GROVE CITY — A program is forming to have school districts join together to save on electric costs.

The Midwestern Intermediate Unit is organizing a consortium of districts that use Allegheny Power to buy electricity once price caps expire in January.

For decades, what companies charge residential, commercial and industrial customers for electrical generation costs have been capped.

Now those caps have begun to disappear and will continue for Butler County and surrounding counties into 2011.

With a large number of kilowatt hours used by the combined districts, the consortium will have increased power to negotiate a deal.

"We're assuring our taxpayers that we are doing all that we can," said Robert Barber, business director at the intermediate unit.

Already, the intermediate unit has a similar group for districts served by First Energy companies, which includes Penn Power.

"It worked out fine," Barber said. "During those years, it served its purpose."

The Seneca Valley School District already participates in a consortium through a chamber of commerce, Barber said. Now, districts such as Butler, Moniteau and Slippery Rock are considering joining.

The recent announcement that FirstEnergy will buy Allegheny Power will have no effect on the plan, he said.

The idea is to hire a consultant once all the participants are signed-on and begin negotiating a good price based on the usage by the districts. By hiring someone who is familiar with the energy market, districts could get a better price than if school business managers did the deals.

Barger said, "The market is as favorable as it's been in the last four to five years."

The intermediate unit is considering On-Demand Energy as a consultant. It has a range of clients in the area and already deals with a large number of kilowatt hours.

"They've had a history of working with suppliers," he said.

Energy choice is a "whole new ballgame" for many schools, Barber said, but the consortium will make it easier for participants.

"The goal is to ensure your electricity needs are meet at the best possible price," he said.