By Paula Pyzik Scott
The Village of Ada will host two informational sessions with background on governmental utility aggregation (gas and electricity) prior to putting the issue on the ballot for Ada residents.
The events are scheduled for April 27 and May 4 at 10:00 a.m., at the Historic Depot, 112 Central Ave., Ada. Representatives from Aspen Energy will provide information and answer questions from Ada residents.
Patty Navin, the Village of Ada fiscal officer, told the Icon that the Village is considering aggregation because of increasing utility costs. Jay Sell of Aspen Energy notes that energy prices have never been higher during his 18-year career.
When a municipality forms an aggregation pool, members can benefit from having a consulting firm procure and manage energy services. Prices improve when more customers opt-in for the program.
If approved, aggregation would be new to Ada, but it was first authorized in Ohio in 1999. Some 500 communities in Ohio use aggregation, according to Aspen Energy. A Public Utilities Commission of Ohio (PUCO) map of certificates of electric and natural gas aggregation is HERE. https://puco.ohio.gov/utilities/utility-maps/all-government-aggregators-...
The April 27 and May 4 information sessions will include an overview of energy aggregation and an opportunity for all attendees to ask questions.
Aspen Energy has also providing the following Government Aggregation FAQ:
Q: What is governmental aggregation?
A: Governmental aggregation is an easy & cost effective way for a large group of residential & small commercial consumers to save money on their electric/natural gas bills. States' law allows for communities - such as townships, cities & villages - to form aggregated buying groups to purchase electric/natural gas generation on behalf of their citizens. By bringing citizens together, the aggregation gains group buying power & typically can negotiate a better price with the supplier than each eligible consumer could have received individually. The governmental aggregator chooses the electric/natural gas generation supplier for all the eligible members in its group.
Q: How can Suppliers offer a lower price than utilities?
A: During select market opportunities a Supplier buys power at a lower rate than your utility, thereby passing on savings to our customers.
Q: What are the energy supply choices if my constituents decide to opt out?
A: You can stay with your current electric/natural gas utility, which will continue to supply your electricity/natural gas as it always has, or you can shop for a competitive supplier.
Q: What stays the same if we choose a Supplier?
A: You'll continue to receive reliable electric/natural gas service from your current utility. Electrical service components such as wires & transformers will remain where they are. Physical modifications are not required because electricity/natural gas is delivered through the same transmission & distribution system owned & operated by your utility. Your current utility will continue to be responsible for delivering electricity/natural gas & costs associated with those delivery services will continue to be charged by your current provider. You will also still receive one bill from your current utility, which will include electricity/natural gas supply charges from the new Supplier. Your current utility will continue to service all equipment and wires, as well as respond to any outages.
Q: What costs will our local government incur?
A: Any costs incurred by local governments are nominal & generally associated with including the referendum on the general election ballot.
Q: How often can we opt-out/opt-in without penalty?
A: There are no limits nor are there any penalties.
