In light of impending electricity rate increases, several civic organizations say they want to buy their power in bulk.
Area utility brokers and aggregators said they?ve been hearing from residents worried about the planned 72 percent rate increases for mega-supplier Baltimore Gas & Electric Co.?s 1.2 million customers. Though they frequently organize group buying for business cooperatives, officials said residential aggregates are a new concept.
“There is a significant interest, and we?re working in the direction of forming residential cooperatives,” said Richard Anderson, principal of the Columbia-based CQI Associates LLC.
Energy experts said that legislation ? a proposed agreement between Gov. Robert Ehrlich and BGE parent company Constellation Energy ? would likely only mitigate inevitable rate increases after electricity price caps expire June 30.
That has community groups like Howard County?s Columbia Association scrambling for a solution.
After hearing a doomsday presentation on electrical production in the fall, Board Member Phil Marcus said members began asking area consultants to help organize a group-purchase for more than 30,000 homeowners in the association. He said they hope to have a discount supply in place by July 1.
Members of the Reisterstown-Owings Mills-Glyndon Coordinating Council said they?d also like to start a co-op, mirroring one established two years ago in the community?s Chamber of Commerce. But the process is tedious, they said.
“If we can do it, we?re going in from ground one,” said Council President Calvin Reter. “We?ve got to do all the planning and figure out how we?re going to do it and how much it?s going to cost to be a member and how much we?re going to save.”
Some experts, however, said cooperatives don?t necessarily save consumers money.
Principals at South River Consulting LLC, one of the region?s largest energy consulting firms, said they are also considering “residential portfolios,” but said it?s too early to tell if the idea is a good one. They cautioned buying in bulk “socializes” shopping for a supplier that suits distinct needs.
“Some folks wind up subsidizing other folks,” said Mark Schroeder, an energy development expert. “Some people are very efficient users and wind up paying more than if they are individually charged. Those who are egregious users might end up paying less.”
