Gabel Associates, which was retained by the Maryland PSC to review the potential for an opt-in electricity affordability program (state-endorsed opt-in aggregation similar to the program in Delaware, see Delaware program details here), touted the benefits of opt-out municipal aggregation in the report, and, while noting that the opt-out nature may be controversial, urged the PSC to consider opt-out aggregations in light of alternatives to assure affordability, such as the complete prohibition of shopping by low-income customers

On its website, Gabel Associates touts its "unmatched" capabilities in acting as a consultant for opt-out municipal energy aggregations

In its report on an opt-in program to the PSC (PC47), Gabel Associates said in a footnote concerning opt-out municipal aggregation that, "Despite its shortcomings, based upon experience and based upon input from several suppliers, an opt-out type of model does appear to offer the potential for greater savings to consumers than may exist in the 'direct-access' retail market."

"Moreover, an 'opt-out'-based electric supply contract that results in long-term savings for participating customers and includes all necessary consumer protections as established by the procuring agency, if one can be obtained, should be juxtaposed against other alternatives, particularly as it pertains to low-income customers, such as the status quo of low income customers shopping on their own in the direct access market, or actions taken in some states on the other end of the spectrum prohibiting customers on assistance programs from participating in the retail choice market altogether, and/or being pooled into a low income customer-specific contract from which there is no ability to opt-out," Gabel Associates said

It should be noted that in Ohio, one of the states cited by Gabel Associates as prohibiting certain low-income customers (those on PIPP) from participating in retail choice, such prohibition applies to opt-out municipal aggregations as well, and PIPP customers must be excluded from municipal opt-out aggregations

Tags:
Maryland   Municipal Aggregation   Opt-Out Aggregation  

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