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? EXHIBIT B 01-110 GOFT,'RNMEN7AL QP7=0C:,11' AGGREGJ710;N l. Ohio Governmental Opt-Out Aggregation is the "iewel" of Ohio deregulation. There have been issues and challenges faced by Ohioans regarding the price of electricity evei- since deregulation was passed in SB3. In retrospect, many do not regard electricity deregulation as a success. One area where SB3 clearly succeeded, however, was in creating opt-out goveinmental aggregation in Ohio. Elected officials and regulators agree that governmental aggregation has been a significant success. It has been recognized by the Ohio CoiIsumers' Counsel as the "jewel" of Ohio deregulation and "the most successful aggregation program in the nation." 2. Pi•esei°ve customer choice through 2overnmentat a21!regation 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 inet with little success and small, if any, savings because it only secures only a 5-8% consumer participation level. Ohio has the most successfill governmental aggregation progl°an1 in the country becalise 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 cligible consumers participating in their aggregation programs. Since 2001, NOPEC and NOAC's consumers have saved au estimated $100 million on utility costs. With this h-aclc record, it is easy to see why the Governor specifically recommended the continuatioll of governmental opt-out aggregation in his recent hybrid electricity proposal. NOAC and NOPEC agree that continuing opt-oiit governmental aggregation will help i-esidential 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 nLimber of iiII provcments. 3. Necessary modifications to make Ohio Governmental A1!2re2ation more successful A. By-passability on generation related charges. The major factor inhibiting govenlmental aggregation ovei° 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 2 1 S7020%-? 1