Five communities choose utility aggregation

“My opinion, as this evolves, as we’re able to create savings, other communities will take a serious look. The bigger the group, the better. We’d welcome more entities into the pool. Maybe we wait a year and get pricing and show savings and then it’s not a promise, but a reality.” Tim Bubb Licking County commissioner

NEWARK – Heath, Johnstown, Hanover, Alexandria and Saint Louisville voters chose aggregation of electric and natural gas to potentially reduce energy costs.

Newark split its vote in Tuesday's primary election, supporting group purchasing for gas, but not for electric. Pataskala voted down both gas and electric aggregation, so the final tally was 11 affirmative votes and three negative outcomes for aggregation.

The affirmative votes allow the communities to buy electricity and natural gas in bulk, with help from the Licking County commissioners working with energy consultant Palmer Energy, and passing the savings to retail consumers on their utility bills.

Historically, the savings have been about $100 annually per customer, but that changes with the market, Palmer Energy consultant Bob Snavely said.

Licking County Commissioner Tim Bubb said he was happy with the results, and the ones voting against aggregation could change their decisions in a subsequent election.

“As a commissioner, I'm ecstatic five communities, plus Newark on gas voted to allow aggregation of fuel,” Bubb said. “It's one of the few opportunities, voters can got to the polls and save themselves money.

“This is being done all over. We believe, with a little patience, we'll be able to absolutely deliver on the promise (of savings). We believe group purchases of energy is going to be the wave of the future.”

The Newark vote on electric aggregation is still not decided, as it lost by four votes, but the Licking County Board of Elections will still add in outstanding absentee votes and military and overseas ballots.

“Four votes,” Bubb said. “I'm not giving up on this. So that could change. We could end up with 12 of 14.”

Palmer Energy will put out a request for proposals and recommend moving forward when the results show savings. Then, a contract will be pursued. Bubb said the war in Ukraine's impact on energy prices could slow the process.

“There's no timetable,” Bubb said. “Once a community votes, it's an option. Maybe this summer, when it's appropriate, we can get a two-or three-year contract.”

If voters approve the program, all eligible residents are automatically enrolled, but those who do not want to participate can opt out by returning a form included in a letter mailed to residents.

Pataskala could still revisit the issue in another election and possibly join the aggregation pool of communities at some time in the future.

“In Pataskala, someone sent out a last-minute card that was unsigned and with no disclaimer, with some untruths and created doubt,” Bubb said.

Previously, Granville and four townships voted for aggregation and have their own plan. But, when that contract expires, that group could join with others in the county to form a larger group.

“My opinion, as this evolves, as we're able to create savings, other communities will take a serious look,” Bubb said. “The bigger the group, the better. We'd welcome more entities into the pool. Maybe we wait a year and get pricing and show savings and then it's not a promise, but a reality.”

The aggregation affects customers of Columbia Gas and American Electric Power. Members of Energy Cooperative in the seven communities will not be affected by the programs, as they come under a different section of the law and have already aggregated their fuel purchases to get more competitive pricing.

More than 200 communities in Ohio have chosen an aggregation program. kmallett@newarkadvocate.com Twitter: @kmallett1958