Community Electric Aggregation Programs in Ohio | Protect Your Business
Business risk higher energy rates as Ohio's community electric aggregation programs go into effect.
We have recently become aware of a situation affecting some of our valued electricity customers in Ohio. It appears that due to a state law that may not have been widely noticed by both commercial and residential Ohio electricity customers, there have been instances of automatic switches away from their current electricity suppliers. We are committed to addressing this matter diligently and ensuring that our Ananta customers are well-informed and supported in navigating any changes that may arise from such state-authorized actions.
To be fair, community aggregations for electricity and natural gas happen frequently in deregulated energy markets across the country, and they’re typically designed to save the consumer money on their energy bills. In response to all of the rate hikes in the deregulated electricity utilities in Ohio (ie: American Electric Power [AEP], Duke Energy, AES Ohio, and the FirstEnergy Solutions Utilities [Ohio Edison, Toledo Edison, and The Illuminating Company]), state representatives passed a law allowing for community aggregations to automatically take place to help commercial and residential customers avoid these rate hikes.
However, to put things into perspective, a significant number of our customers with existing contracts and rates ranging from four to five cents are experiencing an automatic transition to rates of six to seven cents. Failing to opt out of these programs and reinstate our original agreements could limit your options considerably. Timely action in opting out of these energy contracts is crucial to mitigate potential complications.
What is a community aggregation program?
A Community Electric Aggregation Program is a localized initiative in which a community, such as a town or city, comes together to collectively negotiate and secure electricity supply arrangements on behalf of its residents and businesses. This program enables the community to leverage its collective buying power to potentially access more favorable rates, cleaner energy sources, or specific terms from electricity suppliers. By pooling their resources, community members aim to gain benefits like cost savings, renewable energy adoption, or customized contractual terms that align with their shared preferences.
How can I avoid any potential rate increases?
To begin addressing this matter, it's important to note that your business may have received mail about a
Community Electric Aggregation Program in Ohio, affecting businesses all over the state. These letters have been sent to you by your utility provider or other entities regarding your specific city, or your municipality. Your chamber may have notified you as well. Under this program, the state has granted authorization from the above entities to automatically enroll your electricity account into an energy contract. To avoid being automatically enrolled into a community aggregation you must opt-out.
Can I opt out of a Community Aggregation Program if I'm not interested?
As a business owner, it's crucial to promptly opt out of this program as per the law. Acting early within the notification window allows us to easily decline any community or city aggregation deals that may be in motion. Even if we miss this initial window, opting out is still possible without penalty. However, opting out later may complicate our previous agreements.
To streamline the process, kindly review your invoices and promptly forward them to either myself or our operations team. This will facilitate the verification of your current rate, enabling us to swiftly reinstate your previous agreement. Your prompt attention to this matter is greatly appreciated.
Feel free to consult our detailed blog outlining the specific
Nopec Ohio Electric Aggregation processes taking place in northeast Ohio. In addition, I've initiated a formal complaint with the Public Utilities Commission of Ohio (PUCO.) Following our discussion, it became apparent that their jurisdiction is limited due to this being Ohio state law, which is overseen at the legislative level.
If you’re an Ohio business owner and want to learn more about how to opt-out of your community aggregation deals, and how you can reduce your community aggregation rate even further by 12% - 25%, please contact us at
info@goananta.com, and one of our energy procurement professionals will contact you with the next best steps.
Ananta Energy Source is a transparent energy procurement company that provides unbiased open-book pricing from A - Z. We run a tried and true RFP with multiple energy suppliers in Ohio (ie: Direct Energy, AEP Energy, Constellation Energy, Hudson Energy, Champion Energy, APG&E, Nordic Energy, IGS Energy, Dynegy, and CPV Retail), and we assist all of our commercial customers in navigating the wholesale electricity market by finding them the lowest electricity prices.
How do Ohio electric consumers register on the do not aggregate list?
Consumers have two options for enrollment for the do not aggregate list:
- Fill out and send the Electric Do Not Aggregate Form.
- Dial the PUCO toll-free number at (800) 686-PUCO (7826). Consumers will need to furnish their name, service address, and the customer account or identification number indicated on their utility bill.
Upon successful inclusion in the do not aggregate list, consumer names and service addresses will be visible on the PUCO website. Customer account and identification numbers will remain private.
To search for your business to see if you are on the do not aggregate list visit https://community.puco.ohio.gov/p/s/electric-do-not-aggregate-search.
Are there any risks or downsides to joining a Community Aggregation Program?
There can be potential risks or downsides to joining a Community Aggregation Program, and it's important to consider these factors before participating. Some of the potential risks and downsides include:
- Limited Provider Choices: While community aggregation can offer competitive rates, it might limit your ability to choose from a wider range of electricity providers. This could potentially restrict your options if you have specific preferences or requirements.
- Contract Terms: The terms of the aggregation contract might not align with your long-term plans. Agreements could include fixed rates that may not reflect future market changes, potentially leading to missed opportunities for savings.
- Exit Fees or Penalties: Some community aggregation programs might have exit fees or penalties if you decide to opt out before the contract term ends. These fees could offset any potential savings if you need to leave the program early.
- Changes in Service Quality: Depending on the chosen supplier, there might be variations in customer service quality, billing procedures, and other service-related aspects. You could experience issues that are different from what you might have encountered with your previous provider.
- Market Fluctuations: While community aggregation programs aim to provide stable rates, energy markets can still fluctuate. If the market rates drop significantly after you've signed up, you might miss out on potential savings.
- Renewable Energy Commitment: While many aggregation programs prioritize renewable energy sources, there could be instances where the level of renewable energy provided doesn't meet your expectations or align with your personal sustainability goals.
- Loss of Individual Control: Joining an aggregation program means surrendering some control over your energy purchasing decisions to the community or local government. This might not align with your desire for individual choice and flexibility.
- Notification and Information: Aggregation program details and changes might not always be communicated clearly or in a timely manner. This could lead to confusion or surprises regarding your energy bill or the program's operation.
- Economic Viability: The long-term economic viability of the chosen energy supplier could impact the program's stability. If the supplier faces financial challenges, it might affect the quality of service or lead to changes in pricing.
- Program Cancellation: There's a possibility that the community aggregation program could be canceled or discontinued, which might require you to find an alternative energy provider.
Historical Price to Compare Electricity Rates in Ohio
Below are historical Price To Compare (PTC) charts the Public Utility Commission of Ohio (PUCO) publishes and updates every month:
Image Sources:
AEP Ohio - Source: https://puco.ohio.gov/utilities/electricity/resources/historical-ptc-chart-aep
AES Ohio - Source: https://puco.ohio.gov/utilities/electricity/resources/historical-ptc-chart-aes-ohio
Duke Ohio - Source: https://puco.ohio.gov/utilities/electricity/resources/historical-ptc-chart-duke-electricity
Ohio Edison - Source: https://puco.ohio.gov/utilities/electricity/resources/historical-ptc-chart-ohio-edison
Toledo Edison - Source: https://puco.ohio.gov/utilities/electricity/resources/historical-ptc-chart-toledo-edison
The Illuminating Co - Source: https://puco.ohio.gov/utilities/electricity/resources/historical-ptc-chart-illuminating-company
