The stated purpose of utility aggregation is to give a community’s residents better gas and electric rates through the power of collective negotiations.
The price of electricity has risen nationwide, and inflation, natural gas cost increases, supply chain problems and other issues — like growing post-pandemic demand for power — are complicating factors, officials have said.
Last year, AES Ohio’s “standard offer” electricity price went from 4.805 cents to 10.91 cents per kilowatt-hour (kWh). A kilowatt-hour is how much energy you need to run a 1,000-watt appliance for an hour. A 100-watt bulb takes 10 hours to use a kilowatt-hour of energy. A 2,000-watt appliance takes 30 minutes.
As of April 1, 2023, CenterPoint Energy’s standard choice offer is 31 cents per ccf. Natural gas use is measured in cubic feet and is billed in units of 100 cubic feet (1 ccf).
Ohio consumers can choose their electricity or natural gas suppliers — where their energy comes from. Under aggregation, a community entity negotiates with suppliers on behalf of eligible households, nonprofits and small businesses to save money on bills by grouping together.
The city of Huber Heights has offered electric aggregation since 2017. Residents are automatically enrolled in the program but may choose to opt-out.
If voters approve the natural gas aggregation ballot measure in May, the city will develop a plan of governance and operations and hold two public hearings before filing an aggregation application with the Public Utilities Commission of Ohio (PUCO).
“Once completed, the city will go out to bid to see if market rates provide better options than CenterPoint’s default gas rates,” said Sarah Williams, community engagement specialist for the city of Huber Heights.
Williams said this process takes several months and the earliest a program could be up and running is fall of this year.
The proposed gas aggregation program would also be opt-out.
Governmental aggregation programs allow municipalities to choose energy suppliers, but the delivery of the energy is determined by who owns the hardware.
Locally, for residents currently serviced by AES and CenterPoint, these two companies would still be responsible for the delivery of electricity and natural gas — and maintenance of wires, poles, and pipelines — regardless of who supplies the energy.
The city of Union is partnering with the Miami Valley Communications Council in its proposed aggregation effort, which will allow the city to collaborate with other MVCC communities to gain additional buying power.
The city of Troy plans to negotiate a three-year natural gas supply rate as part of the MVCC if its ballot measure is approved. Troy residents are currently eligible to participate in an electric aggregation program through Energy Harbor.
The city of Brookville is also considering collaboration with MVCC if the aggregation measures are approved, according to City Manager Sonja Keaton.
If approved, the proposed aggregation programs in Union, Brookville, Troy, and Cedarville will automatically enroll residents unless they opt-out. Each city will notify its residents regarding opt-out procedures.
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