ELECTRIC AGGREGATION UPDATE
In October 2014, the Village entered into an electric aggregation contract with Interstate Gas Supply, LLC (IGS) to provide residents with the lowest rates available on the generation portion of the utility billing. The current aggregation rate for electric generation is $0.0576/kWh. This contract will be coming due in September 2017; however, the Village has already begun its bid process with its aggregation broker.
Due to the expiring contract, residents may begin to receive a significant amount of calls from various electric aggregators advertising for very low rates - some of those rates may be lower than the current rate of $0.0576. However, such rates usually have a very limited timeframe and can include penalties if the resident wishes to change to the Village contract at a later date.
Should you receive a call regarding your electrical aggregation, please exercise caution before making any changes. As always, if you wish to stay with the Village contract, simply do not respond to the phone calls or mailers and the Village negotiated rate savings will be passed on to you.
If you have any questions, please do not hesitate to contact Village offices.
NATURAL GAS AGGREGATION PROGRAM
UPDATE FOR 2016-2017
The Village has been informed that Energy Alliances, Inc. the Village’s gas aggregation consultant, was able to obtain a competitive rate with Constellation Energy Services for the Village’s Natural Gas Aggregation Program. Over the past weeks, Energy Alliances reviewed pricing options for the Village’s gas aggregation program. This process affords Village residents’ more competitive rates for the gas commodity portion of their Duke Energy bill.
Constellation was able to secure a Flex Down Rate of $0.4576/ccf that will become effective with the December 2016 meter reading (January invoice) and end with the April 2017 meter reading (May invoice). The advantage of a Flex Down Rate is that your rate may drop below the locked-in price of $0.4576/ccf if market prices decrease during the locked-in period (December through April). However, your rate will never exceed $0.4576/ccf regardless of how high the market may go.
This locked in rate compares to last winter’s Flex Down Rate of $0.335/ccf and Duke Energy’s current rate of $0.4775/ccf (for November 2016 billing). The increase in the rate from last year is due to: 1.) a decrease in market production, 2.) an increase in total gas consumption throughout the year compared to 2015, and 3.) an anticipated colder winter with gas consumption levels estimated to be 10% more this winter than last winter.
Constellation will be sending notification letters to current program participants during the second week of November. This notification will explain the Flex Down price/term and provide additional information about the Village’s Program. If you are not currently participating in the Village’s Aggregation Program, but want to enroll, you can do so by calling 877-226-9456.
As a reminder, if a resident wishes to remain in the Village’s aggregation program, please do not respond to any mailers or phone calls from other agencies. If you have any questions, please do not hesitate to contact the Indian Hill toll free customer service number at 877-226-9456 (available 24 hours a day, 7 days a week) or log on to Indian Hill’s dedicated web page at www.constellation.com/oh-indianhill .
ELECTRIC AGGREGATION WARNING:
The Village administrative offices have received several calls over the past few weeks from an electric service provider offering to “lock in” lower rates and provide a rebate due to the lower rate that they offer. It is believed that they are using coercive and high pressure sales tactics in order to have consumers unknowingly switch to their company. A complaint against this company has been filed with The Public Utilities Commission of Ohio regarding the calls placed to the Village.
It is ultimately your choice and responsibility to choose a service provider. Please be aware that the Village entered into an electric aggregation contract with Interstate Gas Supply, LLC (IGS) in 2014 to provide residents with the lowest rates available on the generation portion of the utility billing. The current aggregation rate for electric generation is $0.0576/kWh. A significant portion of Village residents participate in this program and do not need to do anything to receive the rate negotiated by the Village on their behalf.
Should you receive a call regarding your electric or gas supplier, please exercise caution before making any changes.
Over the next few days, you may receive a letter from Constellation, the broker for the Village of Indian Hill gas aggregation program. This letter will be sent only to those who chose not to opt out of the Village aggregation program back in November when the opportunity was presented. This letter will inform you that a Flex Down gas aggregation rate for Indian Hill has been set at $0.335/ccf for the January 2016 (February invoice) meter reading to the April 2016 )May invoice) meter reading. If the rate drops below $0.335 between January and April, you will receive a lower rate; however, the rate will never exceed $0.335/ccf.
