Office of the Ohio Consumers' Counsel

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Aggregation Process

What steps are involved in opt-out energy aggregation?

First, the local government must adopt an ordinance or a resolution authorizing aggregation and specifying that opt-out aggregation is the model to be used.

Second, the ordinance or resolution must direct the county board of elections to submit the question of opt-out aggregation to the voters at the next primary or general election. The local government must certify a copy of the ordinance or resolution to the board of elections at least 75 days before the election in order for the issue to be on the ballot. A majority of the voters must approve the issue in order for opt-out aggregation to occur.

Third, after the issue passes, the local government must develop a plan of operation and governance for the aggregation program. Before adopting the plan, the local government must hold two public hearings on the plan. Before the first hearing, the local government must publish notice of the hearings once a week for two consecutive weeks in a newspaper of general circulation in the jurisdiction. The notice must summarize the plan and state the time, date and location of each hearing. One of the items in the plan of operation and governance should be a procedure for individuals who wish to opt out of the pool.

Fourth, the local government, either by itself or jointly with other local governments, must secure bids, negotiate with suppliers and obtain a price for energy service.

Fifth, once a plan has been adopted, an opt-out disclosure notice must be sent to all customers stating that the customer will be enrolled automatically in the aggregation program and will remain enrolled unless that customer opts out by using the procedure outlined in the plan. The disclosure notice must allow customers at least 21 days to opt out and must summarize the program including the rates, charges and terms of enrollment.

The stated procedure also must allow any customer enrolled in the aggregated pool to opt out of the program every two years without paying a switching fee. Customers opting out may return to the utility company or choose an alternative supplier. Customers may leave the program before the two-year date, but there may be a fee involved.

What information needs to be included in the ordinance or resolution for opt-out aggregation?

The ordinance or resolution must indicate that the local government is acting under the law to negotiate and enter into service agreements for the purchase of energy, outline the procedure for holding public hearings and indicate that a notice must be sent to all customers outlining the terms and conditions of the plan and the opt-out procedure.

In addition to the information required by the local rules and by the board of elections in your jurisdiction, the ordinance or resolution for the opt-out model must refer to the corresponding Ohio Revised Code section and could contain language from the statute. The following are items that could be included in a resolution or ordinance:

The “whereas” clauses could contain the following information:

1. A statement citing legal authority for a local government to aggregate the supply of energy of its constituents.

2. A statement relating to the purpose of aggregating.

The “order” clauses could contain the following information:

1. A statement indicating that the local government finds that it is in the best interests of the city/county/township to aggregate and if the ordinance is approved by the voters then the local government is authorized to aggregate. This statement could also indicate that the local government has authority to aggregate jointly with other local governments and that customers will be enrolled automatically subject to the opt-out provisions in the statute.

2. A statement ordering the clerk to certify the ordinance with the ballot question to the board of elections not less than 75 days before the next election.

3. The ballot question should give the local government the authority to aggregate and enter into service agreements for the purchase of energy and it should indicate that each customer is automatically enrolled subject to the opt-out provisions.

4. A statement indicating that upon the approval of the electors the local government individually or jointly with other local governments will develop a plan of operation and governance for the aggregation program and that before developing the plan two public hearings must be held on the plan. The statement should also outline the procedure for holding the public hearings.

5. A statement indicating that notice would be provided to all customers before aggregating their supply of energy. The statement could include the information that must be contained within the notice sent to all customers according to the law.

Sample aggregation ordinances from local governments have been included for your review. The ordinances have been included for informational and educational purposes only and do not constitute legal advice. By inclusion in this guide, the OCC is not approving or suggesting form and content of the sample documents.