Aggregation to be topic of Monday, April 17, session

To provide residents with additional information regarding natural gas and electric aggregation, a representative from Palmer Energy Company will host an informational meeting on Monday, April 17, at 5 p.m., at the Eaton City Building. 

Aggregation is an option available under Ohio law for consumers to obtain competitive electricity or natural gas supply where Energy Choice is available.  Aggregators can purchase electricity and natural gas on behalf of members of a buying group. According to the Ohio Consumers' Counsel, purchasing large blocks of energy gives aggregators bargaining power and may reduce marketing and administrative costs. These savings can be passed on to consumers in the buying group.

The electricity or natural gas continues to be delivered to the home by the utility, however, the pricing for the energy supplied is based on the price negotiated by the aggregator, according to OCC.

Local governments such as cities, counties, townships, and villages, may aggregate the energy used by their residents and arrange for the purchase of electricity or natural gas as “governmental aggregators,” according to an OCC Fact Sheet. They can aggregate on their own or jointly with other local governments. Ohio law gives local governments the option to choose either an opt-in or opt-out form of aggregation.

The OCC notes, opt-out aggregation is a program which results in residents being automatically enrolled in the aggregation unless they individually opt-out of the program. The opt-out method requires voter approval and is the most common form of governmental aggregation in Ohio. For opt-out aggregation, the issue must be approved by a majority vote. If the ballot issue is approved, the local government must develop a plan for the authorized program.

Before adopting the plan, a minimum of two public hearings must be held. Once a local government has decided whether to provide energy supply services directly or through another supplier or broker, a notice must be sent to each resident explaining the services to be provided, the rates, other fees or charges, early termination charges, and other terms and conditions of service to be provided. The notice must also explain the procedure for consumers who wish to opt-out of aggregation, according to OCC.

Palmer Energy Company is an Ohio-based company which serves as the energy consultant for entities including school districts, healthcare facilities, manufacturers, municipalities, and others.    

You can find additional information from the Ohio Consumers' Council in the downloadable sheet below.