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The City of Maumee joined the Northwest Ohio Aggregation
Coalition to jointly negotiate with public utilities and to
purchase power supplies. This aggregation process is allowed
under Ohio law passed approximately 10 years ago. After
reviewing the potential savings opportunity for the
residents and small business, Maumee decided in 2000 to put
the issue of opt-out aggregation (or grouping consumers) to
the voters. That was approved overwhelmingly. The City of
Maumee has participated with other communities in Northwest
Ohio to create a larger group for both Electric and Natural
Gas programs. That group is called the Northwest Ohio
Aggregation Coalition or NOAC.
Maumee's and NOAC's goal is to save residential and small
business consumers money on their energy purchases when
compared to the public utility offering.
Since its inception, the NOAC communities have
collectively saved over $38 million compared to what they
would have paid the Toledo Edison alone. This was achieved
by contracting for the energy supply or 'generation' with a
supplier other than Toledo Edison.
The programs for Gas and Electricity are
"Opt-Out" programs meaning the all customers are
included unless they "opt-out" (and, provided they
have not signed up with another supplier and that their
balance is current at the time of the periodic enrollment).
Electric Utility Opt-out notices that were mailed in
July, 2009, by FirstEnergy Solutions announcing the recent
aggregation plan negotiated by the Northwest Ohio
Aggregation Coalition (NOAC). This plan requires customers
do nothing to be included in the City's governmental
aggregation program. Maumee City Council has reviewed and
approved the pricing under this program after responses were
received from various suppliers of electrical power
generated for consumers.
The best offer (~4% less than the Toledo Edison rate) was
from FirstEnergy's subsidiary "FirstEnergy
Solutions". The only other supplier at this time is
Toledo Edison. This program reduces the Toledo Edison bill
for the typical residence an average of $30 to $40 per year
and is effective through May 2011. Since this is an
"opt-out" aggregation plan, you do not need to do
anything to enjoy the benefits of the program. Residents who
received an "Opt-Out Notice" from FirstEnergy
Solutions will automatically be enrolled in the program
unless they respond to that notice. All accounts will still
get monthly invoices from Toledo Edison. The only thing
customers will probably notice is a small amount of savings
and that the supplier name (FirstEnergy Solutions) will be
listed. This arrangement will be in place through March
2010.
Customers who do not Opt-Out will get a notice from
Toledo Edison that the supplier switch is being made. This
is a required notice to assure the customer is aware the
change in power supplier to NOAC has been recorded.
There is an additional proposal to change the
Distribution portion of the Toledo Edison billing rates. The
Ohio Public Utilities Commission previously approved an
increase in the distribution cost and also has approved
deferral of those costs by spreading out the charges over 25
years. FirstEnergy now has proposed to begin the payback of
deferred charges ahead of schedule in light of the savings
noted above in the generation portion. This would avoid
interest and carrying charges stretching over 25 years and
save hundreds of millions of dollars for consumers. The PUCO
is set to consider this proposal in September 2009. The rate
increase proposed for distribution is slightly less than the
savings gained in the generation portion of the rates.
Should this be approved, electric bills would be affected
during the non-summer months (typically the period of lower
bills). Rate increases for distribution would nearly offset
the savings created in the 'generation' portion of the bill.
The combined change would be a slight decrease in rates.
Natural Gas
In February, NOAC selected IGS Energy
(Interstate Gas Supply, Inc.) as the gas supplier for NOAC
communities in northwest Ohio. This, too, is an Opt-Out
program. IGS Energy sent notices to all eligible gas
customers in NOAC communities announcing an Opt-Out
opportunity. Those residential and small commercial accounts
that did not Opt-Out are now being supplied gas by IGS
Energy. The cost of the gas is included in the billing from
Columbia Gas. The price for this gas is 3.5˘ per CCF less
than the Columbia price. The NOAC rate will fluctuate as the
Columbia price does and always be 3.5˘ less than Columbia's
rate. This arrangement is in place through March 2010, at
which time a new arrangement will be negotiated. IGS Energy
also markets contracts independent of the NOAC program
offering fixed and variable rates at one or two year terms.
The NOAC (and the City's) program is identified by the
supplier name "IGS Energy (NOAC)"
Office
of the Ohio Consumers' Counsel
A great
resource for consumers - the Consumer Assistance
Handbook. This handbook provides information about how
to read and understand your utility bills and utility
meters; information on utility assistance programs and
energy efficiency. There's also a resource list with
information about other agencies and organizations. To view the handbook on line, go to:
www.pickocc.org/publications/handbook
The utility billing process can cause confusion or
concern. You can call the Office of the Ohio
Consumers' Counsel (OCC) toll-free hotline for help with
your utility disputes or questions. If you have a
complaint or question about charges on your telephone bill,
a meter reading problem or you need additional information
about your utility service, the OCC can help.
Customer Service Representatives can be reached toll-free at
1-877-PICKOCC (742-5622) or by email at: occ@occ.state.oh.us
and are to respond to consumers' questions about utility
services.
You can access utility information 24 hours a day, seven
days a week through the OCC's automated Call Center.
The Call Center's active voice response system allows
consumers to, among many other options, request materials
about specific utility issues, such as participating in
natural gas choice programs and selecting a long distance
telephone provider. You can also request free consumer
assistance publications. The OCC website is another
helpful alternative: www.pickocc.org
Public
Utilities Commission of Ohio
Information
is available from the PUCO’s website including
‘Apples-to-Apples Comparisons” and calculation
worksheets.
Go to http://www.puco.ohio.gov/puco/applestoapples/
Updated
08/17/09 |