What is municipal aggregation?

Aggregation in general refers to many customers joining together to form a buying group. Municipal aggregation refers specifically to the situation where a municipality organizes the pooling of its citizens to become the buying group. The municipality then seeks out offers on behalf of its constituents to get better pricing, terms and services than would be available to an individual.

Types of Programs

• Opt-out: Trebel helps communities successfully execute one of two programs. By far the most effective is the “Opt-out” program where all residents and small businesses are automatically enrolled. Individual members may choose to opt out if they decide not to participate. An opt-out program must first be placed on a primary or general election ballot and approved by a majority of voters before an aggregation can be implemented.
• Opt-in: The second program is one where residents and small businesses can choose to “opt in.” Once the local government has negotiated a program, individuals can begin signing up to participate.

How does it work?

In order for a Township to create an aggregation program, a referendum must be approved by a majority of voters. The Board of Trustees approves a resolution providing for the referendum question to appear on the elections ballot. The referendum question is stated thusly:

Shall the Township/City/Village have the authority to aggregate the retail electric loads located in the Township/City/Village, and for that purpose, enter into service agreements to facilitate for those loads the sale and purchase of electricity, such aggregation to occur automatically except where any person elects to opt out?

Once passed, all eligible residents and small businesses in the community will be enrolled and will begin receiving the discounted generation pricing under the program. Residents do not need to do anything to join the program. However, anyone who does not want to participate in the program can easily opt out by returning a form, which will be mailed to all eligible members.