Electricity Aggregation Results Yield Significant Savings To Residents
Voters in the Western Ohio communities of Bellefontaine, Greenville, Anna, Ansonia, Belle Center, Covington, DeGraff, Quincy, West Milton, Wayne Lakes as well as residents of the unincorporated areas of Newberry Township in Miami County recently approved electricity aggregation referendums. That vote allowed their communities to seek bulk-negotiated electricity rates for eligible residential and small business customers in their respective communities.
On March 1st. Covington Village Administrator Mike Busse signed an aggregation agreement with Dynegy Corporation, who purchased the Duke Energy’s Cincinnati based retail business in 2015. Dynegy, was the winning bidder in a competitive bidding process that included four top-tier energy suppliers. In addition to Dynegy, the bidders included Constellation, IGS, and AEP Energy. Dynegy’s winning bid of 5.29 cents per kwh, locked for a three-year term, represents a savings of more than 20% from the current DP&L standard choice price.
“Our goal has always been to leverage the combined purchasing power of the collective group of residents we represent, to deliver the lowest rates, for the longest fixed term possible, from the most respected energy suppliers in the country,” AGE Managing Partner Jeff Haarmann stated. “I am extremely pleased with the results.”
“Residents of the Bellefontaine/Greenville group will benefit from the newly secured electricity supply rate of 5.29 cents per kwh beginning in April/May of this year,” Haarmann explained. “Additionally, our first group of communities who approved aggregation a little over 2 years ago, include Coldwater, Ft. Recovery and Jeffersonville. Their current aggregation contract expires in November and residents of those communities will see a significant drop in their rates when their current contracted rate of 5.99 cents per kwh expires and is replaced by the newly negotiated 5.29 cent per kwh rate.”
“A group comprising of Sidney/Shelby County communities and Bradford, which approved aggregation a little over a year ago in November, will benefit from the 5.29 cents per kwh rate in April of 2019 when that group’s current rate expires” Haarmann continued. “Sidney/Shelby County residents currently enjoy a very favorable rate of 5.441 cents per kwh, but will see a further rate reduction after their accounts are linked with the other two AGE aggregation groups.”
Haarmann further explained, “The Bellefontaine and Greenville group of communities, as well as the Ft. Recovery, Jeffersonville, Coldwater groups are the biggest winners in the short-term, but in the long-term, aligning all three groups with similar expiration dates benefits everyone. When running the bids for Bellefontaine/Greenville, we were seeing rates similar to Sidney/Shelby County’s 5.4 range. However, when leveraging Sidney/Shelby County into the current negotiations, we were able to secure more favorable terms through April of 2020, from which each community will ultimately benefit. That’s the advantage of having a very attractive negotiating group of similar sized communities in a specific region.”
For residents in Coldwater, Ft. Recovery and Jeffersonville, the current supplier of AEP Energy will automatically be replaced in November. There will be no action necessary for those residents to begin receiving the new rates in November of 2017. Similarly, residents in Sidney/Shelby County won’t be required to do anything when their current AEP Energy rate expires in April 2019. The entire process happens automatically upon notification by the winning bidder. Residents who are on competitive supply with another supplier are eligible for the same rate and term, but will need to contact AGE or Dynegy to switch to the aggregated rate at the conclusion of any existing contracts.
Dynegy will work with community officials to notify all eligible customers of the electricity supply rate, terms and conditions, and their right to opt-out of the program. Customers will have the right to opt-out of the aggregation program without penalty and continue to receive DP&L supplied electricity. Customers who do not opt-out can leave the program at any time within contracted term, without penalty.
For questions regarding electricity aggregation or rates and terms secured for individual residents or small commercial customers, residents may call AGE at 618-203-8328.