Electric Deregulation

What Does It Mean To Ohio's Municipal Electric Consumers?

The deregulation of Ohio's electric industry began in January, 2001. Amended Substitute Senate Bill 3 is the legislation that allowed customers of Ohio's investor-owned utilities to choose whom they buy there power from, thus bringing competition to Ohio's electric marketplace.

Under Amended Substitute Senate Bill 3, Oberlin, who owns their municipal electric system (referred to as a public power utility), was allowed to make its own choice about whether, when and how to participate in electric deregulation. Ohio's 85 municipal electric systems (along with 24 rural electric cooperatives) were given this local choice option due to the unique nature of our consumer-owned utilities. Public power is reliable, local and yours.

A Valued Resource...

Our local public power system, Oberlin Municipal Public Power System (OMLPS) does a good job for its citizens and businesses. It's local. And most importantly, you own it - you control our service now and in the future.

OMLPS contributes to your quality of life. Free street lighting makes neighborhood communities safer and more inviting. Payments and in-lieu-of-tax contributions by OMLPS help support the community's financial bottom line. In general, OMLPS's support means local tax rates are held down because our community doesn't have to pay an outside, for-profit company to supply power.

Our community has made a substantial investment in our public power system. It is worth protecting now and for the future.

Reliable...

Public power is reliable. OMLPS is locally owned and operated, as a result we are able to respond to customer requests and emergencies quickly. Our crews are right here in town. The people who repair the lines, connect new service, process your bill and answer your questions know and understand our community. They are your friends, neighbors and relatives.

Local...

OMLPS is located in town and makes serving the local community its priority. OMLPS is part of our local government - accountable to local residents and businesses in a way that no outside electric supplier could be. Rates, policies and procedures are discusses openly at local city council meetings.

Yours...

As a part of our local government, OMLPS exists to provide reliable, affordable electric service to its customers - you the system's owners. Unlike other electric suppliers, we are not in the business to generate profits for shareholders. As a result, public power rates have traditionally been lower than those of privately owned electric suppliers.

Time Is On Our Side...

Oberlin's ability to make its own decision about participation the Ohio deregulation means time is on our side. While other states have experienced some of the pitfalls that accompany electric industry restructuring, Oberlin's electric service remains competitively priced and highly reliable.

At the time Amended Substitute Senate Bill 3 came into effect, Oberlin City Council took a wait and see approach to deregulation, thereby allowing our community the opportunity to gauge the affects of deregulation, thus making more informed and responsible decisions about which direction best benefits our community.

The decision for a wait and see approach was weighed carefully and with the following facts in mind:

• Competitive Rates - Oberlin's electric rates are extremely competitive as they are 30% less than the local investor-owned utility for residential service and 25% less for commercial service.
• Non-Pofit/Locally-Owned - OMLPS is a non-profit municipal utility that is owned by its customers and therefore any revenues exceeding expenses go back to the customer in the form of lower electric rates. There are no stockholders to pay or profit margin to be had. Because we are locally-owned by our customers, our purpose is simple: serving the customer by providing the most reliable, lowest-cost electricity possible. Locally-owned also means that our customers have a direct say, through our local elected officials, in our policies and procedures including electric rate settings.
• Own 50% Generation Capacity - Through our power supply arrangements with AMP-Ohio, Oberlin already owns almost 50% of their generation capacity; therefore, Oberlin electric customers are purchasing electricity based on actual operating and maintenance costs of those generation facilities plus dispatching.
• AMP-Ohio - This organization was formed in 1971 for the purpose of aggregating municipal utility loads to purchase and provide wholesale power supplies for its members. Due to our affiliation with AMP-Ohio, Oberlin wholesale power costs are extremely competitive.
• Free Services - OMLPS is able to provide a variety of free services while maintaining a competitive rate to our customers. Some of those services include:
  • City street lighting
  • Electricity for city facilities
  • Christmas lighting
  • Electricity for festivals and special events
  • Hanging banners for special events

If Oberlin decided to participate in electric restructuring, OMLPS would likely have to charge for these services as investor-owned utilities do today.

• Home Rule - The Ohio Constitution gives municipal electric utilities the right to exclusively serve their customers and the restructuring legislation recognizes both the constitutional powers and limitations of Home Rule in Ohio.
• Customer Protection - Oberlin provides consumer protections by being the sole provider of the electric commodity for its citizens to protect them against the pitfalls of negotiating and purchasing their own power supply. You have to look no farther than California to understand how difficult power supply procurement is.

These seven (7) considerations are still paramount today in Oberlin's decision to take a wait and see approach to deregulation and our decision has served us well. That decision will remain in effect until such time that true benefits can be derived by Oberlin customers through electric choice.