Muni Aggregation Serving Nearly 1 Million Customers To Return Standard Product Electric Customers To Utility Default Service

Aggregation Says Most Supplier Offers That Sound Too Good To Be True Are "Deceptive"

August 24, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Northeast Ohio Public Energy Council (NOPEC) will "immediately" be returning its Standard Program Price electricity customers to default service

NOPEC, across all its aggregations, serves nearly 1 million customers. NOPEC's gas aggregation is not affected, and NOPEC will not be returning to SSO certain electric customers on optional plans (such as its monthly variable (MVP) rate whose price is a fixed percent discount to the SSO, or the customers on optional fixed term plans)

At Cleveland Electric Illuminating, NOPEC's standard price is 12 cents per kWh, while the utility price to compare is about 6.8 cents per kWh. Similar price spreads exist between the NOPEC standard product and the price to compare at other EDCs.

"Unfortunately, electric prices have spiked in 2022 for reasons beyond NOPEC’s, NextEra’s [NOPEC supplier NextEra Energy Services Ohio, LLC] and the PUCO’s control. Prices are likely to remain at current levels throughout the aggregation program’s current term, and could move even higher in 2023. The spike in market prices will significantly increase NOPEC’s Standard Program Price customers’ electricity costs for the remainder of the aggregation program. Consistent with its mission to protect customers’ interests in the electricity marketplace, and to prevent them from experiencing drastic electricity price increases in these inflationary times, NOPEC will immediately be returning its Standard Program Price customers to the EDUs’ standard service offers ('SSO')," NOPEC said

"Specifically, NOPEC intends to return Standard Program Price customers to the EDUs on customers’ next meter read dates during the month of September, provided that the applicable EDUs are willing and able to facilitate all customer transfers to SSO without delay and/or daily customer volume limitations," NOPEC said

NOPEC will not be returning fixed-term or MVP customers to the SSO.

"NOPEC plans to resume its aggregation program when NOPEC’s costs are expected to align considerably more closely with then-effective SSO prices," NOPEC said

In an FAQ posted for customers, NOPEC stated that while its prices are significantly higher than the SSO price to compare (which it attributed to the timing of the SSO auctions, which occurred mostly prior to current market price spikes), "Residents that compare pricing on the Apples-to-Apples website should notice that NOPEC’s current pricing is still 3% to 28% below the average pricing offered by other major retailers and that many of those offers listed have high early termination fees and tricky terms that may result in future price increases."

Another NOPEC FAQ states, "I have recently received solicitations with offers lower than NOPEC’s prices. Should I consider these?", with an answer of, "READ THE FINE PRINT CLOSELY. Some for-profit energy suppliers are using this uncertainty to their own advantage. Residents and small businesses should be especially wary of energy offers that sound too good to be true. Most are deceptive and have costly consequences. For example, a solicitor seeking your business may ask to see your utility bill or ask for your account number to 'compare rates.' Consumers should NEVER share their utility bill or account information with anyone that contacts them unprompted and should review the fine print very carefully before signing any contract."

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