SOPEC: Southeast Ohio Public Energy Council

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Presentation transcript:

SOPEC: Southeast Ohio Public Energy Council Guide to Electric Aggregation

Guide to Electric Aggregation Governmental energy aggregation: Local community buying power In Ohio, local communities are allowed, by law, to join their citizens together to buy natural gas and/or electricity as a group and thereby gain "buying power" to solicit the lowest price for the group's natural gas and/or electricity needs. This is called governmental aggregation. The PUCO presents the following information to help you understand the process if your community decides to aggregate.

Guide to Electric Aggregation What is governmental aggregation? Ohio's laws allow for communities – such as townships, cities and counties – to form the aggregated buying groups on behalf of their citizens. The governmental aggregator chooses an outside supplier for all of the customer-members in its group. Aggregations can be formed to buy natural gas, electricity or both. All governmental aggregators buying electricity must be certified by the PUCO. Communities that aggregate to buy natural gas are required to be certified by the PUCO unless they aggregate under an Ohio Constitution provision which allows "home rule" or the right for communities to take action under their own charters. If an aggregator is going to provide natural gas and/or electric buying services, it must be certified separately for each industry. Certification by the PUCO, means they have met strict requirements for doing business in Ohio. Therefore, you can participate with confidence. The law allows for opt-in aggregation or opt-out aggregation. http://www.puco.ohio.gov/puco/index.cfm/be-informed/consumer-topics/governmental-energy-aggregation-local-community-buying-power/#sthash.meTe6H6h.dpbs

Guide to Electric Aggregation Initial support of your Council is helpful 1) Get aggregation language on ballot through Board of Elections Initiative process. Sample language: Issue 2: Proposed Electric Aggregation, County of Athens- Ballot language reads, “Shall the County of Athens have the authority to aggregate the retail electric loads located in the County of Athens, 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?”

Guide to Electric Aggregation 2) Provide Ordinance readings for Council to join SOPEC. Sample language: AN ORDINACE AUTHORIZING THE MAYOR AND CLERK OF COUNCIL OF THE CITY OF ATHENS TO ENTER INTO THE SOUTHEAST OHIO PUBLIC ENERGY COUNCIL AND THE EXECUTION AND DELIVERY OF THE AGREEMENT ESTABLISHING SUCH COUNCIL FOR THE PURPOSE OF JOINTLY ESTABLISHING AND IMPLEMENTING AN ELECTRICITY AGGREGATION PROGRAM   NOW, THEREFORE BE IT ORDANIED BY THE COUNCIL OF THE CITY OF ATHENS, STATE OF OHIO, THAT: Section 1. This Council finds and determines that if the citizens should vote to approve the Aggregation Program previously adopted by the Council in Ordinance No. ____ then it is in the best interest of the City, including its residents, businesses and governmental entities, to join the Southeast Ohio Public Energy Council for the purposes of establishing and implementing the Aggregation Program. Section 2. The Mayor and Clerk are hereby authorized to execute the Agreement Establishing the Southeast Ohio Public Energy Council (the "Agreement"). The Agreement shall be substantially in the form presented to this Council and on file with the Clerk subject to such changes, insertions and omissions with are consistent with this Ordinance and ae not substantially adverse to the City and as may be approved by the Mayor, which approval shall be conclusively evidenced by the execution of the Agreement. Section 3. This Council finds and determines that all formal actions of this Council concerning and relating to the adoption of this Ordinance were taken in an open meeting of this Council and that all deliberations of this Council and of any committees that resulted in those formal actions were in meetings open to the public in compliance with the law. Section 4. This Ordinance is hereby declared to be an emergency measure necessary for the immediate preservation of the public health, safety and welfare of the City of Athens by reason of the immediate necessity to maximize the potential benefits of energy and economic development, and the advancement of sustainability goals as well as reduced electricity rates. Wherefore, this Ordinance shall take effect immediately upon its passage and approval by the Mayor.

Guide to Electric Aggregation 3) Submit request for membership to SOPEC: Section 2. Inclusion of Members:  Any municipal corporation, county or township in the State of may apply to become a Member of the Council by submitting an application in writing to the Board of Directors, accompanied by duly adopted legislation authorizing inclusion in the Council, execution of this Agreement and approval of the Bylaws. The Board of Directors shall review the application and by duly adopted resolution. the applicant municipal corporation, county or township shall be included in the Council and deemed a Member hereunder if its inclusion is approved by the affirmative vote of at least two-thirds (2/3) of the Board and the applicant municipal corporation, county or township executes the Agreement, The applicant shall thereafter be a Member and, if then requested, be assessed its portion of the Aggregation Costs by the same method and using the same formula as any other member, in accordance with the Bylaws.