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ATTACHMENT II 0.1110 GOVI:. ..NMENTA.?? ?T-OUTAGGR.EGAMON 1. Ohio Governmental Opt-Out Aniregation is the "iewel" of Ohio deregulation. There have been issues and challenges faced by Ohioans regarding the price of electricity ever since deregulation was passed in SB3. In retrospect, many do not regard electricity deregulation as a success. One area where S133 clearly succeeded, however, was in creating opt=out governmental aggregation in Ohio. Elected officials and regulators agree that governmental aggregation has been a significant success. It has been recognized by the Ohio Consumers' Counsel as the "jewel" of Ohio deregulation and "the most successful aggregation program in the nation." 2. Preserve customer choice through governmental a2gregation As recommended by the Governor, Ohio should preserve a customer choice for residential and small business customers through Opt-Out Governmental Aggregation. There are 2 types of governmental aggregation, opt-in and opt-out. Opt-in aggregation has been tried in other states. It has been met with little success and small, if any, savings because it only secures only a 5-8% consumer participation level. Ohio has the most successful governmental aggregation program in the country because it permits communities to vote for Opt-Out aggregation. Voters in hundreds of Ohio communities have voted to aggregate their electricity requirements to increase their purchasing power and save money. The two largest Ohio governmental aggregation groups,NOAC and NOPEC, have experienced 93 to 97% of eligible consumers participating in their aggregation programs. Since 2001, NOPEC and NOAC's consumers have saved an estimated $100 million on utility costs. With this track record, it is easy to see why the Governor specifically recommended the continuation of governmental opt-out aggregation in his recent hybrid electricity proposal. NOAC and NOPEC agree that continuing opt-out governmental aggregation will help residential and small business consumers reduce their electric costs by giving them a choice. To enhance the viability of opt-out aggregation NOAC and NOPEC propose a number of improvements. ` 3 Necessarv modifications to make Ohio Governmental Aggregation more successful A. By-passability on generation related charges. The major factor inhibiting governmental aggregation over the past 7 years has been large, non-bypassable generation related utility charges. These charges are expiring in the next few years. Renamed charges of similar size should not be permitted. All charges that are not directly related to the local distribution or transmission of electricity should be bypassable by governmental aggregation zis7oz9vi