Municipal Electric Aggregation

Municipal Electric Aggregation - Case Study

Single community seeking offers for Residential and Commercial customers.

Local Utility:

Cleveland Electric Illuminating

Population:

54,000

Challenge:

The community is under severe budget constraints, but wants to move forward with an electric program to help its residents and small businesses save on their utility bills. They are also looking for creative ways to fund the restoration of a Veterans' Memorial.

Buying Group Description:

Single community seeking offers for Residential and Commercial customers.

Resolutions:

  • Mr. Burns wrote the Request For Proposal to require the winning supplier to make a donation for each account enrolled in the program.
  • The RFP also required the winning bidder to reimburse the community for its administrative costs in establishing the program.
  • The donation prevented tax dollars from being used to restore the Memorial.
  • The supplier was also able to gain a great deal of customer support and loyalty by being recognized for making the generous donation.
  • The donation was earmarked for the specific purpose of restoring the Veterans' Memorial.
  • The cost to the supplier was passed onto the customers through a slightly higher offer price, but significant savings were still achieved.
  • Through the creative thinking of its consultant, the Community was able to establish and administer the program at no cost, and was able to fund a much needed restoration project without using taxpayer dollars.
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