City Electric Aggregation Program

What is the City Electric Aggregation Program?

Under the City Electric Aggregation Program, the City acted on behalf of its electricity consumers to select an electricity supply provider who, through the power of volume buying, is able to secure electricity at competitive prices. The Public Utilities Commission of Ohio (“PUCO”) has taken steps to ensure that Ohio’s competitive electricity environment is consumer-friendly. Voters in the City approved this aggregation program and the City passed an ordinance adopting this Electric Aggregation program.

The City has selected American Electric Power (AEP) Energy as their preferred electricity supply provider to serve their residents and small businesses beginning with the May 2015 billing cycle for a period of thirty-six (36) months. In October 2017, City Council authorized the City Manager to sign an amendment with 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 previous 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.Table of Contents

Who is AEP Energy?

AEP Energy is a certified Competitive Retail Electric Service (CRES) provider and a subsidiary of American Electric Power (AEP). With an office located in Columbus, Ohio, AEP Energy sells electricity supply to customers at market-based prices rather than regulated rates offered by your local utility (Duke Energy).

How do I enroll?

You don’t have to do anything to enroll. All eligible customers will be automatically included in the program unless you choose to “opt-out.” If you “opt-out,” you will continue to be served by your local electric utility’s standard service offer or until you choose an alternative electric service provider. However, if you do not respond to this letter, the utility will complete the enrollment process. Once the utility completes your enrollment, you will be mailed an enrollment confirmation notice that your electric service will be provided by AEP Energy. No deposits are required to enroll.

What if I am signed up with a different supplier?

In order to become “eligible” to opt-in to the City’s aggregation program, you will have to cancel your current agreement first. Before you cancel your current agreement, you should ask about any termination fees. Normally there are no cancellation fees; however, some suppliers do have fees. It may be even a case where you  would be better off to pay the fee and then enroll in the aggregation program depending on the current rate you are paying, especially if you are paying in excess of the Duke Price-To-Compare which is about $0.062/kWh as of April 7, 2015. You should be looking at your Duke bill when you call the current supplier and when you call AEP at 1-877-726-0214. If you are with another supplier, you can find that supplier’s phone number on the Duke bill.

When will this program start?

The City Electric Aggregation Program began with the May 2015 billing cycle. The amended agreement begins in or around December 2017.

What is my price?

Beginning in or around December 2017, you will receive the 100% renewable energy plan at an electricity generation price of 5.156 cents per kWh for a period of thirty-one (31) months. 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.

How do I estimate my savings?

To estimate what your savings per kilowatt-hour (kWh) will be through this program, locate your ‘Price to Compare’ on your electricity bill. This is the price you pay for electric generation and transmission service from the utility. Take your ‘Price to Compare’ and subtract the offer price. This equates to your savings per kWh. Multiply your savings (if any) per kWh by your monthly usage (kWh) to determine your savings amount per month. The utility distribution charges and other utility charges and fees are not included in the savings calculation and will continue to be assessed by the local utility. (Any estimate of savings is not a guarantee of savings.)

Where do I send payment?

You will continue to receive one bill each month from your local utility (Duke Energy). The amount that you owe to AEP Energy will be stated separately on your bill and you will continue to send payments to your local utility only.

Can I remain on budget billing?

Yes, you can remain on budget billing; however, the budget billing program does not apply to your charges from AEP Energy – only to charges from the electric utility. Your total charges from AEP Energy will fluctuate from month to month according to your usage.

Can I cancel at any time?

Yes, you may cancel without penalty and switch to another provider or revert back to Duke Energy Ohio, the local utility. Should you cancel your service with AEP Energy and return to standard offer service with your local utility, you may not be served under the same rates, terms, and conditions that apply to other utility customers.

What happens at the end of the program?

As the program draws to a close, the City can choose to seek bids from electricity providers in order to negotiate a new contract on behalf of eligible households. The City can also choose to end the program, at which time participants would be notified of their options for continuing in a different program with AEP Energy, switching to another provider, or reverting back to Duke Energy the local utility.

Why is this an “opt-out” program?

It enables AEP Energy to offer a lower group rate based on the City’s size.

Why did the City select AEP Energy as its provider?

The City selected AEP Energy because they were able to propose a program that represented the best overall value for eligible households.

What happens if my family moves to another home?

If you move to another home location within the City of Oxford, you will be able to continue participating in the program. If you leave the City of Oxford, you will no longer be eligible to participate.

What happens if my business moves to another home?

If you move to another business location within the City of Oxford, you will be able to continue participating in the program. If you leave the City of Oxford, you will no longer be eligible to participate.

What is renewable energy?

Renewable energy comes from sources that are constantly and sustainably replenished such as wind, solar or hydro. AEP Energy’s renewable energy plan is produced from 100% wind power and is Green-e® Energy certified. Purchasing RECs can provide environmental benefits because they support development of renewable energy generation resources. Renewable energy resources have lower greenhouse gas emissions than traditional energy resources.

What is traditional energy?

Traditional energy comes from burning fossil fuels such as coal, natural gas, crude oil, and petroleum. If you prefer the traditional energy plan of a secure price of 5.101 cents per kWh for a period of thirty-six (36) months, instead of the 100% renewable energy plan, please call 1-877-726-0214 to enroll.

What is considered a small commercial business?

A small commercial business has less than 700,000 kWh annual usage and must be a non-mercantile customer as defined by Ohio Administrative Code.

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.

 Participation in the aggregation program is subject to the Terms & Conditions of the Agreement between the City and AEP Energy.