Thursday, January 26, 2012

Putting Money Back in Your Wallet

The Budget and Finance Committee will hold 2 public hearings on the city’s plan to form community buying groups for electricity and natural gas. The committee will hold an evening hearing on Monday, January 30 and a second hearing at its regular meeting on February 6. Both hearings will take place in City Council Chambers.

As a result of voters overwhelmingly approving natural gas and electric aggregation in November the City has a tremendous opportunity to negotiate savings and put real money back in the pockets of city residents, so that we can enjoy the benefits of competition that other communities in the region seen.


Cincinnati voters approved Issues 44 and 45, authorizing the city to negotiate group buying rates for electricity and natural gas. I sponsored the ordinances to put the measures on the ballot. More than 300 communities across Ohio have saved hundreds of millions of dollars on their electric bills since Ohio made this innovative tool — known as aggregation — available to communities in 2000.


Aggregation has proven to be an effective way for residential and small business utility customers to save money. According to a report last fall by Ohio Citizen Action, electric rates negotiated by other buying groups in the area ranged from 2 to 3 ½ cents per kilowatt-hour less than Duke’s generation rate, or “price to compare.” Read the full report on aggregation in Southwest Ohio here.


Administrators from nearby communities will describe their programs and the savings they’ve achieved at the pubic hearings. Green Township Administrator Kevin Celarek will speak at the January 30 hearing; Springfield Township Administrator Michael Hinnenkamp will talk about the savings their communities have seen.


Once City Council and the Public Utilities Commission of Ohio have approved a plan, the city administration will put the contracts out to bid, analyze the responses and recommend providers to the City Manager. The city will then notify residents of the terms of the contracts and how the program will work, including how residents can choose not to participate. The process should be completed and residents can start saving money on their monthly bills as soon as June 1.


I also have introduced a motion asking the administration to investigate incorporating renewable sources of energy and energy efficiency into the provider selection critieria.


EVENT: Budget and Finance Committee public hearings on utility aggregation

DATE/TIME: Monday, January 30, 6 p.m.

Monday, February 6, 1 p.m.

PLACE: City Council Chambers, City Hall, Room 300

801 Plum St.

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