MOUNT VERNON — On Nov. 7, voters in Knox County’s unincorporated areas can join residents in 30 other Ohio counties who save money through electric and natural aggregation programs.
Both programs appeared on the ballot in 2021. Both failed. With utility prices rising, the county commissioners felt it was time to take another look at the benefits of aggregation.
“The aggregate program is a smart way to reduce one’s ongoing utility expenses. It’s one more tool to cut costs,” Commissioner Bill Pursel said.
Ohio’s electric deregulation in 2001 paved the way for aggregation programs. Aggregation happens when a group joins together and chooses one energy supplier for the whole group.
In this case, the group is residents in the county’s unincorporated areas.
Group buying power stimulates competition among energy providers because each provider wants to submit the lowest bid and win the contract. As a result, group residents get a lower rate compared to individuals who pay the normal market rate.
Contracts typically run for three years. That means residents will not see a rate increase during the length of the contract.
Conversely, if market rates go down during that three-year period, residents will still pay the contracted price. However, residents can opt out of the aggregation program and take advantage of the lower market rates.
Only residents in the unincorporated areas of the county will vote on aggregation. Residents in the city and villages will not.
If voters approve the ballot measures, everyone in the unincorporated areas of the county is automatically enrolled in the program. Residents can opt out without paying a fee.
The exception to automatic enrollment is residents already participating in an aggregation program, such as through Consolidated Energy, The Energy Cooperative, or Cumberland Gas. However, those residents can vote on the measures.
“There is no downside to the electric or gas aggregation,” Commissioner Thom Collier said. “It can save consumers significant money on their utilities. If they don’t want it or don’t like it, they can opt out at any time.”
Local effect of aggregation
Ottawa County voters approved electric aggregation in 2010. County participants have saved over $7.6 million since the program began.
Locally, Knox County placed its buildings in an electric aggregation program through Palmer Energy in 2012. The annual savings has fluctuated, but it averages around $26,000 a year.
Mount Vernon residents approved electric aggregation in 2008. Fredericktown also participates in aggregation.
In 2021, Mount Vernon locked in a four-year rate of 4.69 cents per kilowatt hour with Energy Harbor. AEP’s market rate was around 5.3 cents.
AEP’s price rose to 7.49 cents through May 2023. The price spiked to just above 11 cents in June; it will remain there through 2024.
Throughout that time, Mount Vernon residents still paid 4.69 cents.
According to Bob Snavely of Palmer Energy, it takes about three months to institute an aggregation program after voters approve it. Had Knox County residents approved electric aggregation in 2021, they would have locked in a rate under AEP’s rate of 6.74 cents.
FAQs
Andrew Champlin, IT and communications coordinator for the Board of County Commissioners, put together a series of videos featuring Bob Snavely of Palmer Energy to help explain gas and electric aggregation. The videos are found below.
