Monroe residents may vote on joining electric, gas aggregation program

Palmer’s account manager says residents could save $40-$50 per month on electric bill.
Monroe's City Council will decide whether to place natural gas and electric aggregation programs on the Nov. 7 ballot. NICK GRAHAM/STAFF

Credit: Nick Graham

Credit: Nick Graham

Monroe's City Council will decide whether to place natural gas and electric aggregation programs on the Nov. 7 ballot. NICK GRAHAM/STAFF

MONROE — City Council took the next step toward possibly placing natural gas and electric aggregation programs on the Nov. 7 ballot.

Council heard the first reading of two ordinances Tuesday night that would allow Monroe residents to decide whether they want to be offered gas and electric programs with opt-out provisions. Council will hear the second reading at its next meeting on June 27, and if it passes, the city will direct the Butler County Board of Elections to submit a ballot question to the electors.

The deadline to notify the board of elections is Aug. 9.

Then, if the electric and gas issues pass as they have throughout Butler and Warren county cities, Monroe, working with Palmer Energy Company, will follow the steps necessary that will create the group and seek bids for natural gas and electricity, according to a staff report.

Aggregation measures are meant to give Ohio consumers the opportunity to choose their electricity generation suppliers — where their energy comes from. Under aggregation, a community entity negotiates with suppliers on behalf of eligible households, nonprofits and small businesses to save money on bills by grouping together.

Phil Dysard, account manager for Palmer, said his company is working with 15 Dayton-area cities, including Centerville, Fairborn, Germantown, Kettering, Miamisburg, Trotwood and West Carrollton.

He said Monroe has about 5,500 households, and based off current pricing, he believes if they join the aggregation, they will save $40 to $50 a month on their electric bills.

Dysard compared it to buying groceries. He said one bottle of Coke is more expensive than the price of one bottle in a 6-, 12 or 24-pack.

“The more you have the better price you receive,” he said.

City council will have to approve the program, too. Palmer will make a presentation about rates, council will need to approve, then residents will have 21 days to opt out of their current energy plan with no fees or penalties or remain with Duke, Dysard said.

By joining the aggregation, customers will receive a fixed rate for the duration of the contract and avoid “teaser rates” that sometimes can jump five times higher when the offer expires, he told council.

Matt Schilling, a spokesperson for the Public Utilities Commission of Ohio (PUCO), has said community energy aggregators allow a block of customers to shop the market and find the lowest rate possible. Schilling said aggregators are able to shop the market more frequently than standard providers like Duke Energy and that means their prices are generally more responsive to market conditions.

PUCO mandates that all opt-out aggregation services be approved by the voters.

Council member Jason Frentzel, part of the city’s finance committee, said it looked at three energy options and chose the Palmer Energy Company.

Similar energy issues are expected to be on the November ballot in Trenton, Lemon Twp., Oxford Twp., Ross Twp. and Millville.

In May, Middletown residents approved the city registering to become a certified aggregator with the PUCO.

Middletown chose Cincinnati-based Energy Alliances, Inc. as a consultant.

Tim Abbott, director of community relations for Energy Alliances, told the Journal-News the program could potentially offer Middletown residents lower rates than Duke Energy, the default provider.

Energy Alliances manages more than 60 programs throughout Ohio, including West Chester Twp., Liberty Twp. Hanover and Fairfield Twp. in Butler County and Clearcreek and Turtlecreek townships in Warren County.

In November, voters across the region approved measures aimed at giving residents better gas and electric rates through the power of collective negotiations.

All measures on the ballot for aggregation in Warren, Montgomery, Miami, and Greene counties were approved, according to the county boards of election.

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