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Council holds first public hearing on joining SOPEC electric aggregation program
Summary
London City Council heard a presentation from SOPEC counsel and held the first of two required public hearings on joining the Sustainable Ohio Public Energy Council (SOPEC) aggregation program; council set a second hearing for July 17 and did not vote on joining at the meeting.
London City Council held the first of two statutorily required public hearings on an electric aggregation plan proposed through the Sustainable Ohio Public Energy Council, commonly called SOPEC.
The hearing opened after a motion to enter a public hearing was made and seconded. Phil Leppla, deputy director and general counsel for SOPEC, described the council’s proposed plan of operation and governance and answered council questions about term length, opt-out mechanics and renewable options.
Leppla told the council that aggregation changes only the supply portion of a customer’s bill and that delivery and the utility’s responsibility for the wires remain unchanged. He also said participation in an “opt-out” aggregation is voluntary and explained the 21-day opt-out notice period and multiple opt-out methods including a QR code, an 800 number and paper return. “We do not charge early termination fees,” Leppla said.
Leppla cited Section 4928.2(c) of the Ohio Revised Code as the statutory authority requiring two public hearings on electric aggregation plans. He also said SOPEC and its retail provider, AEP Energy, typically offer fixed-term supply contracts and that, because energy markets are volatile, communities currently prefer shorter, one-year terms.
Council members and audience members asked whether a municipality locked into a multi-year contract could take advantage of lower market prices in a later year and whether the council’s decision would affect outage response. Leppla replied that a locked supply contract sets the price for the contracted term and that distribution and outage service remain with the local utility.
Leppla described SOPEC’s customer service setup and renewable options. He said many SOPEC members take a 100% renewable default but that community-specific options exist; he added that renewable energy certificates used to track renewable supply are often sourced from generators in Texas or Oklahoma for SOPEC customers.
The council did not vote to join SOPEC at the meeting. A second public hearing on the ordinance to join SOPEC and on its plan of operation and governance was set for July 17. Council then voted to exit the public hearing and return to the regular meeting.
The full SOPEC plan and the certified PUCO certificate are available through SOPEC’s materials and the city clerk’s office, Leppla said.
