Aggregation confusing? Help on the way

Van Wert independent

Although voters in a number of Van Wert County political subdivisions approved electrical aggregation issues in November, County Commissioner Thad Lichtensteiger said mail offers now being received by local residents have nothing to do with that program.

“There is some confusion that people may think the solicitations they’re getting are actually related to the aggregation issues,” Lichtensteiger explained, noting that some of the recent contract offers could be expensive to get out of for residents who mistake them for aggregation contracts and sign up.

The commissioner said he briefly looked at an offer from First Energy, a competitor of AEP Ohio — the utility company that supplies most of the electric power to county residents — adding that it appears those who sign contracts with First Energy might have to pay a penalty of $150 to back out later on. That number is an amount equal to more than two years of projected savings from the voter-approved aggregation plan put together by Palmer Energy.

Others soliciting local electric customers include Border Energy and AEP Retail, a subsidiary of the local electric utility.

The aggregation plan would currently save county residents 8 percent annually on their electric power generation costs. Other electric costs, including transmission costs, would be unaffected by aggregation. Palmer Energy, which promoted aggregation to local officials earlier this year, estimates the savings would average between $65 and $70 annually for those included in the program. Under the plan approved by voters, Palmer Energy uses the combined customer base of the affected areas to negotiate better electric power rates from utility companies.

But that’s for the aggregation plan, not the recent solicitations by other electric utilities, such as First Energy. Although perfectly legal — the electric power industry has been deregulated for several years now — the solicitations are confusing to local residents who may think they’re part of the aggregation program. As previously noted, although competing plans could offer better savings for local electric customers, the plans could also result in a financial penalty for those who sign contracts based on the solicitations, but decide to back out later. Currently, those who decide not to participate in the aggregation program can opt out without cost if they do so at the start of the program.

Those living in areas where aggregation issues were adopted can eliminate the confusion and learn more about the program by attending one of two public hearings scheduled for 4 and 7 p.m. Wednesday, December 14, in the Ohio State University Extension meeting room, located in the Administration Building on the fairgrounds.