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HomeMy WebLinkAbout035-01 Ordinance RECORD OF ORDINANCES Dayton Legal Blank Co Farm No. 30043 Ordinance No ...........................3.5.-0.1...................... Passed ......Y..:~...... AN ORDINANCE ADOPTING A PLAN OF OPERATIONAND GOVERNANCE FOR A MUNCIPAL ELECTRIC AGGREGATION PROGRAM AND AUTHORIZING THE CITY MANAGER TO SUBMIT SAID PLAN TO THE PUBLIC UTILITIES COMMISSION OF OHIO. WHEREAS, the Ohio Revised Code Chapter 4928 authorizes municipal corporations, townships and counties to aggregate the retail electric loads located in the respective jurisdictions and to enter into service agreements to facilitate for those loads the purchase and sale of electricity; and WHEREAS, such legislative authorities may exercise such authority jointly with any other legislative authorities; and WHEREAS, governmental aggregation provides an opportunity for residential, institutional and small business customers collectively to participate in the potential benefits of electricity deregulation through lower electric rates which they may not otherwise be able to have individually; and WHEREAS, Dublin City Council seeks to establish a governmental aggregation program with opt-in provisions pursuant to Section 4928, Ohio Revised Code (the "Aggregation Program), for resident, business, institutional and other consumers in the City and in conjunction with any other municipal corporation, township, county or other political subdivision of the State of Ohio, as permitted by law; and WHEREAS, Dublin City Council has previously adopted Resolution 12-01 which, endorsed the concept of municipal aggregation of electric; advocated endorsement of a natural gas provider; authorized the creation of a proposed Plan of Operations and Governance, directed that two public hearings be conducted on said plan; and authorized cooperation with other governmental aggregators. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, of the elected members concurring that: Section 1. Dublin City Council declares its intention to act as an opt-in aggregator under the terms of the Ohio Revised Code Section 4928 under which the City will, on a voluntary basis, enroll any 'i resident, business, institution and other consumers in the City owning, occupying, controlling or i using an electric load center within the city limits into the City's aggregation program. ~ Section 2. Dublin City Council affirnis that two public hearings were conducted by the City's Community Services Advisory Commission on the proposed Plan of Operations and Governance and the said plan is hereby adopted. Section 3. The City Manager is hereby authorized to file the Plarz of Operations and Governance with the Public Utilities Commission of Ohio in order that the City be authorized/certified as a governmental aggregator. Section 4. The City Manager is hereby authorized to negotiate a service agreement, subject to Council's review and approval, to facilitate the sale and purchase of electric power for those electric loads within the City limits and, if advantageous to the City, to do this in conjunction with any other municipal corporation, township, county or other political subdivision of the State of Ohio, as permitted by law. Section 5. The City Manager is hereby directed to research and make a recommendation to Council regarding a natural gas aggregation program. Passed this day of ~ , 2001. ~ ~ , Y~ayor -Presiding Officer ATTEST: ~~-'1'~~'t~~.---~~ V~ ~ ~P"l~te1S~ ccrrtify tltut codes of 4his Orrlnance/Resolution were posted i the Clerk of Council ~`ify ©f Dublin in oceordance w=tla Section 731.25 of the fl3:io Revised C de. ~p,pfj,IC6r,rk Council,. Qublin, Ohio Department of Service 6351 Shier-Rings Road • Dublin, Ohio 43016-1243 CITY OF DUBLIN Phone: 614-761-6570 Fax: 614-761-6512 M e m o To: All Members Dublin City Council ~ , ~-yam From: Timothy C. Hansley, City Manager,, Initiated by: Dana L. McDaniel, Assistant City Manager/Director of Service Date: March 15, 2001 Re: Ordinance #35-01 Staff recommends Council pass Ordinance No. 35-01, attached. Similarly, on February 20`I', 2001, Dublin City Council passed Resolution 12-01. This Resolution did the following: 1. Endorsed the concept of becoming a governmental aggregator for electricity and advocating a natural gas provider. 2. Directed the City Manager to develop a proposed Plan of Ope~~ations and Governance for an opt-in program. 