Aurora approves plan for electricity aggregation

Aurora City Council approved a plan Tuesday night that will govern the process of electricity aggregation as the city seeks bids from power suppliers on residents’ behalf.

The plan details what will be required of potential suppliers, how a supplier will be chosen and how residents will be notified of their ability to opt out of the aggregation program.

Under the plan city council approved Tuesday, residents will receive two opt-out notices, and will have 10 days after either the postmark date or the letter date of the second notice, whichever is later, to make a decision.

Javier Barrios, managing partner of Good Energy, the New York firm Aurora hired as a consultant, said suppliers often are willing to let residents opt out of the program even after the deadline.

“The suppliers will be reasonable in those situations to let them out,” Barrios said. “If you have a very few that are opting out, it’s not going to affect the aggregation.”

The plan says residents who move out of Aurora during the aggregation contract may be charged a cancellation fee of about $25, but anyone who moves from one Aurora location to another will not be charged.

The plan also has a section about green power and renewable energy, beginning with the statement “Aurora will integrate renewable energy into the program to the maximum extent that is reasonably and economically possible.”

While aldermen made one change to the plan Tuesday night, altering the time residents will be given to opt out of the program, the green power section of the plan is what drew public speakers.

Four residents encouraged aldermen to favor renewable energy, especially if prices are similar.

“If the difference is such a minute amount, please consider the best bargain, not just the best price,” resident Fran Caffee said, adding she thinks energy that’s better for the environment is the better bargain.

The goal of electricity aggregation is to find lower prices by combining thousands of residential and small business accounts into one account for an entire municipality. But proponents of green energy say it’s possible to experience savings from the current rates even if slightly more expensive sources of power — such as wind or solar — are chosen.

Finance Director Brian Caputo said approval of the plan will allow the city to begin seeking prices from power suppliers in May.

“This will be the starting point to enable us to bid,” Caputo said.