 |

Aggregation
is a banding together of customers to purchase goods and services.
Energy Aggregation offers individuals the ability to enhance their
buying power with competitive energy suppliers by grouping their
energy usage into a larger buying group.
Since
the deregulation of Maine's electricity utility industry, effective
March 1, 2000, electricity consumers statewide have been able to
choose an electric generation provider from the open market. While
many consumers opt for the "Standard Offer Service" or
default price, others choose to seek pricing in the competitive
market and enhance their attractiveness to competitive energy
providers by joining other organizations in their purchase of
electricity.

Aggregations
can generally be classified into two primary models or types,
Endorsement and Committed-Participation. An Endorsement occurs when
a supplier is chosen as a "provider of choice" for a
particular group with no real commitment from the members. A
Committed-Participation Aggregation, members commit to purchasing
energy from the awarded supplier prior to knowing the details of the
supply offer. Maine PowerOptions is a combination of the endorsement
and committed participation models, offering the services of the
committed-participation model without the pre-commitment. The load
data or energy usage information is compiled, the RFP issued, and a
master agreement is reached with a supplier outlining the supplier's
responsibility to those members choosing to participate. It then
becomes the option of each member of the aggregation to enter into a
supply agreement with the winning supplier. While the
supplier-community generally values an up-front commitment, they are
still receiving the other benefits present in the
committed-participation model and will rarely pass up the
opportunity to bid on a large group of energy users.
|