3. Directed the Community Services Advisory Commission to conduct two public hearings on the proposed Plan. 4. Authorized the City Manager to work with other municipalities. Ordinance No. 35-01 serves as the formal mechanism to adopt the Plan. of Operations and Goverr~aance, attached, and authorizes the filing of the plan with the PUCO. Also attached, please find a copy of a slide presentation that summarizes the key points of the Plan of Oper°ations and Governance. Two public hearings, as required by law, were conducted by the City's Community Services Advisory Commission. The Ordinance also authorizes the City Manager to negotiate a service agreement for electric and to do this jointly with other political subdivision(s), if possible. The City Manager will submit the service agreement to Council for review and action. It is important to note that the City will not be in the business of being an aggregator until such a time Council approves a service agreement. Ordinance No. 35-O1 also authorizes the City Manager to further research and recommend a course of action for natural gas aggregation. This is a slight change from Resolution 12-01. Resolution 12-01 endorsed the concept of advocating a natural gas aggregator in order to provide a similar consumer choice to electric. The ultimate intent of this would be to add yet another value-added service to residents, businesses and institutional gas consumers, much the same as electric aggregation. Since Council passed Resolution 12-01, House Bill 9 is under consideration by the State Legislature. HB 9, if adopted, could allow political subdivisions to aggregate natural gas in the same manner they are being permitted to aggregate electric. This is a slightly different approach than advocating a natural gas provider, as originally proposed. Indications are that this Bill will move quickly and staff will have a better understanding of its implications in the near future. Please address any questions to Dana McDaniel at 410-4751. Thank you. \\DEWPOINT\VOLI\PER\Browtl\word\DANA\MEMOS\COIJNCIL\Aggregation -Ordinance Rep.doc CSAC 2/27/01 Page 2 of 28 Daft City of Dublin, Ohio Municipal Electric Aggregation Program N Plan of Operation and Governance March 2001 _ cs~c ziz~io i Page 3 of 23 Overview On February 19, 2001, Dublin City Council adopted Resolution Number 12-O1 endorsing the concept of becoming a municipal electric aggregator and directing the City Manager to develop a Plan of Operation and Governance for a municipal "opt-in" electric aggregation program ("the Aggregation Program") as provided under Section 492.20 of the Ohio Revised Code. Under the opt-in electric aggregation program, all eligible electric consumers within the City's corporation limits will have an opportunity to participate or "opt into" the Aggregation Program. The City of Dublin's (the "City") purpose in creating the Aggregation Program is to represent local consumer interests in emerging competitive electricity markets by aggregating electric loads within the City's corporation limits (including municipal facilities) and negotiating affordable, reliable electric supplies and other related services on behalf of local consumers. The City may pursue this purpose individually or in cooperation with other entities. Many small commercial and residential electric consumers lack the knowledge and leverage to effectively negotiate power supply rates and services. A governmental aggregation program provides them with an option for professional representation and the bargaining power of a larger, more diverse consumer group that may be more attractive to suppliers, allowing them to effectively participate in the competitive process and achieve benefits. The Aggregation Program is designed to reduce the amount a consumer pays for electric energy, and to gain other favorable economic and non-economic terms in service contracts. The City will not buy and resell power, but will represent collective consumer interests to set terms and conditions for service. Through a negotiation process, the City will develop a contract with a Competitive Retail Electric Services Provider (CBEs Provider) or Providers for firm all-requirements electric service. The contract will run for a fixed term (i.e., one to five years). Once the contract has been ~ finalized, it will be submitted to the Dublin City Council for approval. Each eligible consumer within the City's corporation limits served by American Electric Po~ti~er (AEP) or FirstEnergy will have an opportunity to participate in the Aggregation Program on anon-discriminatory basis. Each consumer will receive a notice from the City detailing the Aggregation Program's rates, terms and conditions and will have 21 days to opt into or participate in the Aggregation Program. Consumers not participating in the program will remain on AEP's/FirstEnergy's Standard Offer Generation Sen•ice until such time as they select an approved CRES Provider. Once enrolled, consumers will be offered the opportunity to leave the Aggregation Program at least every hvo years ~~ithout paying switching or early termination fees. Participants ~~~ho lea~~e the _1~1~~re~aation Pro;~nu11 an~i ~~~is}1 to ren~rn. well as consumers ~~~ho move into the Cite aster the initial opt-in period ~~~ill be afforded the opportunity to enroll in the Aggregation Program. However, the City cannot guarantee rates, terms and CSAC 2/27/01 Page 4 of 28 conditions to consumers enrolling in the Aggregation Program after the initial 21-day opt-in period. Participants who relocate within the City limits will be allowed to continue in the Aggregation Program at their new