NOPEC Frequently Asked Questions

Q: What is electricity deregulation?
A:
An Ohio provision that took effect in January, 2001 deregulates the generation part of your electric bill. What this means for you is that for the first time you are free to choose your electric generation supplier. One provision of the new state law allows consumers to authorize their local government to become a public aggregator in order to purchase power for their consumers. In this way, the consumer gains greater leverage in the marketplace.

Q: What is NOPEC?
A:
Under the new state law, local governments may band together into an aggregation, or buying group. Nearly 126 communities in Northeast Ohio, including yours, have formed an aggregation, which has been named the Northeast Ohio Public Energy Council (NOPEC). Voters in these communities authorized this action in the November, 2000 Election. NOPEC is the largest such aggregation in the United States.

Q: What is the value in NOPEC for me?
A:
The theory behind public aggregation is simple: by using bulk purchasing power, greater savings can be passed on to individual consumers. By joining together, consumers in NOPEC communities gain the ability to utilize a team of experienced professionals to negotiate for better prices and protections. Through NOPEC, communities have a voice in determining how the market will change in the future and to make sure these changes benefit consumers. Large groups of communities such as NOPEC enjoy substantial leverage in making these determinations. Without an organization like NOPEC, consumers would be left to decide on their own which supplier to choose, and perhaps be forced to pay a higher price, as well as possibly standing by and watching as the market changes in ways that would erode potential benefits.

Q: Who is in charge of this group?
A:
Ultimately, the consumers themselves, through the views they express to their local elected officials. NOPEC is governed by a General Assembly, made up of one representative from each community. From this group an nine-member Board of Directors is elected, with one representative from each of the nine counties in the NOPEC service area. In addition, the General Assembly elects a Chairman and Vice Chairman.

Q: What does all this cost?
A:
NOPEC receives no public funds, and its member communities are not charged any dues or fees. The Chairman and Members of the Board of Directors serve without compensation. Administrative expenses, such as the cost of the opt-out mailings, are paid by the supplier.

Q: How do I join the buying group?
A: If you live in a NOPEC community, you are automatically included, unless you choose not to be. Ohio has what is called an "opt-out" procedure. This means that all eligible customers of an aggregated community become part of the buying group unless they take specific action to opt out of the aggregation. An opt-out Notice was sent to every eligible electricity consumer giving him or her this option.

Q: What if I did not receive an opt-out Notice?
A:
There are several reasons why some customers may not have received an opt-out notice. Customers may have previously signed a notice from FirstEnergy that prohibits them from releasing a customer’s information to independent suppliers. Customers may have also been inadvertently excluded from the database acquired from FirstEnergy. Although this category only makes up about 4 percent of the entire customer base, NOPEC is currently working to identify these missing customers and give them the same opportunity to enroll in the program. Customers who did not receive a notice and want to join the program should call NOPEC at 1-888-848-7914.

Q: What if I change my mind?
A:
All consumers who do not opt out are enrolled for a period of two years, after which they will be given another opportunity to opt out without having to pay a cancellation fee. Consumers who wish to leave before the two-year period has expired may be subject to a cancellation fee.

Q: What is the difference between NOPEC and other energy suppliers?
A:
Unlike the many private, for-profit concerns now marketing in Ohio, NOPEC is a public aggregation of local governments, with no goal other than delivering both savings and stability to the consumers it represents. To that end, it is concerned with a long-term approach to the energy market as well as short-term savings. NOPEC recognizes that long-term savings for consumers will result from regulatory changes and new laws that must be passed, and is dedicated to representing the interests of its consumers in seeking those changes.

Private, for-profit energy suppliers are focused on short-term offers. Their positions on regulatory changes and laws likely will be aimed at their own bottom lines rather than the interests of consumers.

Q: How should I compare offers from other energy suppliers with NOPEC's?
A:
One of the hallmarks of energy deregulation is that each consumer is free to make his or her own decisions, and all the factors involved should be carefully weighed. The difference in purpose between NOPEC and private suppliers is certainly one of those factors. In terms of pricing, consumers should be wary of gimmicks and "loss leader" giveaways, in which short-term savings are promised, with no long-range guarantees of continued savings.

Q: Who will deliver my electricity once I choose a new electricity supplier?
A:
If you choose a new electric supplier, your local electric utility will continue to deliver the electricity to your home or business. Your local electric utility will also continue to maintain and repair the poles and wires. You should continue to call your local electric utility if your power goes out. The Public Utilities Commission of Ohio will still oversee the safety and reliability of your service.



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