Pass: 35,431 / 58.64% Yes votes ...... 24,994 / 41.36% No votes

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Impartial Analysis from League of Women Voters of the Cincinnati Area

EXPLANATION: Issue 45 asks if the City of Cincinnati shall have the authority to aggregate the retail natural gas loads located within the incorporated areas of Cincinnati thereby instituting an opt out natural gas service aggregation program and enter into service agreements for the sale and purchase of natural gas.

Eligible residential, small businesses and other natural gas consumers in the city would be auto- matically included in the program except where any person chooses to opt out.

An opt-out aggregation program requires voter approval at an election. This issue was placed on the ballot by an ordinance passed by City Council. What the issue would do: If voters approve an aggregation program, the City of Cincinnati would be authorized to aggregate retail natural gas service loads located within the incorporated area of the City. The City Manager on behalf of City Council would be authorized to enter into service agreements to facilitate the sale and purchase of service for natural gas loads and may exercise that authority jointly with any other political subdivision of the State of Ohio in order to establish a Natural Gas Service Aggregation Program. If voters approve an aggregation program, the City Manager on behalf of City Council would be authorized to individually or jointly with any other political subdivision of the State of Ohio, develop a plan of operation and governance for the Natural Gas Service Aggregation Program. At least two public meetings would be held on the plan prior to a vote by Council on its adoption. No plan adopted by Council shall aggregate any retail natural gas customer in the City unless it in advance clearly discloses to the person whose retail natural gas service is to be aggregated that the person will be enrolled automatically in the Natural Gas Service Aggregation Program and will remain enrolled unless the person elects by a stated procedure not to be enrolled. The disclosure shall state prominently the rates, charges, and other terms and conditions of enrollment. The stated procedure shall allow any person en- rolled in the Natural Gas Service Aggregation Program the opportunity to opt out of the program once every two years, without paying a switching fee. Any person that opts out of the Natural Gas Service Aggregation Program following the procedure shall default to the natural gas company providing distribution service for the person's retail natural gas service load, until the person chooses an alternative supplier.

BACKGROUND: Beginning in 2001, an Ohio law required natural gas suppliers to be certified by the Public Utilities Commission of Ohio and also gave local governments the opportunity to aggregate customers in a manner similar to the electric choice model. Energy aggregation has allowed local governments to give constituents additional natural gas choices.

Under Ohio Revised Code (ORC) 4929.26 the City of Cincinnati, by and through City Council is authorized to establish an opt-out a natural gas service aggregation program for the benefit of natural gas consumers living in the City. Municipal aggregation is the process in which energy is sold to consumers who have joined together in a buying group through their local government. Aggregated groups may reduce a supplier's marketing and administrative costs and may be able to negotiate discounts on natural gas prices. The aggregated group would remain customers of the natural gas company. The local gas utility company would deliver gas to homes and would continue to read meters, assist with billing and respond to emergencies. If a customer remains with the local gas company that company would continue to supply the customer's natural gas.

The Natural Gas Service Aggregation Program does not apply to a person who is both a distribution service customer and a mercantile customer or has an existing commodity sales service contract with a retail natural gas supplier or has commodity sales service as part of a retail natural gas aggregation program under rules of the Public Utilities Commission of Ohio or other persons not eligible under PUCO rules.

In Hamilton County several municipalities and townships have approved gas opt-out aggregation ballot measures.

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• "Impact Cincinnati" discusses Energy Aggregation (10/27/11) - Features Rachael Belz and Jim Drummond

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