City Electric Aggregation Program

What is the Oxford Electrical Aggregation Program?

  • In 2015 the City selected the electric supply provider, American Energy Power(AEP), on behalf of citizens and renewed the contract for 36 months in October 2017.
  • The City’s contract with AEP is designed to offer citizens cheaper rates than their local utility provider. The program is able to provide competitive prices because it allows the provider to buy electricity in large volumes.
  • AEP offers 100% renewable wind-generated energy sourced from the State of Texas.
  • Residents now pay 5.156 cents per kWh, a 10.9% decrease in cost from the rate agreed on in 2015.
  • A household using 1,400 kWh per month will save, on average,  $52.84 for 6 months
  • In November 2019 you will receive a letter asking you whether you want to opt-out of this plan
  • An average American household uses 10,404 kWh per year. It would take 122 tree saplings to sequester the amount of carbon that that household emits. The green energy provided in this program emits little to no emissions.

Under the City Electric Aggregation Program, the City selected an electricity supply provider on behalf of consumers 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 in 2015 and the City passed an ordinance adopting this Electric Aggregation program.

The City 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.

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 the development of renewable energy generation resources. Renewable energy resources have lower greenhouse gas emissions than traditional energy resources. To learn more about renewable energy or to calculate your households carbon emissions visit https://www.epa.gov/environmental-topics/greener-living.

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.

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).

Why am I getting solicitations from other providers?

Though the city offers an electric rate with AEP,  you are able to choose any provider. You may receive solicitations from other providers but as long as you are enrolled in the electrical aggregation program you will be serviced by AEP.

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” after receiving a letter from the City about the program. 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. View a sample letter below.

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. 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 will be mailed by November 2019.

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

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 even be 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. 

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). If you register in the program you will continue to receive a bill from the local utility company, Duke Energy. There will be a charge from Duke Energy on the bill for distribution and a charge from AEP for electricity. 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. Here is an example of a bill, the providers are outlined in red. 

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 if my family or business moves?

If you move to another home located 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 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.