Council stalls vote to join SOPEC aggregation; officials debate price, governance and timing

The City Council on Monday received a presentation from the Sustainable Ohio Public Energy Council (SOPEC) about a proposed electric aggregation program and the plan of operation and governance for joining the council-of-governments model. Council discussion focused on whether the city had evaluated enough options and whether the agreement would produce the most competitive price for residents.

Phil Leppla, SOPEC deputy director and general counsel, described SOPEC as “a regional council of governments under chapter 167 of the Ohio Revised Code” and outlined the organization’s structure, governance, and energy programs. He said SOPEC represents 49 communities and aggregates roughly 1.2 terawatt-hours of annual load, which the group uses to pursue bulk supply contracts and, by default, 100% renewable energy for aggregation participants.

Leppla explained that aggregation affects the supply portion of a resident’s bill in Ohio’s deregulated electricity market, while local utilities retain delivery and distribution service. He described the opt-out process required by statute: a mailed opt-out notice with a 21-day opt-out window and PUCO review periods.

During a lengthy question-and-answer period, Mayor Pat Klauser said he did not initially seek out SOPEC but welcomed the organization because its administrative costs appeared lower than the city’s current arrangement. “I wasn’t looking for the other products; I’m looking for the best deal for the citizens of London,” the mayor said, noting SOPEC’s lower administrative charges and broader services including natural gas aggregation and grant-writing support.

Several councilmembers urged more competitive comparisons. One council member warned the city had evaluated too few options and asked how the city could be sure the SOPEC approach produced the lowest end rate for customers. SOPEC representatives and some council members said administrative fees are only one element of the final customer rate; the delivered end price depends primarily on the commodity supply contracts the aggregator negotiates.

Council took a procedural motion to table the ordinance that would join SOPEC and adopt the plan, but the motion to table failed on a roll call (two in favor, three opposed, one abstention). Council left the ordinance and the companion resolution on the agenda for a later (fourth) reading so staff could continue to gather information and avoid an unplanned gap in aggregation at the end of the city’s current contract.

Council members and SOPEC staff also discussed where the renewable energy certificates (RECs) SOPEC offers come from and how administrative fees are used. Leppla said RECs the council purchases are typically sourced from regional wind in states such as Oklahoma and Texas and that administrative fees fund SOPEC’s operations, including a Central Ohio call center.

No final contract was signed at the meeting. Council directed staff to collect additional comparative information on administrative fees, program terms and how a SOPEC membership would be timed to align with the city’s existing contract expiration. The item will return to council for further consideration.