2016 Update Green Township Residents and Small Businesses
Natural Gas Aggregation Rate:
Constellation Energy Services will be locking in a flex down rate of approximately .461/ccf for Green Township’s aggregation customers from December 2016 to April 2017 meter reads. Rates could go even lower depending upon market conditions, but no greater than this rate.
Constellation Energy Services (formerly Integrys Energy Services, LLC),. Constellation will continue to supply natural gas for the aggregation program.
Constellation will offer a monthly variable rate during the warm summer months for the program term. The monthly variable rate is based on the NYMEX gas futures monthly settlement price plus a delivery adder and may change monthly based on current market conditions. Residents may choose to exit the program at any time without penalty by calling Constellation toll free at (855) 838-5606 and requesting to exit the program.
Residents who are newly eligible or who previously “opted out” may request to enroll in the aggregation program at any time. Constellation will try to accommodate residents in this case, but reserves the right to decline late enrollments depending on market conditions.
To “opt out” or enroll in Green Township’s Natural Gas Aggregation Program, or for specific questions, call Constellation toll free at (855( 838-5606, or visit their website http://www.constellation.com for updated rates and additional information.
Electric Aggregation Rate:
The current electric aggregation rate is 5.99 cents per kilowatt hour in Green Township’s Electric Aggregation Program. Electric rates increased slightly due to additional charges for “capacity costs” for utility companies to construct new energy generating facilities. The new rate is good for three years until June 1, 2017. Duke Energy Retail Sales, LLC who previously provided the electricity, was acquired by Dynegy Energy Services in April , 2015.
If you need to find out if you are enrolled in the Electric Aggregation Program, call Dynegy Energy Services at #1-513-762-8226
Governmental Energy Aggregation: Local Community Buying Power
Aggregation is when a group of customers join together to form a single, larger customer base that buys energy for its members. A large buying group may be able to get a better price for the group members than you can get on your own.
What is Governmental Aggregation?
Ohio’s laws allow for communities – such as townships, to form the aggregated buying groups on behalf of their citizens. The governmental aggregator chooses an outside supplier for all of the customer-members in its group. Aggregation programs can be formed to buy natural gas, electricity or both.
All governmental aggregators buying electricity must be certified by the PUCO. Communities that aggregate to buy natural gas are required to be certified by the PUCO unless they aggregate under an Ohio Constitution provision which allows “home rule” or the right for communities to take action under their own charters. If an aggregator is going to provide natural gas and/or electric buying services, it must be certified separately for each industry. Certification by the PUCO, means they have met strict requirements for doing business in Ohio. Therefore, you can participate with confidence.
The law allows for opt-in aggregation or opt-out aggregation.
Opt-in aggregation is a program that permits each customer to sign up individually to participate in the program. If the local government chooses Opt-in aggregation, it can proceed to develop a plan and start signing up customers. The plan must include all rates and terms for customers to consider when deciding to join.
Opt-out aggregation is a program that automatically enrolls all local residents, unless they individually opt-out of the program (choose not to be included). If a community chooses this form of aggregation, a number of steps are required:
- A majority of voters must authorize opt-out aggregation in an election. The issue appears on a primary or general election ballot for your consideration.
- If authorized by a majority of the vote, the local government must form a plan of operation and management. They must also hold at least two public hearings to allow customers to voice any concerns over the proposed plan.
- Once the local government has adopted the plan, each customer to be aggregated must be notified that they will be automatically enrolled in the program unless they specifically elect not to participate. This notification must also state the rates, charges, and other terms and conditions of enrollment in the program. The opt-out notice is usually a letter accompanied by a post card to be mailed back if you do not want to participate or sometimes, a phone number to call or web site to visit to opt-out.
- Natural gas aggregation customers may opt-out every two years without paying a switching fee. Electric aggregation customers may opt-out every three years without paying a switching fee.
