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Gas issue offers price option

Friday, October 24, 2008

By John W. Goodwin Jr.

The opt-in measure will be on the ballot in November.

CHAMPION — Several local politicians showed support for a countywide natural gas and electric aggregation plan, and they want voters to show the same support at the ballot box.

On this November’s ballot, voters in Trumbull County’s townships will be asked whether they want to grant the county commissioners the authority to secure a group price for electricity and natural gas that consumers could then buy.

Liberty Township Trustee Jack Simon and Champion Township Trustee Jeff Hovanic spoke in favor of the ballot issue at a meeting Thursday night. Liberty uses the aggregation process to offer lower gas and electric rates to consumers. Champion uses the process to buy gas.

Hovanic said Champion uses an “opt-in” aggregation system where consumers would ask to be admitted into the program. The plan being voted on the county level is an “opt-out” program where consumers are automatically included unless they ask to be taken out.

A similar issue was placed on the ballot in Trumbull County about five years ago but failed. Hovanic said he believes this attempt will be more successful because more people now understand the aggregation process.

“It is worthy of a yes vote. You have nothing to lose,” he said. “I know of no opposition to this. The problem has been knowledge of it.”

Simon said voters should vote to accept the program if only to make it available to those who want it. Even if the issue passes, he said, those who do not want to participate can simply opt out of it.

According to Simon, those living within municipalities with aggregation programs already in place will be able to choose between the county’s program, should it pass, and the existing program.

Glenn Krassen, attorney for the Northeast Ohio Public Energy Council, told those in attendance Thursday that should the ballot issue be accepted, the county could apply to NOPEC for gas and electric aggregation. He said NOPEC has saved its customers about $100 million in gas and electric costs.

“NOPEC charges no fees to members, it negotiates in bulk and has a very large purchasing power. NOPEC does advocacy for consumers and has a lot of experience, so Trumbull County would get all that experience at no charge,” he said.

Newton Falls, Liberty and the city of Warren are the only areas in Trumbull County that are members of NOPEC.

Thursday’s meeting drew about 20 interested consumers. Simon said the turnout was disappointing, but he is hopeful word about the program will spread.

Of those attending, several were concerned about a piece of Ohio law that will keep some from using the aggregation system. Simon and Hovanic said, under Ohio law, gas companies with less than 5,000 customers do not have to open up to aggregation.

Trumbull County Commissioner Frank Fuda said he would touch base with state lawmakers to see if anything can be done to change the 5,000 customer stipulation. He said the aggregation process is beneficial to everyone.

“This is a win-win situation,” he said. It’s just giving you the opportunity for low-cost gas and electricity.”

jgoodwin@vindy.com