location under the same terms and conditions as at their former location, provided the AEP/FirstEnergy rate classification is the same at both locations, and subject to any switching fees imposed by AEP/FirstEnergv. The City will contract with a CRES Provider to implement and operate the Aggregation Program. Contracts for power supply and other related services will be negotiated, recommended, and monitored for compliance by the City on behalf of local consumers. The Aggregation Program covers the power supply or generation portion only of a participant's electric bill. AEP/FirstEnergy will continue to deliver electricity to Aggregation Program participants' homes and businesses through their electric transmission and distribution systems as a monopoly function regulated by the Public Utilities Commission of Ohio (PUCO). AEP/FirstEnergy will also continue to install, operate and maintain their systems of poles, wires, transformers and other electric distribution components. Aggregation Program participants should continue to call AEP/FirstEnergy if their power goes out or if they have billing questions. The PUCO will continue to oversee AEP's/FirstEnergy's electric safety and reliability service standards. The City developed this Plan of Operation and Governance in compliance with Ohio law regarding municipal opt-in aggregation of electric consumers, including at least rivo public hearings prior to its adoption. Plan of Operation and Governance hrouah re O1L1t10I1 or ordinance the AaQre ation The Dublin Clty Councll shall approve t ~ s g Program's Plan of Operation and Governance in accordance with Ohio Revised Code Section 4928.20. Amendments to the Plan of Operation and Governance may be subject to Dublin City Council approval and filing with the PUCO. After adoption of the Plan of Operation and Governance, the City will file with the PUCO for governmental aggregator certification and also register as a governmental aggregator with AEP. AQare~ztion Program Itlana,ement Oversi~~ht of the Aggregation Program will be the responsibility of the C:'_~ `..~:na~ler or City Manager designee, who shall report to the ivlav~or. The City ManaU_r o~ Cite Manager designee will have the authority to develop specifications for the Aggregation Program, to 1? CSAC 2/27/01 Page 5 of 28 appoint an Aggregation Program Manager, and to select, hire and Haulage the CRES Provider. The ORES Provider and the Aggregation Program Manager will work under the direction of the City Manager or City Manager designee with the advice and counsel of the City Attorney. Due to the complexity of the electric utility industry and the uncertainties of its associated 6--' restnrcturing activities, the City Manager or City Manager designee may contract with a consultant or consultants to provide the necessary expertise to represent the City's interest in legislative and regulatory matters and/or to serve as the Aggregation Program Manager. Such services may include, but are not limited to facilitating consumer enrollment and opt-in, assisting with consumer education, addressing consumer questions and concerns, providing reports on program operation, enrollment and savings, negotiating future CRES Provider contracts, and representing the City in dealings with ORES Providers, AEP, FirstEnergy, the Ohio Legislature, the PUCO and the OCC. The CRES Provider's rates will include an administrative fee, which shall (if implemented) be collected on behalf of the City to fund the implementation and administration of the City's Aggregation Program. The administrative fee will be adjusted annually to cover the City's cost of administering the program. The fee will be reviewed annually to ensure that the amounts collected do not exceed the cost of administering the aggregation program. Selection of a CRES Provider The City will not buy and resell power to Aggregation Program participants. The City will negotiate with potential CRES Providers to provide affordable, reliable electric supplies and other electric related services on behalf of local cons~rmers. The City will consider cooperating with other governmental aggregators if it appears beneficial to do so. Through a negotiation process, the City will develop a contract with a CRES Provider or Providers for firm, all-requirements service. The Cite will contract only with a CRES Provider or Providers that meet at a minimum the following criteria: 1. Certified CRES Provider by the PUCO 2. Registered with AEP and/or FirstEnergy 3. Have a service agreement under AEP's Open Access Transmission Tariff and/or have a Service Agreement for Networl: Integration Transmission Service under FirstEnergy's or ATSI's Open Access Transmission Tariff, as appropriate, and/or have a Service agreement under FirstEnergy's `Iarket- based Rate Tariff -l. Successfully completed Electronic Data Interchange (EDIT computer system testing ~r~ith AEP and/or FirstEnergy and that CRES Prop ider's EDI computer system is capable of effectively processing Aggregation Program EDI transactions in a