Unincorporated Oxford Township, along with several other Butler County townships and villages, will vote on electrical aggregation in their communities at the polls Nov. 7.
This vote will determine whether officials can purchase electricity for their constituents collectively, in order to search out a better price.
Electrical aggregation is done through multiple steps, said Doug Elliot, Oxford City Manager.
First, voters need to pass the bill. After the bill is passed, the township — using an electrical aggregation consultant — will begin a formal bidding process, where certified electricity providers submit contracts to be considered by the township. Once the township decides on a supplier and signs a contract, households will begin to get electricity from their new provider, Elliot said.
Oxford approved electrical aggregation in 2014. As well as Oxford Township, electrical aggregation is on the ballot Nov. 7 in Reily, Lemon, Milford, Ross and Wayne townships as well as Seven Mile, Millville, New Miami, Jacksonburg Trenton, Monroe and Fairfield.
Because aggregation is an opt-out program, if it is approved households that wish to stay with Duke Energy or their previous energy provider will need to respond to a letter sent out by the township.
Oxford Township Trustee President Norma Pennock said the main benefit of electrical aggregation, compared to using the township’s default energy provider Duke Energy, will be a lower rate for customers. The township will solicit bids to serve all the customers in the township.
“It’s the same reason you might go to Costco,” Pennock said. “[When] buying a lot more [electricity], the energy consultant or broker has an opportunity to negotiate prices with energy suppliers on behalf of however many customers are in this particular block.”
The township is working with Energy Alliances, a consulting and supply company located in Cincinnati. Tim Abbott, Energy Alliances’ director of communications, said that the fee is paid by suppliers during the bidding process. Instead of customers or the township directly paying for their services, the aggregator’s fees are incorporated into the bidding process.
Because the energy market is complex, and buying electricity is “like playing the stock market,” it can be difficult to manage as an individual, Abbott said.
“In the old days, before the market was deregulated, the utility made the power and distributed the power, and that’s all you knew,” Abbott said. “When that was deregulated, it created a situation where customers now have to educate themselves and make sure that they’re getting a fair value for their electricity.”
Electricity will still be delivered by Duke Energy and electricity bills will still be paid the same way by all households, regardless of electrical provider. The only change customers will see is a different price at the end of the month.
In 2014, 69% of Oxford voters supported the change to electrical aggregation. Since then, the city has had contracts with multiple energy providers. Under the most recent two-year contract with Energy Harbor that expires in 2025, residents pay 7.17 cents per kilowatt hour. Meanwhile, energy from Duke Energy is 9.94 cents per kilowatt hour, according to Elliott.
As well, Oxford’s electricity is sourced entirely from renewable wind energy, he said. However, buyers also have the option to opt-out of the system and receive traditional fossil fuels at a lower price if they so choose.
