Electric Aggregation
What is Electric Aggregation?
Electric Aggregation gives residents that live in the same city or municipality the power to purchase electricity from an electricity supplier as a group, instead of as an individual or through their default supply from the electric distribution utility. Aggregation gives local residents a stronger voice and more choice in where their electricity comes from!
This is accomplished by cities, counties, townships, or villages putting an issue on the ballot and residents voting to create their own aggregation purchasing group. From there, the municipality issues requirements, priorities, and preferences to potential energy suppliers and then uses their purchasing power in alignment with their community goals to choose the best supplier with the best terms and price.
Why is it important?
Aggregation can provide more stable prices over the term of the contract and when used to invest in local renewable energy projects or energy efficiency programs, it can reduce the risk consumers face with the volatility of the fossil fuel market that drives the electricity market.
With the right supplier, municipal aggregation programs can lower overall prices for residents and small businesses.
Municipalities can implement a renewable energy aggregation program that relies on 100% renewable energy for its supply. This can be accomplished through physical projects built locally or regionally. It can also be accomplished through the purchase of renewable energy certificates (RECs) for all or a portion of the amount of energy supplied. The RECs must be purchased and retired in order to claim the environmental benefits of the generation.
Can be used to meet clean energy and carbon reduction goals
Can save residents and small businesses money on their electric bills
Can provide a new source of funding for clean energy and/or energy efficiency goals
Provides stable per kilowatt pricing through life of CCA
What do communities need to know?
Ohio law provides for opt-out governmental aggregation. That automatically enrolls all local residents in the aggregation program unless they have notified the government that they do not want to participate in the program.
If you are currently in an electric aggregation, know that when it’s time to review contracts, you can choose clean energy and work with the aggregator to make sure your goals are being met.
If you have any questions or are in need of help in reviewing your community’s aggregation contract, please reach out to Joe Flarida at joe@poweracleanfuture.org. For more information, view our fact sheet.
Communities with Aggregation:
There are 390 electric community choice aggregations registered with the Public Utilities Commission of Ohio.