to a different gas supplier. If you wish to compare pricing of Natural Gas Suppliers, you can research the suppliers at the Public Utilities website www.puco.ohio.gov. Please refer to the Columbia Gas of Ohio Apples-to-Apples chart.

If you have any questions regarding this Program, please contact the City’s consultant, The E-Group, at 1-888-809-8436.