|
April 20, 2010
Dear Resident,
This letter is being provided to residents of Evendale as educational material regarding Issue 14 (Proposed Natural Gas Aggregation) and Issue 15 (Proposed Electric Aggregation) on the May 4th primary ballot.
The Village of Evendale Council has placed on the May 4, 2010 ballot an initiative to allow the Village to aggregate natural gas and electric purchasing. These are two separate matters dealing respectively with the Village’s potential ability to aggregate gas and/or electric purchasing by our residents and small businesses. The intent of aggregation is to obtain better pricing as a group than as individual homeowners. The Village of Evendale does not receive anything for aggregating.
Background
The gas and electric industries were deregulated, similar to telecommunications and airline industries, several years ago by the Federal Government. The Public Utilities Commission of Ohio then specifically enabled the deregulation of gas and electric for Ohio around 2000. The gas and electric industry is comprised of supply, transmission and local distribution. Up until deregulation these three components were handled by public utility companies. The deregulation only happened on the supply component of gas and electric while the transmission and local distribution still remain with the public utility.
Aggregation
With deregulation the State of Ohio allowed local municipalities to aggregate. This would allow Village residents to purchase natural gas or electric as a group, potentially saving money in the process. If aggregation is authorized May 4th, the Village will be authorized to follow the Public Utility Commission of Ohio’s (PUCO) guidelines to adopt a Plan of Operation and Governance. This would require Council to hold two public hearings on the plan before adopting it. Once this process is completed, the Village would submit to PUCO the Plan of Operation and Governance along with an application for the Village to become certified as a natural gas and/or electric aggregator.
Following certification of Evendale becoming an aggregator, the Village will be able to solicit proposals for gas and electric supply. These proposals will include price and terms, as well as the time period the price is going to be in place. Once the Village selects a provider, you as an eligible resident or small business will be sent a notice which allows you to “opt out” of the group pricing. You will only be eligible as a resident or small business if you are currently a Duke Energy customer, are not with another alternate supplier, and are not delinquent in your payments. It will be your choice to “opt out” of the group pricing and remain with Duke Energy. If you do not “opt out” you are automatically enrolled. The Village
would certainly not approve a proposal price that exceeds the current Duke Energy regulated cost. The few communities that have already completed this process are securing significant savings for their residents.
Next Step
If aggregation is approved on the May 4th ballot the Village will proceed with the process to become an aggregator. Because the aggregation certification process takes several months before the Village would be in a position to take advantage of group pricing the Village intends to authorize Duke Retail to offer an “opt in” endorsement program for electric supply pricing. Because this is an “opt in” program, where you have to take action to be in the program, it does not require Evendale to be an aggregator. Due to the very competitive electric market this “opt in” program is our best opportunity as a Village to help residents and small businesses save on their electric supply cost sooner than later. The
Village still desires to be certified as an aggregator but immediate savings are possible in the current electric market which we would like our residents to have the opportunity to take advantage of now, especially with high summer month usage upon us.
We hope this information is helpful as you decide how to vote on Issues 14 and 15.
If you have questions regarding aggregation or the Duke Retail endorsement program please contact Jack Cameron at 563-2244 or email jack.cameron@evendaleohio.org.
Sincerely,
Don J. Apking
Mayor, Village of Evendale
| 
