Local government may aggregate electricity or natural gas used by their residents after an election has been held and the majority of votes adopt the aggregation concept. If aggregation is chosen, then the community must develop a plan of operation indicated how the community intends to carryout its aggregation plan. Two public hearings are required which allows the community to provide input about the plan. Once the local government decides that aggregation is a viable alternative that may work for their particular community, and then the supplier should be selected as well as appropriate terms and conditions.
Eagle Energy suggests that the community adopts an “opt-out” form of aggregation in order to maximize the benefits of aggregation. The opt-out program automatically enrolls all local residents; however, individual residents maintain their right to be excluded from the program.In addition, the local government should select a certified supplier to provide the service and to negotiate the rate and terms and conditions by which the service will be provided. The local government is required to be certified by the Public Utility Commission of Ohio prior to providing the aggregation service.
Eagle Energy provides all of the administrative requirements of the aggregation program so that the local government can continue to focus on the operation of the community. The services provided are at no cost to the community.
Benefits of Aggregation
Aggregation permits large blocks of energy, either natural gas or electricity, to be purchased in a larger bulk that provides for diversity of the load and helps reduce a potential supplier’s marketing and administrative expenses. The reduced costs are passed on to the individual customer who remains part of the aggregation program.
The local economy benefits as well!! The multiplier effect creates $2.50 in the local economy for every $1.00 savings in the local resident’s utility expenditure.The same reliable service is provided at a lower cost. Service restoration and customer service issues remain resolved by discussing them with the local utility.
“Eagle Energy has made the governmental aggregation program process very easy for us resulting in a win-win for everyone without additional cost to the taxpayer.”
Michael W. Burns, City Manager, Village of Indian Hill, Ohio.
