Friday, April 17, 2015

Gas Aggregation - Vote May 5, 2015

A question was posed on the https://www.facebook.com/groups/538603919551392/: What are the pros and cons of gas aggregation?

Here is a sampling of the things I have heard.

A few of the cons, pros, questions and feedback: “We have too many people telling us what to do”. 

Some are distressed that the Utica Shale Program is involved. As Charles Ramer from NOPEC stated “We don’t really have a policy on fracking.” – Being in the energy business I would have hoped for a better statement than that. But then that may be a conflict where $$ is concerned.

“What advantage is there for a city to partner with NOPEC? The city doesn’t do anything without a perk.”

“How much does the local government understand the energy market to determine for us if this is a good deal or not?”

The choice of joining is still up to the property owner. You are automatically enrolled but you will be given the opportunity to opt out. It doesn’t cost the city money. Some are adverse to everyone being automatically enrolled (switched) and then they have to opt out.   

2 public meetings are required on the issue but only if and after it passes in May.

Feedback from other communities that have participated: “You still need to watch the rates – Nopec does not always provide the lowest and you may be able to negotiate lower rates on your own”

Comments taken from that Facebook thread:
“Pros (in theory) - the costs are lower and predictable. Cons - they may not be lower than market prices especially given fracking is uncovering larger supplies. That said, I think cable and telecom companies are completely raking us with their 2 year contracts, so I am skeptical...just need to learn more.”

“The electrical aggregation has worked out great.”


“Seems like electricity prices are stable and gas prices are volatile but going down. Where will the price line be drawn?” This comment linked this article: http://www.bls.gov/regions/midwest/news-release/averageenergyprices_cleveland.htm?hc_location=ufi

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