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Community Choice Aggregation – Ohio

| Written by admin | 2 Comments | Updated on Jan 27, 2009 The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/rule/community-choice-aggregation/2594-2/

An electricity deregulation law in Ohio is the second in the nation to give a preference for community owned electricity suppliers. Ohio’s community choice provision is modeled after the provisions in Massachusetts’ 1997 electric restructuring law. (see the Massachusetts Community Choice Rule for more infomation)

InOhio one of the options you may consider as electric choice becomes available is becoming part of a group that buys electricity for its members. An aggregator is a person or organization that brings a group of customers together. A large buying group may be able to get a better price for the group members than you can get on your own. This "buying power" may also allow aggregators to negotiate for additional benefits for the group’s members such as consolidated billing, energy management services, and energy use analysis.

Ohio’s law also allows for local government aggregation by cities, townships or counties, with "opt-in" or "opt-out" provisions for their consumers. All aggregators must be certified by the Public Utilities Commission of Ohio (PUCO) to make sure they are qualified to provide electricity in Ohio.

"Opt-in" aggregation is a program that permits each resident to sign up individually to participate in the program."Opt-out" aggregation is a program that automatically enrolls all local residents, unless they individually opt-out of the program (choose not to be included). If the local government chooses Opt-in aggregation, it can proceed to develop a plan, become certified and start signing up customers. The plan must include all rates and terms for customers to consider when deciding to join. If the local government chooses Opt-out aggregation, a number of additional requirements must be met – view those requirements here.

InFebruary 2001, Green Mountain Energy Company, featuring the leading brand of cleaner and renewable energy, was selected to serve over 400,000 Ohio electricity customers in the country’s largest-ever energy aggregation contract. The selection was made by the Northeast Ohio Public Energy Council (NOPEC), a governmental, public electricity buying group formed to serve nearly 100 communities in the area surrounding Cleveland. Under the letter of understanding, NOPEC and Green Mountain Energy Company will enter into a six-year supply contract starting in September 2001.

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  • Niccolo Caldararo

    Can you provide me with any documentation of cost savings under this community choice program? Also is there any data on how much “green” that is non-fossil produced energy has been provided compared with other areas or prior to the creation of community choice?

  • John Farrell

    We have a report from last year that did a survey of the progress on community choice aggregation around the country. It discusses the cost savings and other issues.
    http://www.newrules.org/energy/publications/community-choice-aggregation-update