Electric aggregation hearings held in VW

DAVE MOSIER/independent editor

It’s not often that a person can do nothing and save money, but that was the message of public hearings held Wednesday on the electrical aggregation issues approved by voters in November.

Bill Bradish, account manager for Palmer Energy, a consulting firm working with the County Commissioners Association of Ohio on electrical aggregation issues, explained that electric power customers in the county need do nothing to be enrolled in the aggregation program, while also stating that the rate that is negotiated through electrical aggregation, which uses the purchasing power of households in areas that approved the issue, would be cheaper than what individual electrical customers could get on their own.

“This is a big buying group,” Bradish said, adding that savings negotiated through aggregation will exceed anything individuals could get on their own.

Currently, the high bidder in the process, First Energy — which owns Toledo Edison and Ohio Edison —  is offering an 11 percent savings on local electric customers’ power generation costs, which comprises about half of most people’s electric bills. Bradish says he expects that percentage to go even higher by the time the bidding is completed.

Transmission costs, which form the other portion of electric bills, are not affected by electrical aggregation or deregulation.

The current savings number is a big change, Bradish noted, from when he began negotiations with power suppliers prior to the November election. Then only one company, First Energy, proffered a bid, and that would have included only a 3 percent savings.

“What kind of savings are we going to see?” Bradish asked rhetorically. “They keep changing every day because we keep getting newer and better quotes.”

Bradish said he feels the final bid sometime in March could result in savings of 15-20 percent of customers’ annual power generation costs — an amount that could total $200 a year for the average customer.

He noted that customers would receive letters in the mail in the spring stating that the program is beginning, but only need to take action if they decide to opt out of the program. Customers of electric cooperatives, such as Midwest Electric or Paulding-Putnam Electric, are not eligible for the program.

Bradish did add that there are several good reasons to opt out, with the primary one the fact that those taking advantage of the electrical aggregation rates will not be able to be on a budget plan. Some people may also be loyal to their current power supplier. Most county residents are currently served by AEP Ohio, although some customers in the southern portion of the county are served by Dayton Power & Light (DP&L).

Those customers wanting to opt out need to fill out and send the letters or cards back in. Those who opt out can do so without cost at the beginning of the program, and could also opt back in without cost later in the program. Even those who decide to opt out after the program begins can do so for a $25 fee, Bradish noted.

Following the initial letter, Bradish said a second letter would be sent out again announcing the start of the program and explaining how customers can opt out, if they so choose. A final letter would come from customers’ current power supplier – AEP Ohio, in most cases – basically saying “are you sure?”, he said.

Bradish did stress that those receiving letters from power brokers and utility companies should take no action if they plan to be a part of the aggregation program, since the rate will be better for the aggregation program.

Those who enrolled in one of the contracts being sent out by a number of power suppliers can also opt out, but that could be costly to customers, since fees there could be as much as  $150 or more.

Meanwhile, because a customer’s current power supplier will continue to send out electric bills and maintain equipment, Bradish said, the only thing that really changes is the name of company providing the electric power.

In addition to being good for the consumer, Bradish said, the aggregation program also provides a financial benefit for local government entities. Both the county and local political subdivisions whose residents voted for electric aggregation will receive a one-time payment of $10 for each customer that decides to participate in the program — an amount he said could total up to $150,000.