Huge Increase in Electric Costs Looming for Small Business!

News provided by

Council of Smaller Enterprises (COSE)

Apr 09, 2014, 11:47 ET

CLEVELAND, April 9, 2014 /PRNewswire-USNewswire/ -- The Council of Smaller Enterprises (COSE) is urging all small businesses to act immediately to protect themselves against alarming increases projected in electricity costs. Small businesses are expected to see a minimum increase of 35 percent in their electric bills over the next three years due to an unprecedented "capacity pricing" surge.

A number of factors, including the booming shale industry and the shuttering of costly, older coal fired plants, have created an unstable electricity market that will result in increased costs for small businesses.

"The capacity cost is something we all pay on our utility bills to ensure there is enough electricity on the grid to meet our needs," says Steve Millard, president and executive director of COSE. "Due to market conditions that cost is going to skyrocket over the next few years and small businesses need to protect themselves."

As an example, in 2013, the average Cleveland Electric Illuminating customer paid about 0.28 cents per kilowatt hour in capacity costs. This summer, that same customer will pay 1.26 cents per kilowatt hour and up to 2.94 cents per kilowatt hour in 2015.

If the average commercial business takes no action to protect against the price hikes, they could see an increase from $227 in 2013 to $1,058 in 2014, peaking at $2,470 in 2015. In just two years, that consumer will pay over $3,000 more in capacity charges.

"The price increase is unavoidable, but it can be mitigated," continues Millard. "Locking into a three-year fixed rate is the best option for a small business, but they need to do so soon."

All small businesses in the First Energy territories are eligible to participate in the COSE Electric Savings Program. While COSE members will see an additional savings, you do not have to be a COSE member to participate and save. For more information and to enroll, go to www.cose.org/electric or call 216-592-2222.

About COSE
COSE (Council of Smaller Enterprises) is committed to empowering small business success through a series of programs, services, events, and resources that support entrepreneurs, their businesses—and their employees. COSE helps small businesses achieve their idea of success in order to build richer, more vibrant communities that improve the economic climate and enhance quality of life. You can learn more about COSE at www.cose.org or contacting one of our small business concierges at 866-553-5427.

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SOURCE Council of Smaller Enterprises (COSE)