Retail Choice & Aggregation
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 (CRES) companies. These companies offer time-limited, wholesale rate packages for electric generation rates. 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. 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 worst case, it 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 one CRES provider rate is called “aggregation.” From time to time local governments will poll their voting residents, or even have a ballot initiative, regarding an aggregation program. It is always important to research whether a proposed aggregation program includes any additional charges, early termination fees, or opt-out provisions.
Will this affect me?
The short answer is no, not directly. As a member of URE, electric aggregation will not affect you. Unlike investor-owned utilities, electric cooperatives are not-for-profit, member-owned, and locally governed utilities that for many years have benefitted from the bundling of cooperative members into a state-wide 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. Because of this, retail electric choice and electric aggregation will only apply to customers of for-profit energy companies.
URE is proud to offer and 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. No fine print, no penalties, no games, just safe, reliable, and affordable service. That’s the cooperative difference.