71-00 Plan of Operation & Gov for Electricity Aggregation

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Northeast Ohio Public Energy Council · To provide consumer education and enhance consumer protection and options for service under contract provisions; · To provide managerial, technical, and financial resources to acquire service and financial guarantees sufficient to protect consumers and the electric distribution utility; · To improve quality and reliability of service; · To encourage environmental protection through contract provisions; · To utilize and encourage renewable energy development if and to the extent practicable through contract provisions and voluntary programs; · To utilize and encourage demand-side management and other forms of energy efficiency through contract provisions and organizational policies; · To advance specific community goals that may be selected from time to time; · To provide full public accountability to consumers, and; · To utilize local government powers and authorities to achieve these goals. 2.2 Aggregation Program Operations The Aggregation Program is designed to reduce the amount participating consumers pay for electric energy, and to gain other .f..avorable economic and non-economic terms in service contracts, including financial guarantees to protect consumers and the distribution utility. NOPEC shall seek fixed energy prices for each class of customers lower than the comparable price available from the local distribution company through utilization of the shopping credits provided for each class of customers. Large, commercial and industrial customers, due to the varying characteristics of their electric consumption, may receive individual prices from the selected Supplier(s). As agent for its members, NOPEC does not buy and resell power, but represents consumer interests as a master purchasing agent to set the terms for electricity supply and service from a competitive Supplier(s). Through a request for proposals and negotiation process, NOPEC develops a contract with a competitive Supplier for faro, all-requirements retail electric supply service. The contract is expected to be for a fixed term (anticipated at two to five years). NOPEC may contract with one or more suppliers to meet the needs of participating consumers in member communities. 2.3 Aggregation Program Funding NOPEC offers member communities the opporttmity to gain market leverage, share resources, and reduce administrative and other costs for developing, implementing and providing oversight for the Aggregation Program. Funding for these activities is anticipated to be provided by the selected Supplier(s) with an appropriate kilowatt hour charge to all participating consumers to cover costs of the program. This charge will be a fraction of a mill (less than one tenth of one cent) per kilowatt hour. Such funds Will be collected by the Supplier and paid to NOPEC. In the event additional funding for NOPEC is required, each NOPEC member may be assessed an annual fee pursuant to the agreement establishing NOPEC. The funding will be utilized for all Aggregation Program Operations. 6