Government Aggregation Program for Canaan Township, Morrow County, Ohio
Community Choice Aggregation (CCA), also known as Government, Municipal, or Community Energy Aggregation (depending on the state), is a program that allows local governments to bid and choose an energy supplier for their communities. Community Aggregations have proven to be an effective means for many municipalities to provide exclusive pricing on gas or electric rates for residents and small businesses and support the sustainable energy goals of the community. Aggregation programs are currently authorized in seven states, however, most of these CCA legislations were passed by voters in the early 2000s which is often why so many people aren’t aware of Community Choice Aggregation or that their community participates in such a program.
How does it work? While the local utility (Ohio Edison) still handles the delivery (distribution) to homes, schools, and local small businesses, communities can leverage their collective purchasing power to get a competitive market rate for its members. It’s important to note that participation is voluntary, and residents and small businesses have the option to opt out within the opt out period or may leave the program at any time.
Canaan Township currently has an agreement with Energy Harbor to provide services (electric supply) to residents of Canaan Township who have Ohio Edison as their electric company. Electric Aggregation was passed by Canaan Township voters in 2010. The current contract with Energy Harbor was renewed in 2019 by the Canaan Township Trustees. All Canaan Township residents with Ohio Edison as their electric provider can opt in or out of this program. The current contract with Energy Harbor is 4.94 cents per kwh (kilowatt hour) if you have opted to use them as your energy supplier. The current contract runs through the end of 2023 and then a new price will need to be negotiated. With rising energy costs, you can be certain the price per kwh will increase. A quick search of energy suppliers and current rates will confirm that prices are going up. If Energy Harbor is your current supplier through the Government Aggregation Program, your price of 4.94 cents per kwh is good until December 2023.
The following letter from FirstEnergy Corp. should provide some guidance for those who currently have Ohio Edison as their company that both delivers AND supplies electricity to their home.
"FirstEnergy Corp. (NYSE: FE) is encouraging customers of its Ohio electric companies – Ohio Edison, The Illuminating Company and Toledo Edison – to evaluate electric supply offers from competitive suppliers that fit their budget and protect against rising energy prices this summer. Due to the results of recent competitive auctions, FirstEnergy customers who rely on their electric company for all aspects of service are expected to see an increase in the price they pay for electric generation beginning June 1.
Customer bills are divided into two parts: a charge from a FirstEnergy Ohio electric company for delivering electricity to a home or business, and a separate charge for the actual electricity used by a customer. For the second component, customers can shop and choose a competitive energy supplier that may be able to offer a lower price for generation. The electric company is required to purchase electricity through a competitive auction process for “non-shopping” customers who do not choose an energy supplier, and the rate is reflected in the “price to compare” listed on their monthly bills. FirstEnergy electric companies do not control the price of generation, which is provided to customers at cost. Effective June 1, and subject to approval from the Public Utilities Commission of Ohio (PUCO), the prices to compare for each of FirstEnergy’s Ohio electric companies’ residential customers will be: Ohio Edison: 12.39 cents/kwh Illuminating Co.: 12.40 cents/kwh Toledo Edison: 12.41 cents/kwh
A typical non-shopping FirstEnergy Ohio residential customer using 750 kilowatt hours can expect to see an increase to their total bill of approximately 47% from May to June. The prices, which update annually on June 1, are seasonal, with summer pricing in effect for the months of June through August, and winter pricing in effect for all other months. Winter prices are expected to remain higher than those seen this past winter.
“With energy rates elevated as we head into the hot, summer months, now is a great time to review your options so that you can select a rate or program that works best for you and your family,” said Mark Jones, vice president of customer engagement for FirstEnergy. “By selecting a competitive energy supplier that offers a rate lower than the price to compare on your bill, you may be able to pay less each month.”
To explore alternative electricity supplier options, customers can visit the PUCO’s Apples to Apples tool online at www.energychoice.ohio.gov. As customers evaluate their “price to compare” against alternative supplier offers, they should consider the price, plan structure (fixed or variable rate), contract terms and conditions, and any taxes, charges or fees that may apply. They can also explore ways to conserve energy this summer by visiting www.firstenergycorp.com/save_energy.
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company’s transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on Twitter @FirstEnergyCorp."