You may see aggregation, also referred to as retail choice and deregulation, as an issue on your ballot this November. Some private electric companies, like Toledo Edison, are offering short-term, discounted wholesale rate packages aimed at their customers and the customers of other investor-owned utilities. This is called “aggregation.” Townships are polling their voting residents this November to see if aggregation should be permitted in their territory. Here’s what you need to know.
How does aggregation work?
Privately owned companies can offer discounted rate packages to their customers and the customers of other investor-owned utilities. These packages are for wholesale power only. What this means is that customers will continue to pay distribution charges and other fees associated with service from their current utility. While this can be a savings to the customer, sometimes there are hidden charges and early termination penalties included in the fine print of these packages that negate possible savings.
Will this affect me?
The short answer is no. As a member of North Western Electric Cooperative, aggregation will not affect you, even if it’s passed on November 5. Electric cooperatives are not-for-profit, member-owned, and locally governed utilities that for many years have benefited from the lowest cost of wholesale power generation in the state. State legislators grant electric cooperatives exemption from participation in aggregation because they recognize our member-owned and -governed business philosophy, and our long-term approach to policy decisions, are based on what is in the best interest of our members. Aggregation will only apply to customers of private energy companies that are offering these packages.
How should I vote for this issue if it doesn’t affect me?
Even though the results of the aggregation issue won’t impact you, your vote is still important and could affect others who are served by investor-owned utilities. We encourage you to use your voting power based on your personal opinions on aggregation. If you don’t have a strong opinion, consider talking with your neighbors whom the policy would affect to get their thoughts and feedback.
NWEC is proud to offer and continue offering electricity that is at-cost and reliable to our members, without needing to offer special rate packages. Our members own and govern the co-op, and their best interests are always our top priority. This means there’s no fine print and no penalties, just honest, reliable, and affordable service. That’s our promise to you.
You can learn more about retail choice (aggregation) here.