https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
  • Resources
    • Back
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Subscribe to GovPro
    • Manage GovPro Subscription
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
acc.com

Public Works & Utilities


Commentary

Viewpoint: Aggregation can lower constituents’ utility bills (with related video)

Viewpoint: Aggregation can lower constituents’ utility bills (with related video)

Richard D. Rathvon, vice president for retail commodity services for ConEdison Solutions, says local governments are using energy aggregation to lower constituents' utility bills.
  • Written by Richard D. Rathvon
  • 15th May 2013

Local governments devote much attention to delivering valued services while trying to hold the line on taxes. Now, remarkably, a growing number of jurisdictions around the country are providing their communities with an exciting, new benefit: they’re lowering their constituents’ utility bills.

Enabled by legislation in states with deregulated energy supply markets, savings arise through a process called “energy aggregation.” It’s presently permitted in California, Illinois, Massachusetts, New Jersey, Ohio and Rhode Island, and is under consideration in several other states.

Under this energy procurement model, local jurisdictions exercise the option to pool — or “aggregate” — the electric load of their residents, businesses, institutions and municipal accounts. They then purchase electricity on their constituents' behalf, using the negotiating power of a large buying group.

As bulk buyers, participating municipalities obtain the supply deal that makes the most sense for their individual community or communities. Residents are always permitted to “opt out” of the group purchase — and continue to buy energy from their current supplier.

Pricing is competitive, and purchasing models can be tailored to suit a community's wishes. Qualified energy service companies (ESCOs) guide municipalities through the entire process to ensure satisfactory results.

For example, Plumsted Township, N.J., launched an aggregation program in January on behalf of its 8,400 residents. As a result, Plumsted has reduced its power supply charge by 14 percent under a one-year initiative that delivers annual savings of approximately $165 per customer. The sponsor of the New Jersey legislation that established the ability to aggregate said communities overall can expect to save “tens of millions of dollars.”

Some communities leverage their bulk purchasing power to achieve sustainability-related objectives. They’re purchasing renewable supply, cutting greenhouse gases, and in some cases tapping locally generated power supplies, which boosts local economic development.

Aggregation delivers across-the-board benefits. If your state permits aggregation, look into it. If not, local communities may want to consider advocating for it with their state representatives.

Richard D. Rathvon is vice president for retail commodity services for Valhalla, N.Y.-based ConEdison Solutions, one of the national energy service companies now assisting municipalities with their aggregation programs. Rathvon has more than 25 years of experience in the energy services industry, with a focus on retail energy businesses.

ConEdison Solutions is an energy services company that provides competitive power supply, renewable energy, sustainability services, and energy solutions for government, commercial, industrial and residential customers.

Editor’s note: Here are two resources from Wikipedia and the Sacramento, Calif.-based Local Government Commission that have more information on energy aggregation.

Learn about standard government energy aggregation programs in this video.

 

Tags: Administration Public Works & Utilities Smart Cities & Technology Commentary

Related


  • The uncertain future of community composting in New York City
    After roughly a decade of service in New York City, the last two community composting sites will not have their leases renewed. These sites are situated on land belonging to the city’s Parks Department: the Lower East Side Ecology Center is at Corlears Hook Park in Lower Manhattan, and Big Reuse is located under the […]
  • Biden’s relief plan includes $350 billion for local and state government
    President-Elect Joe Biden announced a $1.9 trillion relief plan Thursday to combat the COVID-19 crisis and the economic downturn it has caused. In addition to $400 million to combat the pandemic specifically, the proposal includes $350 billion for state, local and tribal governments that would help them to bridge budget shortfalls, help public works maintain […]
  • How Philadelphia is aiming for zero waste
    The city of Philadelphia has long collected data on city properties’ waste generation and leveraged it to improve waste management, but now it’s honing in on the commercial sector too, realizing this will be crucial to hitting Philly’s zero waste targets. Today it runs a voluntary program where both municipal and commercial operations do detailed […]
  • Florida county announces successful test of Motorola Solutions’ cloud-based P25 core technology
    A Florida county recently announced the completion of a successful test of Motorola Solutions’ CirrusCentral Core, the cloud-based secondary core for ASTRO 25 P25 systems that is designed to provide redundant reliability to the land-mobile-radio (LMR) network without the costs associated with a physical secondary core site. In Sumter County, Fla., the absence of a […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Cleveland launches program to create circular rconomy
  • In challenging year, working with public safety to move FirstNet forward
  • Shared governance: How pandemic partnerships can lead to progress and offer promise
  • Biden Administration – Projected 25x greater Investment in smart cities

White papers


How a unified HR system helps one public safety organization manage crews, payroll, and more in a single platform

7th January 2021

Your Roadmap to COVID-19 Funding

18th December 2020

The One Where Everyone Wins: A Mutually Beneficial Contracting Method

10th December 2020
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

The latest episode The Young Leaders Podcast focuses on Cyril Jefferson. Cyril is the youngest African American to… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

Hillsboro, Oregon is pioneering a new #renewableenergy generation technology through a partnership with… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

The impact of the #COVID19 pandemic on #telework was swift and profound. Now, the big question is whether – and to… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Get ready for the can't-miss webinar on how to kickstart your efficiency improvement plan with Luke Anderson of… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Among all states headed into the 2020 general election, which ones have voting populations that are the most demogr… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

We want to hear from you! Share your thoughts in our readership survey to help us shape future content so that we c… twitter.com/i/web/status/1…

23rd October 2020
AmerCityCounty

See how cities different approaches to distribute masks in their communities >> spr.ly/6010GAPLa

23rd October 2020
AmerCityCounty

While #facialrecognition is a powerful tool that can improve law enforcement efficiency, that doesn’t necessarily t… twitter.com/i/web/status/1…

23rd October 2020

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X