Deciding to stay with the Aggregation
When deciding to join an “opt-in” government aggregation or deciding whether to stay in an “opt-out” government aggregation, here are some things to think about:
- The goal of the buying group –will the aggregator be looking for the lowest price, sources used to generate the electricity, or additional services when finding a supplier?
- Number of group members – larger groups will usually have better “buying power”.
- Length of the contract – how long is the contract and how will it be renewed?
- Terms and conditions – be sure you read and understand them, including membership requirements, how you will be billed, and any fees.
For both natural gas and electric aggregation, customers who are already enrolled in the Percentage of Income Payment Plan (PIPP – a payment plan for past-due bills) are NOT eligible.
For natural gas aggregation, the only other customers who are not eligible to participate are those that are already under individual contracts with suppliers as part of a natural gas choice program. These customers will not appear on eligible customer lists provided to the governmental aggregator or the governmental aggregator’s chosen supplier.
For electric aggregation, most customers are eligible and their names will appear on customer lists provided to the governmental aggregator or its chosen supplier. It is important to note that if recently switched to a supplier and your community aggregates, you should return the opt-out notice if you do not wish to be switched to the aggregations’ supplier. That is a decision for you to make. You will want to talk to your chosen supplier if you consider switching to the aggregation’s supplier to find out if there are any penalties for the early cancellation of the contract.
Dynegy Energy Services FAQ’s
Typically, utility electric rates are set based on the “average” or “typical” customer group – residential, commercial or industrial. Your business isn’t average, so that rate might not be as low as the rate that a competitive supplier can offer you. Get a FREE price quote from Dynegy Energy Services so you can compare your current utility rate to a competitive market rate and make the best decision for your business or home.
Even though both companies are owned by Duke Energy Corporation, Dynegy Energy Servcies and Duke Energy are distinct entities. Duke Energy is regulated by the Public Utilities Commission of Ohio (PUCO) and must charge prices approved by the PUCO. Duke Energy’s generation price formula was approved by the PUCO back in 2011 and cannot change prior to the end of 2013.
Dynegy Energy Services is a competitive supplier of electricity and can sell electricity at market prices. Because your electricity supplier would change from Duke Energy to Dynegy Energy Servcies, your supplier will be a unique and different company, and enrollment is necessary.
With natural gas, the story is the same. Duke Energy is regulated by PUCO and can only change prices as approved by PUCO. Integrys Energy Servicesc is a competitive supplier of natural gas and can sell gas at market prices. Because your supplier will be a different company, enrollment is necessary.
Put simply, there are three major components in supplying electricity:
In Ohio, customers are free to choose who supplies the Generation and Transmission portion of the electricity. They can purchase these services through their regulated electric distribution utility or from a Certified Retail Electric Service (CRES) provider, such as Duke Energy Retail.
The natural gas industry is very similar. Three major components are involved in supplying gas to your home or business:
In Ohio, customers are free to choose who supplies the Generation and Transmission portion of their natural gas. They can purchase these services through their regulated natural gas distribution utility or from a provider on the competitive market, such as Integrys Energy Services.
Current market conditions have resulted in lower wholesale electricity and natural gas prices. This presents an opportunity for many businesses to take advantage of today’s lower prices and begin saving versus the generation price offered by your local electric and gas distribution company.
Duke Energy Retail does not charge a fee for switching; however the local utility may charge a fee.
Billing and Payment
You will continue to receive one bill each month from your local utility. The amount that you owe to Duke Energy Retail will be separately stated on that bill and your payment for Generation service will be forwarded by your local utility to Duke Energy Retail.
You will continue to call your local electric or gas distribution company for all service related issues, such as outages.
No. The generation, transmission and distribution of electricity and natural gas are regulated in that state and Dynegy Energy Servcies cannot sell electricity there.
Not at this time.
Begin Saving Now
If you enroll with Dynegy Energy Services, you have 7 days to rescind the contract. If you would like to switch back to Duke Energy Ohio, or any other company, there is no cancellation or termination fee if you decide to cancel your electric aggregation participation in the future.