Gas, electric aggregation meeting held

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BROOKVILLE — An information meeting on the city’s proposal to establish government electricity and natural gas aggregation programs with opt-out provisions was recently held for residents and owners of small businesses.

The purpose of the meeting was to provide information on the programs and how they can establish better electric and gas rates for residents and small businesses who are receiving their electric and gas through AES and CenterPoint Energy.

In order to establish the programs, voters must approve two ordinances – one for electric aggregation and one for gas aggregation.

The two ordinances will appear on the May 2 special election ballot.

The electric aggregation question is Issue 13 while the gas aggregation question is Issue 14 on the ballot.

Issue 13 reads “shall the City of Brookville have the authority to aggregate the retail electric loads located in the City of Brookville, and for that purpose, enter into service agreements to facilitate for those loads the sale and purchase of electricity, such aggregation to occur automatically except where any person elects to opt out?”

Issue 14 reads “shall the city of Brookville have the authority to aggregate the retail natural gas loads located in the City of Brookville, and for that purpose, enter into service agreements to facilitate for those loads the sale and purchase of natural gas, such aggregation to occur automatically except where any person elects to opt out?”

Voters are asked to vote either yes or no on the two issues.

The city is partnering with the Miami Valley Communications Council, located in Kettering, on establishing electric and gas aggregations.

MVCC is working with Palmer Energy, of Toledo, in securing the best possible electric and natural gas rates.

Amy Hoffman, customer service manager for Palmer Energy, said the electric and gas aggregation program offered by MVCC provides customers with an option other than purchasing electric and gas through the two utility companies.

“We are talking AES for electric and CenterPoint for gas. That’s the residents who are supplied by these two companies we are talking about,” Hoffman said.

“The MVCC has members that are cities and Brookville is one of them,” Hoffman said.

“MVCC wants to be an aggregate for multiple cities, which is actually a really cool thing,” Hoffman continued.

“By cities participating together you get the bulk purchasing power,” Hoffman said.

The other cities in the program include, Centerville, Clayton, Englewood, Fairborn, Germantown, Kettering, Miamisburg, Moraine, Trotwood, Troy, Vandalia, West Carrollton, Eaton and Union.

Hoffman noted the aggregate program is an opt-out program and therefore is a ballot issue.

“What that means is by passing the two issues the program will be in place and Palmer Energy will take care of things behind the scenes such as getting the group certified through the PUCO (Public Utilities Commission of Ohio) and making sure everything is done accurately and then it’s just an option, which is all that is in place at that point,” Hoffman said.

“What is nice about aggregation is everyone who is in it has the same rate. It’s a collective purchasing power, so the whole idea is to get a better price than the utility company,” Hoffman said.

Hoffman also noted anyone can leave the aggregation program at any time.

“There’s no early termination fees,” Hoffman said.

Hoffman indicated the contract will be for one, two or three years depending on what the MVCC and the cities decide.

Hoffman said once the two issues on the ballot pass, it will be certified through PUCO and two public hearings will be held.

Hoffman said once it has been certified and the public hearings are held, Palmer Energy will secure rates from suppliers.

“We will present the results to the MVCC and the board of directors of the program,” Hoffman said.

“The law director or prosecutor will then review the contract to make sure everyone is comfortable with the supply agreements of the program and the contract will be signed,” Hoffman said.

Hoffman said after the contract is signed, an opt-out letter will go to every eligible resident who receives their gas and electric service from CenterPoint Energy and AES.

“The letter will state the city is participating in gas and electric aggregation,” Hoffman said.

“The letter will also state this is what the kilowatt hour will be, this is the term and this is the supplier,” Hoffman added.

Hoffman noted if a resident receiving a letter doesn’t don’t do anything after receiving it, the resident will be enrolled in the aggregate program.

“If you don’t want to be in the program, there will be a telephone number you can call, a website or something you can mail that will opt you out of the program,” Hoffman said.

Hoffman noted a resident who receives a letter has 21 days to opt out of the program.

“After that, the utility will send out a letter stating your supplier is changing. If you decide against switching to the aggregate program, you can call us and we will take you off the list. You have seven days to do that,” Hoffman said.

“That right there takes up a month of opt-out options. Once that time frame is over, and the list is scrubbed over anyone who wanted to leave it, within one to two billing cycles, your utility bill will have the aggregate supplier listed on it,” Hoffman said.

Hoffman noted residents who have another gas and electric supplier other than CenterPoint and AES will not receive a letter.

But she said these residents can join the aggregate.

“Our hope is the electric program will start in August,” Hoffman said.

Hoffman said it is possible Brookville can join the program at that time depending on when PUCO completes the certification process and the two public hearings are held.

“I’ll see how that works out,” Hoffman said.

Hoffman noted Brookville will join the gas aggregate program when it begins in November.

Hoffman said it would be wise for residents to approve and join the aggregate program.

“Right now in this economy and in this market it doesn’t make sense not to do it,”Hoffman said.

Mayor Chuck Letner agreed.

“We looked at doing this years ago and at that time there were so many suppliers out there that you could go with whoever you wanted and get good rates, but now with the rates being what they are, we felt this was the best option,” Letner said.

“But if you don’t like it, opt out,” Letner said.

Anyone having a question or needs additional information may call city manager Sonja Keaton at (937) 833-2135, extension 104.

Reach Terry Baver at [email protected]

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