timely manner CSAC 2/27/01 Page 6 of 28 5. Meet standards of creditworthiness established by the City 6. Have atoll-free customer call center and Internet ~r~eb site capable of effectively handling participants' questions, concerns and disputes in a timely manner 7. Hold the City harmless from any financial obligations arising from offering electricity and/or energy-related services to Aggregation Program participants The CRES Provider's contract will run for a fixed term (i.e., one to five years) and contain all pricing, charges, switching and early termination fees etc. in clear and easily understood terms. The City will require any CRES Provider to disclose any subcontractors that it uses in fulfillment of the services described herein. The Dublin City Council will approve through resolution or ordinance the contracts entered into by the City with the CRES Provider. Electric Supply Charges The City will aggregate electric loads within the City's corporation limits (including municipal facilities) and negotiate mutually agreeable price terms with CRES Providers for affordable, reliable electric supplies and other related services on behalf of local consumers. The City may pursue this purpose individually or in cooperation with other entities. CRES Providers will supply information on electric supply charges by AEP/FirstEnergy customer rate classification or other appropriate pricing category as approved by the City. All electric supply charges will be fully and prominently disclosed in consumer enrollment materials and will be subject to approval by the Dublin City Council. Other Costs Governmental aggregation program participants served by FirstEnerav are assessed a one time, SS switching fee by FirstEnergy. In the event this fee cannot be waived, it will be paid by Aggregation Program participants. The City will not be responsible for paying FirstEnergy's switching fee. Regulated Customer Classifications and Rates AEP!FirstEnergy assign customer rate classifications, character of ser<~ice and associated regulated rates subject to PUCO approved tariffs. In addition to the CRES Provider's generation charges, consumers will continue to be billed for AEP's,/FirstEnerg~'s service and delivery charges. Although the City may participate in regulatory proceedings and represent CSAC 2127/01 Page 7 of 28 the interests of consumers regarding these regulated rates, it cannot assign or alter customer rate classifications. Initial Consumer Notification and Enrollment After contract approval by the Dublin City Council, the CRES Provider will «~ork with the City and AEP/FirstEnergy to identify all eligible consumers within the City's corporation limits. All eligible consumers will be notified of the rates, charges and other terms and conditions of participation in the Aggregation Program. Consumers will be given a 21-day period in which to notify the City that they wish to opt into or participate in the Aggregation Program. After the initial 21-day opt-in period has elapsed, all eligible consumers who have notified the City of their desire to opt into the Aggregation Program will be enrolled by the CRES Provider at the earliest date practicable. The CRES Provider will provide AEP with the required 90 days enrollment notice for consumers with demand meters. AEP consumers ineligible to participate in the Aggregation Program include those who are on a "special rate" AEP contract and consumers whose accounts are not current with AEP. FirstEnergy consumers ineligible to participate include those on "frill-service" or "non- shoppable" rates and those who have a special contract with FirstEnergy. Consumers enrolled in the Aggregation Program by the CRES Provider will receive a letter from AEP/FirstEnergy notifying them of their enrollment. Consumers will have seven calendar days to notify AEP/FirstEnergy of any objection to their enrollment in the Aggregation Program. AEP/FirstEnergy will notify the CRES Provider of consumer objections or any reason that a consumer was not enrolled in the Aggregation Program. The CRES Provider will report to the City the status of Aggregation Program enrollment on at least a monthly basis. Leaving the Aggregation Program Participants who wish to leave the Aggregation Program may do so: • During opt-out periods offered by the City at least every two years • At any other time; however a switching or early termination fee may be assessed Once enrolled, each participant will be given an opportunity to opt out cif or leave the Aggregation Program ever}' two years without pa~~ing a s« itching or earl. te:~nination fee. Consumers who choose to leap e the Aggregation Program at am~ time othe~ :a:.~n during an opt-out period offered by the City may be subject to a switching or earl~.~ ter~ni:~a~ion fee. cs.