Electric Aggregation – City of Upper Arlington

November 16, 2023 Update

Following an extensive review and community engagement process earlier this year to explore the merits of offering the community a new electric aggregation program, City Council unanimously approved moving forward with this initiative at its September 25 meeting.

Primary goals for the program are to facilitate stable and lower cost electric utility services for residents and business customers, to ensure the provision of reliable and first-rate customer service, and to support renewable energy with a brown energy option for customers.

To facilitate this new program, the City is joining the Sustainable Ohio Public Energy Council (SOPEC). Formed in 2014, SOPEC serves approximately 30 communities across Ohio, with a collective buying power representative of one of the largest customers in the State. SOPEC’s goal is to provide simple, valuable, and reliable public energy programs that help communities achieve their local energy and sustainability goals.

Next Steps

Following adoption, SOPEC and the City have reviewed market rates and terms from AEP Energy bids and locked in pricing starting in January of 2024 through June of 2025. The three options for eligible households and businesses are:

Default 100% Renewable Energy at 7.203 cents per kWh.
Brown Energy step down priced at 6.823 cents per kWh.
Opt out of the program altogether.

As a reminder, the AEP Ohio standard service offer rate is currently 10.910 cents per kWh.

For additional information on comparison electric supplier price options, you can visit the Energy Choice Ohio website: //energychoice.ohio.gov/applestoapples.aspx

Opt-Out Notice

View the Opt Out Notice Here (pdf file)

On November 21, households and businesses that are eligible to participate in the program will be mailed a joint notice from SOPEC and the City, detailing the terms of the program. If they do not wish to participate, these prospective customers will have until December 12 (21 days) to opt out of the program.

Open Houses

The City will be holding open houses the following dates for assistance to residents needing help understanding Electric Aggregation and their options:

- 10 am, Monday, December 4 – UA Senior Center, 1945 Ridgeview Road (Building #2 Rm 204)
- 2 pm, Tuesday, December 12 – UA Senior Center, 1945 Ridgeview Road (Building #2 Café UA)
- 5 pm, Monday, December 4 – Tremont Library, 2800 Tremont Road (Friends Theater)
- 5:30 pm, Monday, December 11 – Municipal Services Center, 3600 Tremont Road (Lower Level Meeting Room)

DETAILS

PUBLIC MEETING SCHEDULE

COMMUNITY ENGAGEMENT OPPORTUNITIES

Please note, the public hearing schedule has been adjusted slightly from dates previously communicated.

Zoom Information Session 1: Noon, Wednesday, August 16
- Watch the meeting video | View the presentation slides
Zoom Information Session 2: 4 pm, Wednesday, August 16
- Watch the meeting video | view the presentation slides
Community Meeting: 6:30 pm, Thursday, August 24, 3600 Tremont Road
Community Meeting: 6 pm, Monday, August 28, 3600 Tremont Road

CITY COUNCIL MEETINGS / LEGISLATIVE HEARING TIMELINE

June 26 – presentation by SOPEC and Council discussion. Watch the meeting video
September 11 – Plan of Operations and Governance Public Hearing, Proposed Aggregation Program First Reading / Public Hearing.
- Watch the Meeting Video (select Item 8B under the “Bookmarks” on the right of the screen)
- September 11 Staff Report – Proposed Plan of Operation & Governance
  - SOPEC – Electric Aggregation Program Plan of Operation & Governance
  - Ordinance 46-2023
- September 11 Staff Report – Proposed Agreement to Join SOPEC, Establish Bylaws & Implement a City of Upper Arlington Aggregation Program
September 18 – Plan of Operations and Governance Public Hearing, Proposed Aggregation Program Second Reading / Public Hearing
- Watch the Meeting Video (Select Items 4A and 4B under the “Bookmarks” on the right of the screen)
September 25 – Proposed Aggregation Program Third Reading / Public Hearing / Council Action – legislation unanimously approved
- Watch the Meeting Video (Select Items 5A and 5B under the “Bookmarks” on the right of the screen)

ASSOCIATED DOCUMENTS

To view documents associated with this proposal, search our Archives Portal – Development Projects, using the following Project Names: Electric Aggregation

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FREQUENTLY ASKED QUESTIONS

How do I enroll in the program?
If you are an eligible resident or small business in Upper Arlington, you will automatically be enrolled in the SOPEC Electric Aggregation Program for the City of Upper Arlington. You do not need to take any action. However, you will receive a joint notice from the City and SOPEC which will detail the electric aggregation program’s terms.