For comparison purposes, Duke's current gas rates for January and February are $0.4273 and $0.4231 respectively. In addition, due to the unusually warm fall and winter, the current Flex Down rate is much lower than the $0.497/ccf rate that the Village received in 2015.
If you have any questions, please do not hesitate to contact the City Manager at 513-561-6500.
The following is an electrical aggregation update from the City Manager, Dina Minneci:
Since May, Village of Indian Hill residents have been utilizing the Duke Energy pricing of $0.064 for electric due to the Village’s contract ending with DPL Energy Resources. Upon the contract’s expiration, an unprecedented increase in the electrical market provided a noncompetitive environment for residential aggregation. Over the summer, the Village has monitored the market to capitalize on the best opportunity to lock into an advantageous fixed rate. The Village has completed its evaluation and has entered into an agreement with a new electrical supplier – Interstate Gas Supply, LLC (“IGS”). This new agreement provides Village residents with a fixed rate of $0.0576/kWh for a three year period.
Beginning the first week of September, any resident who is not already using an alternative electric supplier will receive an opt-out letter from IGS. In addition to the opt-out letter, residents will receive notice from Duke Energy advising that their electrical supplier will be switched to IGS. To take advantage of the $0.0576/kWh rate secured by the Village, NO ACTION IS NEEDED. Residents may simply ignore these two letters.
However, if residents prefer to be with Duke Energy or select another alternative supplier, they will need to contact IGS at 1-800-280-4474 to opt-out. In addition, if a resident wishes to have “green” energy generation, you must contact IGS to be included in a special pricing category which is a slightly higher rate.
The new pricing will become effective with meters readings occurring after October 13, 2014.
The Village will continue to keep residents informed about the transition from Duke Energy to IGS through Bulletin articles and updates on the Village website www.ihill.org/aggregation . You also are able to receive real time “e-mail updates” by visiting the Village website and registering your e-mail address. Please do not hesitate to contact Dina Minneci, City Manager, at 561-6500 or email@example.com if you have questions or need additional information.
May 16, 2014
The following is an electrical aggregation update from the City Manager, Dina Minneci:
Over the past month, the market price of energy has increased significantly over 17%. Perigee Energy, who was to be the new electrical supplier for the Village of Indian Hill, has withdrawn its contract due to the unprecedented volatility of the market. Consequently, Village residents will return to Duke Energy beginning with their June meter readings. The Duke rates will be reflected on their July invoices. PLEASE NOTE - electrical service will not be terminated and you will continue to be responsible for any financial obligations related to your monthly utility billing.
At this time, the Village is working diligently with other suppliers to facilitate a more competitive rate for its residents. We will provide real time updates through the Village E-mail Blast system which you can sign up for on our website www.ihill.org/notify. Updates will also be posted to the website and Bulletin. Until the Village enters into a more competitive rate than Duke Energy, please contact me at 561-6500 or firstname.lastname@example.org if you have any questions or concerns. You may be contacted by an aggregation retailer by mail or phone. These suppliers may have associated fees, charges and rate adjustments that are not included in their advertised rates.
Dina C. Minneci
Village of Indian Hill
UNDERSTANDING THE INTEGRYS NATURAL GAS PROGRAM
Residents who participate in the Village of Indian Hill natural gas aggregation program recently received a letter from Integrys welcoming them to the program re-newal for 2013. Residents do not need to do anything in order to be included in the program, but the letter de-scribed two different options residents may choose with regard to program pricing.
The two options are the Locked-in Price with Flex Down Opportunity or the Monthly Variable Rate. Prior year programs have been based solely on the Locked-in with Flex Down Opportunity option. Residents are automatically enrolled in the first option, but they can go online or contact Integrys to choose the second option. The following information is intended to clarify the differences between the two options:
The Locked-in Price with flex Down Opportunity option provides for price protection especially during the higher usage winter months. If you are concerned about how high the gas market might go, and prefer to enjoy stable rates, your best choice is this option because your rate will not go up during 2013, but they could go down if the market price goes lower. Village officials feel that this option remains the safest consumer choice for residents.
The Monthly Variable Rate option could be attractive to residents who are not concerned about how high the gas market could go and want to enjoy the lowest market prices every month. This type of program has historically yielded higher savings, but with gas markets at their lowest level in many years, such an option could be more risky. Monthly program rates are available online at www.integrysen ergy.com/indianhill.