~c zizvo~ Pale 8 of z8 Any consumer who doesn't wish to participate in the Aggregation Program will remain on AEP's/FirstEnergy's Standard Offer Generation Service until such time as t1~e consumer selects an approved CRES Provider. CRES Provider Responsibilities The CRES Provider will build and maintain a database of all Aggregation Program participants. The database will include the name, address, AEP service delivery identification (SDI) number/FirstEnergy account number and may include other pertinent information as agreed upon by the City and the CRES Provider. Such information may include the CRES Provider's account number (if different from AEP SDI number/FirstEnergy account number), rate code, rider code (if applicable), most recent 12 months of kWh consumption and kW demand, and meter reading cycle. The Aggregation Program database will be updated at least quarterly. The City will have the right to access infornation in the database for purposes of auditing. The CRES Provider will provide and maintain the required Electronic Data Interchange (EDI) computer system(s) to effectively process Aggregation Program enrollments, opt outs, billing, etc, with AEP/FirstEnergy. The CRES Provider will provide a local or toll free telephone number and Internet web site for participant questions and concerns about enrollment, opt-in/opt-out provisions, billing and other Aggregation Program issues. The CRES Provider will develop internal controls and processes to help ensure that the City remains in good standing as a governmental aggregator that complies with all laws, rules and regulations regarding the same as they may be periodically amended. The CRES Provider will provide the City with the necessary data to assist the City in the filing of reports, if any, required by the PUCO, OCC or other regulatory agency. 1Vefti~ and Returning Participai:ts Participants who leave the Aggregation Program and wish to return, as well as consumers who move into the City after the initial opt-in period will be afforded the opportunity to enroll in the Aggregation Program. However, the City cannot guarantee rates, terms and conditions to consumers enrolling in the Aggregation Program after the initial 21-day opt-in period. Consumers may contact the Aggregation Program Manager to obtain current enrollment information. Participants who relocate «~ithin the City limits will be allowed to continue in the A,~reRation Pro~ram at their n~«~ location under- the same terms and conda~~~~n~ as at their fornzer location, provided the AEP~~FirstEnerg~~ rate classification is th~~ s~~n.e at both locations, and subject to any switching fees imposed by AEP/FirstEnergy. CSAC 2/27101 Page 9 of 28 The CRES Provider will comply with all local, state and federal rules and regulations regarding discontinuing service to Aggregation Program participants. Billii~~ The City plans to utilize AEP's/FirstEnergy's consolidated billing service in ~~~hich each consumer account receives one bill itemizing the CRES Provider's electric supply charges and AEP's/FirstEnergy's delivery, transition and other PUCO-approved charges. The billing statement will be consistent with applicable PUCO n>les and regulations. The City will consider other billing options, including CRES Provider consolidated billing, if and when they become available and if it appears advantageous to do so. Orrestions a~td Concerts The Aggregation Program only impacts the source of generation or power supply. AEP/FirstEnergy will continue to deliver the electricity purchased through the Aggregation Program to participants' homes and businesses through its electric transmission and distribution system. Participants with question or concerns regarding service delivery or safety, such as a power outage, a downed power line, sparking power lines or equipment, low voltage, etc. should continue to contact AEP at 800-277-2177 or FirstEnergy at .Meter reading or other billing questions should also be directed to AEP at 888-237-5566 or FirstEnergy at Questions regarding Aggregation Program enrollment, opting out and operation should be directed to the Aggregation Program Manager. Question or Concern Contact Phone Number/e-mail Power outage or interruption AEP 800-277-2177 FirstEner Turn power on or off AEP 800-277-2177 FirstEnergv Meter reading/billing AEP 888-237-566 FirstEner, To enroll in or opt out of the AMPO, Inc. 800-30~-1066 AQ~reQation Program 'cassadv a?am -ohio.or~ Aggregation Program AIViPO, Inc. 800-30~-1066 uestions or concerns ~cassadti- a am -ohio.or~ Unresolved disputes Ohio Consumer's Counsel 877-742-5622 (toll free) (residential customers) i occr'occ.srite.oh.us _ I Unresol~-ed disputes ~ Public Utilities Commission ~I (800)-686-7526 (~~oice) (all customers) ~ of Ohio ! (800)-686-1 (TDD) csnc ziz~iol Page 10 of 28 Reliability and Indemnification of Consumers Electric service reliability is an essential to Aggregation Program participal~ts. The City will strive to provide high-quality service and reliability through provisions of the ORES Provider contract, through traditional proceedings related to AEP's/FirstEer~y's regulated transmission and distribution services; and through direct discussions ~ti~ith AEPiFirstEnergy concerning specific or general problems related to quality and