The city of Toledo will get a $3.2 million grant from FirstEnergy Solutions through the Northwest Ohio Aggregation Coalition, Mayor Carty Finkbeiner announced Friday.
The money can be applied to pay down the city's predicted $7.8 million general fund deficit for 2009.
"FirstEnergy Solution's offer comes at a crucial time for Toledo," Mr. Finkbeiner said. "We have been struggling to balance our budget and his funding definitely helps as we seek ways to maintain essential services."
The proposal entails a six-year extension to the current aggregation contract with rates of 6 percent off tariff for residential users and 4 percent off tariff for commercial users.
The nine metro communities that make up the Northwest Ohio Aggregation Coalition, the bulk buying group, in July sent notices that allow their citizens to opt out of a deal to buy electricity that the coalition negotiated with FirstEnergy Solutions, which is a FirstEnergy subsidiary.
By doing nothing, residents of Toledo, Maumee, Northwood, Oregon, Sylvania, Perrysburg Township, Holland, Lake Township, and those living in incorporated parts of Lucas County will automatically get a new rate of 6.4 cents per kilowatt hour — which would provide an average savings of $30 to $40 annually.
The deal runs through May, 2011.
Residents who do not want to be part of the deal must fill out the form they received by mail and return it by Aug. 7.
If they do so, their current power provider, Toledo Edison, will continue to supply them electricity at a rate closer to 6.5.
The grant money provided to the other communities is as follows:
wLucas County, $1,019,000
wLake Township, $100,000