71-00 Plan of Operation & Gov for Electricity Aggregation

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Northeast Ohio Public Energy Council Purpose of the Plan of Operation and Governance This Plan of Operation and Governance has been prepared by the Northeast Ohio Public Energy Council (NOPEC) on behalf of its approximately 104 member communities in compliance with Ohio law regarding government aggregation of electric consumers (the "Aggregation Program"). The Plan contains information on the structure, governance, operations, management, funding, and policies of the Aggregation Program to be utilized for participating consumers in member communities. NOPEC's purpose in preparing this Plan is to describe the uniform approach to a consumer Aggregation Program undertaken by its member communities. Through NOPEC, the member communities seek to represent consumer interests in emerging competitive markets for electricity. NOPEC seeks to aggregate consumers to negotiate the best rates available for the supply and distribution of electricity and to advance consumer protection for all eligible residents, schools, churches, businesses and industries, and governmental entities. NOPEC acts as agent for its member communities and oversees managerial, technical, and financial resources to acquire'service and financial guarantees sufficient to protect consumers and the electric distribution utility. · -. Combining consumer interests of the NOPEC member communities increases leverage, resources, and buying power of participating consumers in member communities. Under the proposed opt-out Aggregation Program, participation is voluntary for each individual consumer in a member community. Any individual consumer will have the opportunity to decline service provided through the Aggregation Program and choose any electric supplier they wish at the outset of the program and every two years thereafter. New member communities shall have the opportunity to join NOPEC and every member community of NOPEC shall have the opportunity to cancel its membership on an annual basis. This Plan will not be adopted until public hearings ate held in accordance with SectiOn 4928.20(C) of the Ohio Revised Code. 1.0 Overview 1.1 Ohio Law Ohio law enacted in 1999 allows for competitive purchase of retail power supply. Section 4928.20 of the Ohio Revised Code allows municipalities, townships, or counties to develop governmental Aggregation Programs providing options for consumers in those communities to join together and utilize their combined purchasing power to competitively acquire firm all-requirements retail electric supply. Communities undertaking development of this option are known as "government aggregators." The law allows communities acting as government aggregators to join together and combine their resources for development and implementation of an Aggregation Program.