Pass: 36,129 / 59.31% Yes votes ...... 24,787 / 40.69% No votes

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Impartial Analysis from League of Women Voters of the Cincinnati Area

EXPLANATION: Issue 44 asks if the City of Cincinnati shall have the authority to aggregate the retail electric loads located within the incorporated areas of Cincinnati thereby instituting an opt out electric service aggregation program and enter into service agreements for the sale and purchase of electricity. Residential, small businesses and other eligible electric consumers in the City would be automatically included in the program except where any person chooses to opt out.

An opt-out aggregation program requires voter approval at an election. This issue was placed on the ballot by an ordinance passed by City Council.

WHAT WOULD THE ISSUE DO: If voters approve an aggregation program, the City of Cincinnati would be authorized to aggregate retail electric service loads located within the incorporated area of the City. The City Manager on behalf of City Council would be authorized to enter into service agreements to facilitate the sale and purchase of service for retail electric loads and may exercise that authority jointly with any other political subdivision of the State of Ohio in order to establish an Electric Service Aggregation Program.

If voters approve an aggregation program, the City Manager on behalf of City Council would be authorized to individually or jointly with any other political subdivision of the State of Ohio, develop a plan of operation and governance for the Electric Service Aggregation Program. At least two public meetings would be held on the plan prior to a vote by Council on its adoption. No plan adopted by Council shall aggregate any retail electric customer in the City unless it in advance clearly discloses to the person whose retail electric service is to be aggregated that the person will be enrolled automatically in the Electric Service Aggregation Program and will remain enrolled unless the person elects by a stated procedure not to be enrolled. The disclosure shall state prominently the rates, charges, and other terms and conditions of enrollment. The stated procedure shall allow any person enrolled in the Electric Service Aggregation Program the opportunity to opt out of the program once every three years, without paying a switching fee. Any person that opts out of the Electric Service Aggregation Program following the procedure shall default to the electric distribution utility providing distribution service for the per- son's retail electric service load, until the person chooses an alternative supplier.

BACKGROUND: Beginning in 2001, Ohio's electric deregulation law gave local governments a way to se- cure savings for residential and small commercial customers through a process known as opt-out electric aggregation. Energy aggregation has allowed local governments to give constituents additional electric choices.

Under Ohio Revised Code (ORC) 4928.20 the City of Cincinnati, by and through City Council is authorized to establish an opt-out electric service aggregation program for the benefit of electric service consumers living in the City. Municipal aggregation is the process in which energy is sold to consumers who have joined together in a buying group through their local government. Aggregated groups may reduce a supplier's marketing and administrative costs and may be able to negotiate discounts on electric energy prices. The aggregated group would remain customers of the electric utility company. The new electric energy supplier and rate would appear on the utility bill. The local utility still provides power delivery, maintains and reads meters, and restores power during outages. Customers receive only one bill from their local utility that includes the discounted electric generation charges.

The electric service aggregation program does not apply to a customer who has opted out, or is in contract with a certified electric service company, or has a special contract with an electric distribution utility, or is not located within the governmental aggregator's governmental boundaries among other criteria.

In Hamilton County several municipalities and townships have approved electric opt-out aggregation ballot measures.

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• "Impact Cincinnati" discusses Energy Aggregation (10/27/11) - Features Rachael Belz and Jim Drummond

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