reliability of its transmission and distribution system. If for any reason a CRES Provider fails to provide uninterrupted service, the City will attempt to acquire an alternative power supply. If this attempt fails, participants will default to AEP's/FirstEnergy's Standard Offer Generation Service. In no case will participants be without power as the result of the CRES Provider's failure to provide uninterrupted service. The City will seek to minimize this risk by contracting only with reputable ORES Providers that demonstrate reliable service. The City also intends to include conditions in its CRES Provider contract that will indemnify participants against risks or problems with power supply service and price. Participant Rights All Aggregation Program participants shall enjoy the protections of la~v afforded to consumers as they currently exist or as they may be amended from time to time. These include rights to question billings or service quality or service practices. All program participants shall also enjoy the individual right to decline participation in the Aggregation Program subject to the terms and conditions contained herein. All Aggregation Program participants will be treated equitably. They will be guaranteed the right to raise and resolve disputes with the CRES Provider, be provided all required notices and information; and always retain the right to opt out of the Aggregation Program or switch suppliers subject to the terms and conditions contained herein. y All consumers within the City's corporation limits shall be eligible to participate in the Aagre~ation Program on anon-discriminatory basis subject to the tern7s and conditions described herein, Ohio law, PUCO rules and regulation governing electric service, and AEP's/FirstEnergy's approved tariffs. Service under the Aggregation Program shall include all eligible customer classes in adherence with universal service principles and requirements, and the traditional non- discriminatory practices of local government. ORES Provider contracts shall contain provisions to maintain these principles and equitable treatment of all customer classes. Low-income consumers shall remain subject to all provisions of Ohio la~~~ a^~ PL~CO rules and regulations as they may be amended from time to time regarding tr~eir ri_hts to return to AEP's:'FirstEnergy's Standard Offer Generation Service and participation in tn~ Aggregation Program. CSAC 2/27/01 Page 1 I of 28 Participant Responsibilities Aggregation Program participants are subject to the same standards and responsibilities as other electric consumers, including payment of billings and providing access to metering and other equipment necessary to carry out utility operations. Termination of the Aggregation Program The Aggregation Program may be discontinued upon the termination or expiration of the CRES Provider contract without any extension, renewal or subsequent contract being executed. In the event of Aggregation Program termination, each participant will receive notification at least 60 days prior to such program termination and can return to AEP's/FirstEnergy's Standard Generation Offer Service or select another approved CRES Provider. Definitions Aggregation Combining the electric loads of multiple customers for the purposes of supplying or arranging for the supply of competitive retail electric service to those customers. ~~re;ation Pro;ram Manager The person or entity designated by the City Manager or City Manager designee to oversee the operation and management of the City of Dublin's Municipal Electric Aggregation Program. Competitive Retail Electric Serti~ice (ORES) A component of retail electric service that is deemed competitive under the Ohio Revised Code or pursuant to an order of the PUCO. This includes but is not limited to the services provided by competitive retail electric service providers, power marketers, aggregators and governmental aggregators. Cornpet~tive Retail Electric Sen~ice Provider (ORES Provider) A person or entity certified b}~ the P~'CO and registered with AEP~'FirstEnergy who supplies or offers to suppl` a competitive retail electric sere ice over AEP's~ FirstEnergy's electric transmission and;or distribution system. This term does not apply to AEP/FirstEnergy in their provision of standard offer generation service. t CSAC 2/27/01 Page 12 of 28 CO~ls2llY2C'r Any person or entity that is an end user of electricity and is connected to any part of AEP's/FirstEnergy's electric transmission or distribution systems within the City of Dublin's corporation limits. Delivery Charge Charge imposed by AEP/FirstEnergy for delivering electricity to a consumer's home or business. The charge includes meter reading, billing, transition costs, maintaining electric system reliability and responding during emergencies and outages (also called the distribution charge). Distribution The delivery of electricity to a consumer's home or business over AEP's/FirstEnergy's local poles, wires, transformers, substations, and other equipment. AEP's/FirstEnergy's