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Gas Aggregation Update | FAQs | Program History | Plan of Operation/Governance
PUCO | Ohio Consumers' Council Gas Aggregation - Program History2008 Program Details The 2008 contract will continue with Interstate Gas Supply for the service period January 1, 2008 through December 31, 2008, at a rate of 1.039 per hundred cubic foot (ccf). In order to provide residents with the opportunity to ask questions and offer comments about the City's natural gas aggregation program, which is offered through a conglomeration of local municipalities known as the Central Ohio Public Energy Council (COPEC), a series of fall public meetings were scheduled: - Upper Arlington Public Meeting - Monday, October 22 - Gahanna Public Meeting - Thursday, November 1 2007 Program Details The 2007 contract continued with Interstate Gas Supply for the service period January 1, 2007 through December 31, 2007, at a rate of 1.189 per hundred cubic foot (ccf). During late October/early November, existing customers and eligible customers received a notice from IGS with information including the 2007 price offered through the City’s aggregation program. If a customer wished to participate, no action was necessary. If a resident did not want to participate in the program, he/she had to complete and return the opt-out form provided with the notice by the deadline stated in the letter. Click here to view a copy of the "eligible" customer letter. 2006 Program As the 2006 term approached, volatility in the energy market affected the City's Natural Gas Aggregation Program. Initially, faced with unpredictable natural gas prices when enrollment activities for 2006 needed to occur, it was initially decided to move forward with an adjustable month-to-month rate until an acceptable fixed rate could be locked in for the remainder of the contract. In mid-November, the City's natural gas provided, Interstate Gas Supply (IGS) proceeded with sending out notification letters to that effect. Prices then fell to acceptable levels and the City's aggregation program was able to lock in a rate of 1.352 per ccf for the 2006, in advance of the start of the 2006 term. Follow up notification letters were immediately sent out to existing customers and eligible customers. 2005 Program The City contracted with Interstate Gas Supply (IGS) of Dublin, Ohio for the provision of natural gas at a cost of $0.889 per cubic foot (ccf) for the 2005 program. This rate was less than Columbia Gas of Ohio’s December 2004 rate of $0.92. Residents receiving their natural gas from Columbia Gas at the time of the program's inception were automatically enrolled in the program unless they chose to “opt out,” by returning the opt out notice mailed to homes during the week of December 20, 2004. That opt out notice included the program’s cost, terms and conditions for participating, and details on how to opt out of the program if so desired. The deadline for opting out was Monday, January 10, 2005. Residents who were purchasing their natural gas from a provider other than Columbia Gas or IGS at the time the program was being established, had the option of contacting IGS directly for details of the program and their enrollment options. Residents already under contract with IGS but at a rate higher than $0.889 were advised to contact IGS to have their rate converted to Upper Arlington’s aggregation rate (IGS did not automatically convert existing Upper Arlington customers to the aggregation rate). In November 2003, Upper Arlington voters authorized the City to become a natural gas aggregator on their behalf. This process was completed with certification from the Public Utilities Commission of Ohio (PUCO) in the summer of 2004. Aggregation is a process that allows consumers to form a group, creating greater buying power. As a natural gas aggregator, the City can negotiate rates, reliability and service needs on behalf of the aggregate pool. Upper Arlington further increased its buying power by partnering with the cities of Bexley, Dublin and Gahanna. The natural gas supply is provided by IGS, with pipelines owned and maintained by Columbia Gas of Ohio. Gas bills continue to come from Columbia Gas, but now bill for the gas supplied by IGS plus sales tax. Establishment of Gas Aggregation Program The following information provides a summary of the process involved in seeking certification as a gas aggregator, selecting a supplier and providing Upper Arlington residents with the opt-out program. 1. In July 2003, the community entered into an agreement with AMPO, Inc. to develop and implement a municipal gas aggregation program. 2. On July 30, 2003, Upper Arlington City Council passed an ordinance to submit opt out municipal gas aggregation to the electors at the November 2003 election. 3. After Council approval, ballot language was submitted to the County Board of Elections not less than 75 days prior to the election. 4. Consumer education was conducted by the City in the form of town meetings, direct mail pieces, news releases, information on municipal Web sites and in municipal newsletters or bill stuffers. 5. The ballot issue needed to receive a simple majority (greater than 50%) for approval,which occured at the November 2003 ballot. 6. Following voter approval and partnership with AMPO, the City developed a draft Plan of Operation and Governance. 8. The City developed and published notices of two public hearings on the Plan of Operation and Governance. The statute states: “Before the first hearing, the legislative authority or board shall publish notice of the hearings once a week for two consecutive weeks in a newspaper of general circulation in the jurisdiction. The notice shall summarize the plan and state the date, time and location of each hearing.” The notice was a paid advertisement. 9. In 2004, the City held two public hearings on the draft Plan of Operation and Governance, following publication of the second notice in the ccommunity's weekly newspapers. 10. Council adopted the Plan of Operation and Governance by Ordinance (40-2004)on April 12, 2004. 11. An opt out notice was prepared to be mailed to all participating consumer classifications. 12. The City completed the PUCO application for governmental aggregator certification, including copies of the ordinance authorizing the formation of the governmental aggregation program, newspaper notices for public hearings on the Plan of Operation and Governance, ordinance adopting the Plan of Operation and Governance, the final Plan of Operation and Governance, opt out notice, and the agreement between AMPO, Inc. and the community. The completed application was executed by the Manager and notarized. 13. The executed governmental aggregator certification application was filed with the PUCO May 3, 2004. 14. The PUCO had 30 days to act upon the application or it is automatically approved. On June 3, 2004, the PUCO sent a certificate to the community that is valid for two years (a draft application can be filed with the PUCO as long as any final amendments are filed within the 30-day approval period). 15. Natural gas supply requests for proposals or requests for quotations were prepared and submitted. 16. The resulting natural gas supply proposals were evaluated. 17. An agreement was negotiated with potential certified Competitive Retail Gas Services Providers to serve the municipal gas aggregation program. 18. Upper Arlington City Council passed Ordinance 147-2004 on August 23,2004, authorizing the City Manager to enter into contract with Interstate Gas Supply. 19. Interstate Gas Supply (CRNGS Provider), AMPO, Inc., the community and the distribution utility worked together to identify all eligible consumers within the city/village corporation limits. 20. In December 2004, opt out notices were mailed to all eligible customers detailing the prices, terms and conditions of service to each eligible consumer within the corporation limits. 21. After the 21-day opt-out period had elapsed, IGS began enrolling consumers in the program. Updated 11/07 City Manager's Office City of Upper Arlington 3600 Tremont Road Upper Arlington, Ohio 43221 Phone: 614-583-5046 Fax: 614-457-6620 www.ua-ohio.net |
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