Municipal Electric Aggregation

Municipal Electric Aggregation - Case Study

Single community seeking offers for Residential and Commercial customers.

Local Utility:

Duke Energy Ohio




Community wants to offer electric savings to residents and is facing a short-fall in their general fund due to declining revenue returned from the State.

Buying Group Description:

Single community seeking offers for Residential and Commercial customers.


  • Independent Energy Consultants solicited offers for 1, 2, and 3 years from all eligible suppliers.
  • Rates from the utility company were the highest in the State and have been climbing. The Price to Compare (PTC) for a shopping customer was 9.9 cents/kWh. Independent Energy Consultants understands the true market conditions and knew significant savings are available.
  • Independent Energy Consultants prepared an RFP in which it asked suppliers to make bids that included civic grants to the community’s general fund based on the number of accounts enrolled.
  • IEC worked with suppliers to develop accurate load profiles including attrition rates so the suppliers could submit offers that were revenue-neutral for their business. The concept is to take some of the savings and share them with the community.
  • Suppliers provided bids for 1, 2 and 3 year terms, each with different rates to residents, expressing them with and without a civic grant going to the community’s general fund. Longer term agreements had larger civic grants because the supplier has more time to recoup that shared savings.
  • Residents received price protection with a 3-year fixed rate. The alternative rate from Duke Energy at the time was 59.6% higher.
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