What is Natural Gas Aggregation?
Through the Ohio natural gas deregulation laws, Municipal government have the opportunity to "aggregate" natural gas on behalf of many of their residents and small businesses. The Municipal government may become certified through the Public Utilities Commission of Ohio (PUCO). After receiving approval from the constituents to form an aggregation program (through the regular Municipal election process), the municipality may contract with a certified natural gas marketer for gas supply.
Why should I support Municipal Endorsements or Governmental Aggregation programs?
Endorsement and Aggregation agreements enable residents to receive more benefits than if they purchased natural gas as an individual home or business. Your Municipal government is able to select a natural gas supplier who through the power of volume buying is able to secure long term supplies of natural gas at very competitive prices. Also, with Direct Energy's Endorsement or aggregation programs there are no early cancellation fees! Direct Energy and your Municipal government can work together to create a win-win program. Direct Energy wins by being able to supply your natural gas and the Municipal government wins by being able to take advantage of volume buying for residents and businesses.
What is an Endorsement (Opt-In) program?
An Endorsement (Opt-In) program enables the Municipal government to endorse a certified natural gas marketer. The Municipal government will contract with that marketer for a preferred natural gas program for their Municipal residents and small businesses. The residents and small businesses will receive a letter that contains the program details. Interested customers must affirmatively take action to contact the natural gas marketer (like Direct Energy) in order to be included in the program. If any resident or small business does not respond to the letter, their current gas supply will remain unchanged and they will not be included in the Endorsement program.
What is a Governmental Aggregation (Opt-Out) aggregation program?
An opt-out aggregation program enables the Municipal government to endorse a certified natural gas marketer. The Municipal government will contract with that marketer for a preferred natural gas program for their Municipal residents and small businesses. The residents and small businesses will receive a letter that contains the program details. If any resident or small business does not respond to the Opt-Out letter, their current gas supply will be included in the exclusive aggregation program and they will become a Direct Energy customer on their next applicable billing cycle. If any resident or small business does not want to become a member of the aggregation then customers must affirmatively contact the natural gas marketer (like Direct Energy) in order to not be included in the aggregation.
Am I automatically enrolled?
Enrollment varies between Endorsement (Opt-in) and Governmental Aggregation (Opt-Out) programs.
- Enrollment for an Endorsement Program (Opt-In): To become included in an Endorsement program you must contact Direct Energy to include your gas supply "in" the program. If you do not respond to the Endorsement letter, your natural gas supply service will remain with your current supplier.
- Enrollment for a Governmental Aggregation Program (Opt-Out): In the Governmental Aggregation (Opt-Out) program, you must write to or telephone phone Direct Energy to exclude your natural gas supply from the exclusive program- or affirmatively take your gas supply "out" of the aggregation. For your convenience, if you do not respond by the date specified on the letter under an opt-out aggregation program, you will automatically be included in the program.
What is the Direct Energy Offer? Could you explain the product in more detail?
Your Municipal government will determine the periods under which the members will receive a guaranteed fixed rate and periods when the price will remain variable and float with the market. Very much like interest rates. The objective is to provide peace of mind by locking in a fixed price during the winter period when on average customers consume about 70% of their natural gas requirement and when the market is most volatile. Direct Energy works with each Municipal government independently and as such, each aggregation program may have a unique offer. For more information on the product available in your area, you may contact Direct Energy at 1-866-760-6040 for specific details.
What communities does Direct Energy currently provide natural gas supply service under an aggregation program?
Direct Energy Endorsement (Opt-In) Programs:
- Fairlawn
- Stark County (unincorporated Municipal government)
- Canal Fulton
- Lisbon
- Marietta
- Summit County (unincorporated Municipal government)
Direct Energy Governmental Aggregation (Opt-Out) Programs:
- Tallmadge
- Celina
- Wapakoneta
- Stark County
- Canal Fulton
- Barberton
- Summit County
Who Is Eligible for Governmental Aggregation Programs
To be eligible to participate in a Governmental Aggregation program, you must:
- Have a residence or business located in a participating municipality
- Be eligible to receive natural gas from the Municipal utility
- Meet Ohio non-mercantile requirements (annual consumption must be less than 2,000 mcf)
- Be current with your natural gas payments
- Not be enrolled in the PIPP program and
- Not be enrolled with another natural gas supplier (any supplier beside the Municipal utility).
Can you Opt-In to a Governmental Aggregation program?
Based on the Ohio deregulation laws, customers who receive service from an alternate supplier are not considered eligible for inclusion in a Governmental Aggregation program. As a courtesy to residents who wish to receive the Aggregation product, Direct Energy will allow Municipal residents in the Governmental Aggregation program areas to enroll on the Aggregation product, however, these customers will not be considered members of the Governmental Aggregation.
Is this offer on your website or posted on the Apples to Apples website?
No, this is an exclusive program and is not listed on the PUCO's Apples to Apples website or Direct Energy website. The only place that these specific programs are detailed is in letters to individual customers.
Are there any early cancellation penalties?
As an exclusive enrollment benefit, Direct Energy will not assess Endorsement or Governmental Aggregation customers early cancellation fees!
Will my billing structure or reliability be affected?
Your reliability and billing structure will remain the same! The Municipal utility will continue to send your bill and you will continue to send one payment to the Municipal utility for their charges and Direct Energy's charges. The Municipal utility will also continue to respond to emergency service requests; exactly the same as before natural gas supply choice programs became effective.
What if I want to be on a budget-billing program?
The Budget Billing Option if available to you for both an Endorsement Program and a Governmental Aggregation Opt-Out Program. You need to contact your utility and request this payment option. The budget bill payment from the utility will include charges from Direct Energy and the Municipal utility.
In the Columbia Gas of Ohio service area budget-billing requests will be honored any time except during August billing when an estimated budget bill will be offered. The account will be automatically placed on budget bill for the rest of the season. Any time a customer's account is moved from one marketer price to another-the budget bill amount is recalculated.
Is there a deadline?
Customers must enroll by the date specified on their enrollment letter. The offer is good until then and then while supply lasts.
Where may I find more information?
If you have questions about your community's aggregation plans that Direct Energy has not addressed, you may call your Municipal official's office - city, county or township. You may also contact the PUCO's Consumer Hotline at (800) 686-PUCO (7826) or visit the PUCO web site at www.PUCO.ohio.gov. For general information about Ohio Electric Choice, you may call the Ohio Electric Choice answer center at (888) OEC-1314.
Page last modified: September 22, 2006
