Laserfiche WebLink
11 <br /> <br /> Mr. O'Connell explained that Dominion Power approached the City about a <br />program authorized by the State to save customers on their power bills. <br /> <br /> Ms. Judy Mueller, Director of Public Works, said that Council is not being asked <br />for a final decision about whether to approve this proposal, but is being asked if they <br />want to move to the next level with this new concept. <br /> <br /> Ms. Mary Edwards and Mr. David Holt of Dominion Power, presented the <br />proposal for a pilot program for municipal aggregation of electricity purchasing which <br />allows local government to negotiate on behalf of its citizens for a better offer on their <br />purchase of electricity supply from competitive energy providers. They said that the <br />program can be either on an opt-in or opt-out basis. They presented information on <br />programs operating in Ohio. <br /> <br /> Ms. Hamilton expressed concern about what happened in California where prices <br />skyrocketed under a similar program, and Ms. Edwards said they made decisions that <br />allowed that to happen. <br /> <br /> Mr. Holt said that California was required to buy on the spot market, but had a <br />retail cap and imported energy. He said much has been learned from their mistakes. <br /> <br /> Mr. Caravati said he would like to see examples where there has been mediocre <br />and poor savings. He asked about the cost of the City either manning the program or <br />hiring a consultant. <br /> <br /> Ms. Edwards said there is the potential to make small revenue from the program <br />to cover those costs. Ms. Edwards said the City could have the program in place and <br />have the market come to it. <br /> <br /> Dr. Brown asked if there is an estimate of the cost that a consultant would charge <br />to set up the program. <br /> <br /> Ms. Edwards said that Buckeye, Ohio estimated $10,000 to $15,000 to set up the <br />bid process. She said some consultant do this on a contingency basis and do not make <br />money until they get a bid. <br /> <br /> Mr. Lynch noted that the numbers presented are based on a 90% participation <br />level which he feels is high. <br /> <br />Ms. Edwards said that percentage was based on the Buckeye experience. <br /> <br /> Mr. Lynch asked if that is an optimistic participation rate, and Ms. Edwards said it <br />is optimistic for an opt-in program, but realistic for an opt-out program. <br /> <br /> Mr. Lynch said this proposal asks the City to step into the most expensive part of <br />the electric business. <br /> <br />Mr. Holt said the program provides potential savings for constituents. <br /> <br /> Mr. Lynch asked what happens if the City operates the program for four years and <br />then decides not to renew, would it be guaranteed that customers can go back to old rates. <br /> <br /> Ms. Edwards said that rates are capped through 2010, and there is no risk to the <br />constituents as there is always a default service. <br /> <br /> Responding to a question from Ms. Hamilton about wire charges, Ms. Edwards <br />said those rates go away in 2007. <br /> <br /> Dr. Brown said it sounds like the program provides savings to constituents and <br />costs to the municipality. Dr. Brown asked if there are any other costs or just for the bid <br />process. <br /> <br /> <br />