distribution systems operations will remain regulated by the PUCO. Electric Related Service A service that is directly related to the consumption of electricity at a consumer's home or business. This may include, but is not limited to, the installation of demand side management measures at a consumer's premises, the maintenance, repair or replacement of appliances, lighting, motors or other energy-consuming devices at a consumer's premises, and the provision of energy consumption measurement and billing services. Electric Supply Charge All charges related to the generation of electricity by the CRES Provider. Governrrteittal Aggregator An incorporated village or city, township or county acting as an aggregator for the provision of a CRES under authority conferred under Section 4928.20 of the Ohio Revised Code. Kilotiti~att (kGt) A kilowatt is 1,000 ~~~att5 ILilotitizltt-hour (kGI7t) CSAC 2/27101 Page 13 of 23 A kilowatt-hour is 1,000 watts of electricity used for one hour. For example, a 1,000- watt appliance operating for one hour or a 100-watt light bulb operating for ten hours will consume one kilowatt-hour of electricity. Consumers are charged for electricity in cents per kilowatt-hour. Ohio Consumers' Counsel (OCC) The Ohio Consumers' Counsel (OCC) was established by the Ohio Legislature in 1976 to represent the interests of Ohio's four million residential utility customers served by investor-owned utilities in proceedings before the PUCO, other regulatory agencies and in the courts. The OCC also educates consumers about utility issues and resolves complaints individuals have with investor-owned utility companies. Pctrticipartt A consumer enrolled in the City of Dublin's Municipal Electric Aggregation Program. Public Utilities Contmissiott of Oltio (PUCO) The state agency charged with assuring all consumers (residential commercial and industrial) served by investor-owned utilities have access to adequate, safe, and reliable utility services at fair prices. The PUCO regulates a wide variety of investor- owned utilities, including electric, natural gas, pipeline, heating/cooling, local telephone, long distance telephone, waterworks, wastewater, railroad, household goods carriers, water transportation, hazardous materials carriers, and commercial transportation carriers. Stcartdard Offer Gerteratiott Sen~ice The electric generation service a consumer will receive from AEP/FirstEnergy (the default electric service provider) if the customer does not choose a CRES Provider. CSAC 2/27/01 Page 14 of 28 t City of Dublin, Ohio ~ Municipal Electric Aggregation Program Plan of Operation and Governance AMPO, Inc. 2600 Airport Drive Columbus, Ohio 43219 (800)366-1066 Overview •On February 19, 2001, Dublin City Council passed Resolution Number 12-01 endorsing the concept of becoming a municipal electric aggregator and directing the City Manager to develop a Plan of Operation and Governance for a municipal "opt-in" electric aggregation program z CSAC 2/27/01 Page IS of 28 Overview •AI! eligible customers within the City's corporation limits served by American Electric Power (AEP) and ~ FirstEnergy will have an opportunity to participate in the Aggregation Program on anon-discriminatory basis 3 Purpose The City's purpose in creating the Aggregation Program is to represent local consumers' interests in emerging competitive electricity markets by aggregating electric loads within the corporation limits and negotiating for affordable, reliable electric supplies on behalf of consumers CSAC 2/27/01 Page 16 of 28 Program Structure and .Management -~hOversight of the Aggregation Program will be the responsibility of the City Manager, who shall report to City Council ~~The City Manager will appoint an Aggregation Program Manager (which may be a consultant) 5 Selection of a CRES Provider The City will not buy and resell power to participants •The City will negotiate a contract with a Competitive Retail Electric Services (CRES) Provider to provide reliable, affordable electric supplies on behalf of local residents 6 CSAC 2/27/01 Page 17 of 28 Selection of a CRES Provider The City will develop a contract with a CRES Provider(s) for firm, all requirements electric service ~ The contract will be for a fixed term (i.e., one to five years) and contain all pricing, charges, switching fees, etc. in clear and easily understood terms CRES Provider Minimum Qualifications: Certified CRES Provider by PUCO Registered with AEP/FirstEnergy Have transmission agreements with ~ AEP/FirstEnergy Have Electronic Data Interchange (EDI) system(s) capable of effectively processing transactions in a timely manner Completed EDI Testing CSAC 2/27/01 Page 18 of 28 Electric Supply Charges • CRES Provider will supply information on electric supply ~ charges broken down by AEP/FirstEnergy rate classification • All charges will be fully and prominently disclosed in consumer enrollment materials ~o Other Charges • Governmental aggregation program participants served by FirstEnergy are assessed a one-time, $5 