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Utilities aggregation deadline in Marietta this month

Utilities aggregation is nothing new for Marietta residents but the deadline to opt out is coming up this month.

“There can be some lower offers people can take advantage of but with aggregation you’ve got a fixed rate over a longer term with a reliable supplier,” explained Tom Bellish, the negotiator through Buckeye Energy Brokers.

Bellish negotiates the cost of deregulated generation or supplier charges for city electric and natural gas. A new contract is negotiated for that supplier rate every two to three years and current rates within the program are 5.75 cents per kilowatt hour for electric and $3.69 per mcf for gas. Outside the program the current default rate for AEP’s plan six cents per kilowatt hour.

But the price for those inside the program will drop by the November bill cycle to 5.49 cents per kilowatt hour for electric and $3.33 per mcf for gas.

“You get teasers in the mail periodically with lower rates but those often are just for a couple of months, while with aggregation we try to keep your bill steady and with a supplier that’s proven good customer service,” explained Bellish. “You’ve got the advantage of a fixed rate that isn’t going to go up over three years plus residents can usually save from the going rate.”

The new contracts automatically apply to local bills at no cost unless residents chose to opt out. Opting out is free for the next contract cycle until Aug. 18 if the opt-out form is postmarked by the deadline, but after that date the termination fee is $25. The paperwork to opt out is arriving by mail with the electric bills of city residents.

Electric rates for usage will stay through October 2020 and natural gas rates will remain through October 2019 but the aggregated supplier cost is only part of one’s bill.

“There are two components,” explained Marietta Assistant Safety-Service Director Bill Dauber. “Generation costs are aggregated through our broker Tom Bellish using the Marietta area as a group purchasing power going to these suppliers to get a better rate. The other portion of your bill is the regulated charges through the Public Utilities Commission.”

The purchasing power essentially acts as a group weight to lower prices by guaranteeing a higher usage.

“But how much juice you use isn’t the biggest portion of your bill,” said Dauber.

Dauber explained regulated charges included transmission service, distribution service, customer charges, retail stability riders, deferred asset phase-in riders and a power purchase agreement rider.

“Over 50 percent of your bill solely exists because you’re a customer,” he said. “That’s why we as a city are looking to combine bills and meters to lower the essentially administrative cost of that and get it closer to a rate based on our use.”

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