What Happened?
Cities nationwide are finding unique ways to reduce energy costs for residents while improving long-term sustainability.
Sidney
The Sidney City Council in Ohio has proposed a program designed to save money on residents’ electric and natural gas bills. The governmental aggregation initiative calls for the merging of all retail electric and natural gas loads of local residents and small commercial businesses into a single entity. This consolidation would then negotiate a rate with a competitive energy supplier in an effort to reduce overall costs through group purchasing tactics, Sidney Daily News reported.
Under the proposed strategy, Sidney would not acquire or sell any electricity or natural gas to residents and small businesses. Rather, the municipality would be in charge of contracting with an energy supplier that offers a more affordable rate for services. The city would negotiate this rate on behalf of the collective residents and commercial district. Because the city would be seeking a contract for a large number of permits, a lower rate is likely to be agreed upon by the energy supplier, Sidney Daily News reported.
Most municipal aggregation projects are either opt-in or opt-out:
- Opt-in: Requires residents to proactively agree to join the aggregation
- Opt-out: All eligible residents and businesses are automatically included in the program, and must proactively remove themselves if they choose not to participate
The Sidney City Council decided the plan would be an opt-out municipal aggregation. When the proposal was announced, two nearby villages expressed interested in being included in the governmental aggregation strategy, Sidney Daily News reported.
Hamilton
Elsewhere in Ohio, Hamilton is launching a new energy program that will also reduce utility bills for residents and local businesses. Hamilton entered into a three-year contract with Efficiency Smart to offer an energy efficiency program for all local utility customers, Journal-News reported.
Over the next three years, the city will spend $2.3 million on the contract, which will be paid for by the city’s recently $139 million sale of 48.6 percent interest in a local hydroelectric power plant. Efficiency Smart services will residents and businesses with products and services to help reduce energy consumption and improve efficiency including:
- Electrical efficiency improvements by local contractors
- Discounts on energy efficient lighting
- Rebates for energy efficient appliances and equipment
- Free appliance removal
- Home energy audits
- Lighting controls
- Improvements to refrigeration and electric heating
Furthermore, Efficiency Smart will provide useful tips and best practices for utility customers to further reduce unnecessary energy consumption.
Bristol
In the UK, the city of Bristol has plans to establish a municipal energy company that would be wholly owned by the city council. The goal is to ensure local residents will have a more trustworthy, accountable energy provider that will keep rates affordable, while delivering social, economic and environmental benefits, Renewable Energy Magazine reported.
Under the proposed business plan, the Bristol energy company would offer:
- Competitive and simple energy tariffs for customers
- All profits reinvested back into local communities
- Low carbon electricity as a greener energy source
- Power sourced from local places
- Investment in clean energy across the region to increase sustainability
The Bristol energy company would also be involved in the installment of district heating networks that use underground pipes to deliver clean heat to private and public sector buildings. The company would play an integral role in lowering energy use, increasing efficiency and boosting job growth in local communities, Renewable Energy Magazine reported.
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