In 2007, Cleveland city officials passed a measure to construct a coal power plant in Illinois that would help utility Cleveland Public Power better control electricity costs, however the customer savings the utility touted have yet to be seen.
According to the Cleveland Plain Dealer, city officials recently stated that between March and May, CPP paid $753,000 for electricity, but received none while the coal plant was down due to technical problems. Now, when the plant comes online, CPP will be forced to pay 42 percent more than the market price for electricity.
This is a far cry from the savings CPP officials projected, which they said would last for decades and be as low as 72 percent of the market rate. After signing up for the deal, the city of Cleveland was held responsible for $13 million to cover the non functioning facility.
Both Illinois and Ohio are benefiting from energy deregulation laws by allowing customers to switch energy providers when unfortunate circumstances, like CPP's, arise. However, switching electric providers can be confusing, and often customers seek the help of online resources to compare energy rates.