How do I get out of the program?
If you decide the program is not right for you, you have the option to opt-out. Upon receiving the joint notice from SOPEC and the City, you will be given a 21-day window to make your decision. Instructions for opting out will be clearly outlined in the notice. If you miss the 21-day window, do not worry, you can also choose to leave the program at any time for free. If you would like to leave, you can call Customer Care at 1-877-648-1937 and will be returned to AEP Ohio’s standard service offer rate.

What if I just want “brown” energy?
While the default option for the program is 100% Renewable Energy, there is a “brown” fossil fuel energy rate available. To enroll in this option, you will need to call Customer Care at 1-877-648-1937.

How will my electric bill look different?
The main change you will notice is the electricity supplier’s name listed on your bill will say AEP Energy when in the SOPEC Electric Aggregation Program for the City of Upper Arlington. AEP Energy is SOPEC’s supplier. Additionally, the rate charged for your electricity supply will be based on the SOPEC Electric Aggregation Program for the City of Upper Arlington rate (7.203 cents per kWh starting in January of 2024 through June of 2025) instead of AEP Ohio’s standard service offer rate.

Will I get another bill?
No. You will continue to receive just one electric bill from AEP Ohio as you always have. The only difference is that SOPEC’s supplier, AEP Energy, will be listed as your electricity supplier instead of your previous supplier. When in the program, your electricity supply rate will be based on the SOPEC Electric Aggregation Program for the City of Upper Arlington rate (7.203 cents per kWh starting in January of 2024 through June of 2025)

What if I decide to get out of the program in a year from now?
Residents and small businesses always have the choice to exit the program. You can also choose to leave the program at any time for free. If you would like to leave, you can call Customer Care at 1-877-648-1937 and will be returned to AEP Ohio’s standard service offer rate.

How does aggregation affect AEP?
The SOPEC Electric Aggregation Program for the City of Upper Arlington only impacts the supply portion of your electricity service. AEP Ohio will continue to deliver electricity to all program participants and it will manage the wires and other infrastructure. The supplier or source of the electricity will be determined by the SOPEC Electric Aggregation Program for the City of Upper Arlington. Aggregation allows communities like Upper Arlington to negotiate rates collectively, often securing better terms. However, AEP Ohio remains the utility responsible for delivery, service reliability, and other customer service aspects.

What is a deregulated energy market and electric aggregation?
Ohio has a deregulated the energy market, meaning you can choose where you buy your electricity generation. For example, you can select to purchase electricity from renewable sources or fossil fuels for your home or business. Some residents may have already selected a supplier for electricity, and you may notice marketers mailing you letters to purchase energy from them. You do not need to purchase energy from these marketers, because currently, AEP Ohio, will automatically provide default electricity supply for you. Importantly, AEP Ohio will continue to provide electricity to your home or business regardless of where you purchase your electricity supply.

Who is SOPEC?
SOPEC (Sustainable Ohio Public Energy Council) is a non-profit public service organization that the City has partnered with to run Upper Arlington’s electric aggregation program. They go out to market on behalf of Upper Arlington residents to try and get the most competitive supply price.

What if I currently have a supplier contract in place? Will I still be automatically opted in?
No, any residents who already have a supply agreement in place (if you chose something on energychoice.ohio.gov) or if you are currently a PIPP customer, you are not opted in.

What are the benefits?
The main benefit of aggregation is the City of Upper Arlington can achieve a more sustainable electricity supply for our residents by requiring a 100% renewable energy program content at a competitive price for our residents and businesses.

It says its supply is 100% ‘green’. How is this defined? What are the sources? Is it the same thing as 100% “carbon free”?
The base power purchased on the open market by AEP Energy for SOPEC comes from various sources. However, all SOPEC communities also utilize what are called Renewable energy certificates (or credit) (“RECs”) to obtain electric aggregation programs featuring 100% renewable energy. SOPEC utilizes what are known as Green-e® RECs, which are the gold standard RECs and predominantly are made up of Midwest wind SOPEC and AEP Energy investigate the RECs to ensure no environmental or fishery concerns. Carbon-free is a different concept and includes nuclear sources. SOPEC only utilizes wind, solar, and hydropower for its RECS.