UTILITY SERVICE Council gets ball rolling on plan to reduce rates

Aggregation allows governments to buy electricity or gas as a group.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- It took more than two years, but the city is moving forward with a plan to get cheaper gas and electric rates.
In May 2002, voters approved two ballot measures allowing natural gas and electricity aggregation. Aggregation allows cities to pool customers together as a buying group to purchase gas or electricity.
But the plan took a back burner in part because natural gas prices were fairly low at the time of passage.
According to the Office of Ohio Consumers' Council, aggregated groups may have greater bargaining power than individual consumers because they buy in large blocks.
At a meeting this week, city council passed an ordinance giving the administration the authority to enter a contract with a consultant who will advise the city on how to proceed. The contract is capped at $10,000.
Councilman Felipe M. Romain Jr., D-at large, who chairs council's utilities committee, was the legislation's main sponsor.
Because the work is considered professional services, the bidding process isn't required.
How it works
Under aggregation, city electricity and gas users would be joined together and the city would accept bids from suppliers. Residents would be included in the program unless they opted out.
Trumbull County commissioners joined Northeast Ohio Power Energy Council for natural gas in 2002 which was for township residents.
The state Legislature passed a law allowing consumers to pick their own suppliers, effective January 2001. The idea was to reduce prices by increasing competition.
The city must develop a plan outlining how the aggregation program will work and how the local government will oversee that process, OCC's Web site said.
Two public hearings are required allowing residents to comment on the plan before its adoption.
The city then would shop for the best rate and negotiates other terms.
More information is available at the Ohio Consumers' Council Web site at www.pickocc.org or by calling the council at (877) PICKOCC.