switching fee by FirstEnergy ~1 CSAC 2/27101 Page 19 of 23 Customer Classifications and Rates AEP/FirstEnergy assign customer rate classifications, character of service and associated regulated rates The City cannot assign or alter customer rate classifications 12 Initial Consumer Notification and Enrollment o The CRES Provider will work with the City and AEP/FirstEnergy to identify all eligible customers within the City's corporation limits. To be eligible, consumers must: • Not be a PIPP customer • Be on a FirstEnergy "shoppable rate" • Not have a special contract • Keep their account current 1, 1 CSAC 2/27/01 Page 20 of 28 Initial Consumer Notification and Enrollment • All eligible consumers will receive a notice detailing the rates, charges ~ and other terms and conditions of participation in the program •If consumers do notwish to participate, they don't need to take any further action-they will not be automatically enrolled Initial Consumer Notification and Enrollment • Consumers will be given a 21-day period to notify the City if they wish to opt into, or enroll in the Aggregation Program • After the 21-day opt-in period has elapsed, the CRES Provider will enroll consumers who joined at the earliest date practicable 15 CSAC 2/27/01 Page 21 of 28 Initial Consumer Notification and Enrollment • Consumers enrolled in the program will receive a rescission letter from AEP/FirstEnergy notifying them of ~ their enrollment and granting them seven calendar days to notify AEP/FirstEnergy of any objections to their enrollment 16 Leaving the Aggregation Program Participants who wish to leave the program may do so: • At I ea st every two years • At any other time; however a switching or early termination fee may be assessed by the CRES Provider 17 1 CSAC 2/27/01 Pagc 22 of 23 Leaving the Aggregation Program • Consumers who do not enroll in the program will remain on AEP's/FirstEnergy's Standard Offer Generation Service o Consumers who relocate outside the City limits will pay no exit fee and will return to AEP's/FirstEnergy's Standard Offer Generation Service 18 New and Returning Participants Participants who leave the program and later wish to return as well as new City residents will be able to join the program; however, the City cannot guarantee the same rates 19 CSAC 2/27/01 Page 23 of 23 New and Returning Participants Participants who relocate within the City will be allowed to continue in the program under the same terms and conditions provided: • The rate classification is the same at both locations • Subject to any AEP/FirstEnergy fees zo Customer Billing The CRES Provider will initially use AEP's/FirstEnergy's consolidated billing where each consumer receives one bill itemizing the CRES Provider's electric supply charges and AEP's/FirstEnergy's charges ~1 ¦ CSAC 2127/01 Page 2d of 28 Aggregation Program Funding The CRES Provider's electric supply charge will include a fee to fund implementation and administration of the program 4, This fee will be reviewed annually and adjusted if needed 22 Reliability and Customer Service AEP and FirstEnergy will continue to operate and maintain their electric distribution systems and f will deliver power from the CRES Provider The only thing that changes for participants is the generation supplier CSAC 2/27/01 Page 25 of 28 Reliability and Customer Service Customers will still call AEP/ FirstEnergy for power outages and billing questions The CRES Provider will provide atoll- ~ free telephone number and Internet web site for consumer questions and concerns Customer service protocol will be developed with the CRES Provider 2a Reliability and Consumer _ Ind__emnification The City will strive to provide high quality, reliable service through: ® Provisions of CRES Provider contract ® Traditional proceedings on AEP's/FirstEnergy's transmission and distribution services ® Direct discussions with AEP/ FirstEnergy z5 ¦ CSAC 2/27/01 Page 26 of 28 Reliability and Consumer Indemnification • If for any reason the CRES Provider fails to deliver, the City will attempt to acquire an alternate power supply • If this fails, participants will default to AEP/ FirstEnergy • In no case will participants be without power as a result of participating in the program 26 Participant Rights • All participants enjoy the protection of law afforded all consumers including the right to question billings, service quality or service practices • All participants will be treated equitably • All eligible consumers can participate on non-discriminatory basis p cs,~c ziz7io i Page 27 of 28 Participant Responsibilities Program participants are subject to the same standards and responsibilities as other electric consumers, including payment of ~ k billings and access to metering and other equipment necessary to carry out utility operations 28 Termination of the Program . In the event of program termination, participants will receive 60 days notice and can return to AEP's/FirstEnergy's Standard Offer Generation Service or select another approved CRES Provider 29