Painesville City Council may ask voters whether they want to create an opt-out gas aggregation program this spring. Council is currently considering legislation that would place the question on the ballot for the May 5 primary election. It will need to pass the legislation before Feb. 4 to meet the deadline to get it on the ballot. Northeast Ohio Public Energy Council representative Ross McDonald discussed aggregation at council’s Jan. 20 meeting. NOPEC is an electricity and gas aggregator. McDonald said that while individual customers “typically have no leverage in the gas market,” a group of aggregated customers can have more leverage. Aggregators can also purchase supply in “lower-risk market windows” and “prioritize price stability over short-term speculation.” He added that if the program is approved, it would not create a city utility or cost the city additional money. The city would also not purchase gas, set prices or assume risk. Council would have authority to manage the program, McDonald said. The proposed city legislation states that all eligible residents would be provided with a notice before they would be enrolled in the plan. The notice would tell customers about the program’s rates, charges and terms and conditions. Residents would be enrolled automatically unless they opt out ahead of time. There would also be a notice every two years asking residents if they want to opt out of the program. McDonald added that NOPEC lets customers come and go at no cost. The gas aggregation would not initially include customers who are in a contract with another provider. If the city goes with NOPEC, McDonald said the aggregator would search every other month for gas customers who move to the city or who are no longer under a contract, and send them the information about the opt-out program. He said that an aggregation program typically takes 75 to 90 days to establish after approval. Approval on the May ballot would allow purchasing to take place in August or September. Waiting until the November ballot would mean that purchasing would take place during the “worst purchasing window” in the winter. McDonald said that NOPEC’s participation rate is typically 70 to 85 percent. The ballot language that would go before voters would give the city the authority to start an aggregation program but would not mention any specific aggregators. The council legislation would let City Manager Doug Lewis enter an agreement with NOPEC, and a city manager’s report from Assistant City Manager Tony Zampedro also mentioned that the city would aggregate gas accounts with NOPEC. Lewis told council that he sees the city going with a broker or choosing NOPEC. The city manager report listed benefits of partnering with NOPEC, including low-interest loans on energy projects, funding for qualifying energy audits for small businesses, energy efficiency community grants, renewable content electric programs, sustainable technical assistance resources and renewable energy development. The legislation’s next reading, and the only scheduled one before the Feb. 4 deadline, is on Feb. 2. That council meeting is set to start at 7 p.m. at Courtroom 1, Painesville City Hall, 7 Richmond St. The legislation will be on second reading on Feb. 2. In order for council to pass it that evening, at least six of its seven members will need to be present and in favor of suspending the three-reading requirement, and at least five will need to vote to actually approve the legislation. Council President Jim Fodor encouraged community members with questions to reach out. He said the city would try to have the questions answered. ...read more read less