CITY COUNCIL Group rate proposal considered

The idea would give consumers more negotiating leverage regarding natural gas prices.
NEWTON FALLS -- City council voted Monday to place a proposal on the November ballot that will allow residents to decide if they want to be part of a program to allow the city to negotiate a group rate for natural gas prices.
The program would allow the city to negotiate a locked-in rate on behalf of gas customers who choose to participate. The program, called opt-out aggregation, assumes that all citizens who are not in a current contract with a supplier will be involved in the group buy. Citizens can also choose not to be involved.
Suppliers often give a lower rate for the large amount of customers, AMP-Ohio representative Bob Simmers told city council members when he proposed the program in February. Usually, 40 percent to 50 percent of gas customers choose to participate, Simmers said.
The locked-in rate usually saves money based on the average increase in the price of gas within the last few years. But, Simmers noted, the market could fluctuate up or down, so there is a possibility that the price could go up.
"You're either a hero for saving them money, or they decide to call you [council] and complain," Simmers said.
Win-win
The program gives more negotiating power to the customers, while companies also like the large amount of customers, Simmers said.
Because current customers with a contract would not be included, and those included could opt-out at any time, the program would be an additional choice available to them.
"Basically it's nothing more than a third choice for consumers. If they don't want to use it, they can simply opt out with no change to their current contract," Simmers noted.
The program is used in more than 100 Ohio communities including Cleveland, Toledo, Canton, Cuyahoga Falls, Amherst and Parma.