Update to the City of Oxford's Electric Aggregation Program
At the October 17, 2017 meeting, Council authorized the City Manager to sign an amendment (#2) with American Electric Power (AEP) for the procurement of electricity generation in the City of Oxford’s Electric Aggregation Program for a period of 36 months at a lower rate than the current agreement and incorporating the subsequent opt-out language. The new rate will be 5.156 cents per kWh which is a 10.9% decrease for wind generated electricity.
Our current contract with AEP was set to expire in May of 2018 at 5.785 cents per kWh for wind generated electricity. AEP offered to reduce that rate to 5.156 cents per kWh in return for a 36 month extension of the contract beginning in or around the December 2017 meter reading date(s). Since the current contract was due to expire in May of 2018, the proposal is actually a 31 month extension. This change will result in a savings of $8.81 for a customer with electric consumption of 1,400 kWh per month or $52.84 for six months. The non-green rate is also reduced from 5.650 cents per kWh to 5.101 cents per kWh.
The PUCO rules for this program require AEP to send a letter to all eligible customers in the City of Oxford. This means that customers who are already in the program will receive a letter from AEP providing them an opportunity to opt out of our program. This is required anytime the rates are changed even if they are reduced. Customers not enrolled in the program will also receive an opt out letter.
If you are in the program and wish to remain so, you do not need to do anything (recycle the letter). However, if a current participant does not wish to continue in the program, they must either return the opt out form or call AEP. Once again, every eligible customer in Oxford will receive a letter from AEP whether or not they are in the program. The letters should be mailed by October 31, 2017.