LIMA — An issue appearing on Lima’s November ballot is banking on the premise that it pays to buy in bulk.
Lima voters will have the opportunity to decide whether to permit Lima City Council to work with Palmer Energy Co. to find an aggregated, opt-out electric utility rate for eligible city residents and small businesses.
A process already in place for customers in rural Allen County, Beaverdam, Bluffton, Cairo, Delphos, Harrod, Lafayette and Spencerville, aggregation is the process where a third-party broker negotiates with utility suppliers to determine a supply rate for an entire block of customers, rather than customers negotiating supply rates on an individual basis.
“This is an opportunity for communities to pull together to get better buying power,” Palmer Energy account manager Bill Bradish said at an informational meeting held Monday at the Lima Municipal Building. “In this type of program, it requires it to be a ballot issue, and council members have decided it is worth looking at.”
This measure, if approved, would permit council to consider any proposals brought by Palmer Energy, with council reserving the right to turn down any offer deemed unacceptable, according to Bradish. Any customers currently in contract with an electric supplier would not be included, although they would have the option to opt in to any aggregated rate when their contract would expire. Bradish cautioned against leaving a contract before expiration due to the risk of termination fees. Customers on Percentage of Income Payment Plans or small businesses that use more than 700,000 kilowatt hours of electricity per year would also not be eligible.
“They would not even get a letter from us,” Bradish said. “And if you don’t want to be in, you can opt out. Also, our programs have zero termination fees, so even if you do accidentally get into the program, you can get out at no cost.”
This program would only affect electric supply rates, which are deregulated. Transmission rates in this area are determined by American Electric Power, with those rates regulated by the Public Utilities Commission of Ohio.
A second informational meeting will be held at 7 p.m. Monday at the Lima Municipal Building.
