CEO’s Message – October 2024

Understanding Electric Aggregation: What It Means for You This November

What’s Electric Aggregation?

You may see electric aggregation as an issue on your ballot this November when you exercise your right to vote. But what is electric aggregation, and how could it affect you?

In Ohio, electric customers of investor-owned utilities like AES, AEP, or First Energy are eligible to shop around for electric generation suppliers, also known as competitive retail electric service companies or CRES. These companies offer time-limited, wholesale electric generation rate packages. Customers who choose a CRES will continue to pay transmission and distribution charges, along with any other fees associated with service, from their current utility but will pay for wholesale electricity from the CRES. While shopping around for generation service can sometimes result in savings, often there are additional charges and early termination penalties included in these packages that can negate possible savings, or in the worst case, could increase costs.

Some energy consulting firms provide services to local governments, bundling customers into large groups to get wholesale deals with CRES providers. This bundling of customers with 1 CRES provider rate is called “aggregation.” Union County is polling voting residents this November to determine whether aggregation of electric consumers within the county’s boundaries should be permitted. According to county officials, with the proposed aggregation program on the Union County ballot, there will be no additional charges and no early termination fees, and customers in the program can leave at any time.

If the local government aggregates electric consumers in the area, those consumers will still be able to opt out of the program by filling out a form, but they would be included in aggregation by default.

Will This Affect Me?

The short answer is no, not directly. As a member of Union Rural Electric Cooperative (URE), electric aggregation will not affect you, even if it’s passed on November 5. Unlike investor-owned utilities, electric cooperatives are not-for-profit, member-owned, and locally governed utilities that for many years have benefited from the bundling of cooperative members into a statewide group for electric generation. This cooperative approach to generation has resulted in very reasonable rates through Buckeye Power. In fact, Ohio’s cooperative members already enjoy some of the most stable and affordable generation rates relative to the rest of the market, along with benefits of ownership like cash back in the form of annual bill credits.

State law grants Ohio’s electric cooperatives exemption from participation in retail electric choice — and therefore electric aggregation — because our member-owned and -governed business philosophy and our long-term approach to policy decisions are based on what is in the best interest of our members. Cooperative members are already paying for electricity at cost. Because of this, retail electric choice and electric aggregation will only apply to customers of for-profit energy companies.

How Should I Vote for This Issue if It Doesn’t Affect Me?

Even though the results of the electric aggregation vote won’t impact you directly as a URE member, your vote is still important and could affect others who are served by investor-owned utilities. We encourage you to vote based on your personal opinions about electric aggregation. If you don’t have a strong opinion, consider talking with your neighbors whom the policy would affect to get their thoughts and feedback.

URE is proud to offer and will continue offering reliable electricity generated and sold at cost to our members without needing to offer special limited-time rate packages. Our members own and govern the co-op, and their best interests are always our top priority. Our commitment to our members includes no fine print, no penalties, and no games, just safe, reliable, and affordable service. That’s the cooperative difference.