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1. Why is the City creating its own 100% renewable electric aggregation program?

The City has offered residents and small businesses in Shaker Heights the option to participate in an opt-out electric aggregation program since 2001, when the City joined the Northeast Ohio Public Energy Council (NOPEC). In November 2000, Shaker Heights voters passed by 77 percent a ballot measure that authorized the City to offer an opt-out electric aggregation program.

Now, as part of its ongoing sustainability efforts, the City has elected to offer its own opt-out electric aggregation program. This program will offer 100 percent renewably-sourced or “green” electric supply for eligible customers in Shaker Heights. This program will replace the City’s current electric aggregation program with NOPEC.

A 100 percent green opt-out program would make that supply the default for electric supply for any resident or small business that does not pro-actively elect another option. Switching to a 100 percent green opt-out program would further the City’s intentions of reducing greenhouse gas emissions to address the climate crisis and aligns with recent initiatives such as our LEED for Cities certification and Power a Clean Future Ohio.

2. When will the 100% renewable electric aggregation program be available?

The program will be available to eligible customers starting in June of 2023.

3. Who is eligible for the 100% renewable electric program? Who is not eligible?

Note: The program is only open to eligible customers in Shaker Heights.

The following customers are eligible for the City's aggregation program:

• Customers currently enrolled in the NOPEC program; OR
• Customers on the CEI standard service offer.

The following customers are NOT eligible for the program:

• Customers on Percentage of Income Payment Plan (“PIPP”)
• Large commercial customers
• Customers on a contract with an electric supplier

4. How can eligible customers sign up for the 100% renewable electric program?

Eligible customers will receive an “opt-out” notice with information about the new electric aggregation program in mid-April 2023. Eligible customers that do not opt out by following the instructions in this notice will automatically be enrolled in the program 21 days after receiving this notice  (i.e. starting with the first electricity billing cycle in June 2023).

5. What if I receive the opt-out notice, but do not want to be in the electric aggregationprogram?

This program is optional. Eligible customers who do not want to join the program should follow the instructions in the notice to opt out of the program. Eligible customers who opt out will not be enrolled in the program.

6. What if I do not receive an opt-out notice?

If you do not receive an opt-out notice, you are not eligible for the program. If you believe this is an error, or you are a new resident, or newly in your current home, contact the City at 216-491-1440.

7. What if I want to enroll but am not eligible for the program because I am on a contract with another electric supplier?

You will have to terminate your contract early or wait until your contract ends and then enroll in the City’s electric aggregation program. Please note that some suppliers charge an early-termination fee.   

8. Am I obligated to remain in the program if I enroll?

No. Customers may leave the program at any time. There is no early termination fee.

9. Why make it opt-out?

When voters passed the ballot measure in November 2000, they authorized the City to form an opt-out electric aggregation program. Under Ohio law, an opt-out governmental aggregation program automatically enlists customers who are eligible without any action by the customers, after the required notice is sent out to them. This results in a large “buying group” that can negotiate for better rates than individual customers.

10. What will the cost be for this new 100% electric aggregation program?

The City's rate for its electric aggregation program can be found on the City's webpage: Electric Aggregation Program

11. Won’t a 100% renewable electric program be more expensive?

Not necessarily. The City has seen with its own electric service for its facilities, which the City has bid out independently, that 100 percent green power has been very competitive, and even lower in cost, than non-green power offerings. Additionally, the City does not charge any overhead or marketing expenses to keep the rates as low as possible.

12. What does 100% renewably-sourced electric mean exactly?

In the current market for renewable energy, 100 percent renewable electric power supply must be provided for an independent aggregation program, like the City is creating, through the purchase of Renewable Energy Credits (RECS). It is an additional goal of the City that 100 percent renewable power supply using RECS should be provided only through Green-e RECS, which are independently verified through a third party and are generally a requirement of certification programs like LEED for Cities (Shaker Heights is LEED Gold certified in this program). Ultimately, the City hopes to source power from newly-built renewable energy projects, ideally within the State of Ohio. There is currently more demand than supply for large renewable projects in Ohio, so it may take several years before this is possible.

Until these new projects are available, the City will contract for Renewable Energy Credits. This means that for every electron used in the program, a corresponding electron was generated through wind or solar somewhere in the U.S. and fed into the grid. Since there is no difference in electrons, a REC is how we establish that the electrons we are using have been offset by renewably-generated ones somewhere on the grid. This is verified by an independent third party.

13. Why not just stick with NOPEC? Doesn’t it offer a 100% renewable plan?

Under a City-operated program the City would have more flexibility to select a supplier, and the term of the contract and rate. We believe the current market provides an opportunity for the City, as a smaller scale aggregation program, to obtain RECs and have a better chance to meet the City’s goals as an independent aggregation program. The City will have more flexibility to go out into the market to seek RECs, and provide supply with very little overhead and no administrative fees being charged to participants.

Experience with the City’s gas program has found that the City’s gas rate has been below NOPEC’s gas rate about 70 percent of the time over the years. Partly this is due to lower overhead for the City’s program. NOPEC costs — administrative, advertising, legal, and programmatic — are paid for through the rates charged to participants.

The market for green power is growing. There may be opportunities for renewable energy for a smaller aggregation that are not available to an aggregation with a much larger load profile. It is expected that there should be a greater availability of Ohio-based renewable power generation by 2026, with negotiations for those supplies commencing in 2023.

Additionally, with its own program, the City would have the flexibility to design specific features that it and residents value. For example, it could elect to source the power from a supplier that generates the electricity within Ohio. This would retain more of the environmental benefits – such as cleaner air and clean energy jobs – within the state and closer to the City.