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HUDSON, Ohio — Hudson voters will decide in November whether to give the city the authority to establish an opt-out natural gas aggregation program after City Council approved placing the issue on the ballot.
Council approved the ordinance on its third reading on Tuesday evening.
Councilmember Kyle Brezovec made the motion to pass the ordinance, which was seconded by Council President Michael Bird. Councilmember Skylar Sutton cast the lone dissenting vote.
The legislation received its second reading during council’s July 14 meeting before advancing to final approval.
If approved by voters, the measure would authorize the city to establish a governmental natural gas aggregation program, allowing Hudson to negotiate natural gas supply rates on behalf of eligible residents and small businesses. Customers would be automatically enrolled in the program but could opt out at any time.
A “yes” vote would not immediately create the program or enroll residents. Instead, it would give the city the authority to establish an opt-out aggregation program in the future.
Before any program could begin, City Council would have to adopt a plan of operation and governance, hold at least two public hearings and provide residents with information about rates, contract terms and opt-out procedures. Eligible customers would retain the option to leave the program.
“We’ll feel good about the results of the vote, no matter how they go, that the public has been well informed,” Bird said during the meeting.
The proposal follows months of discussion after Hudson was unable to offer a natural gas aggregation program to residents last winter.
The city had offered an opt-in natural gas aggregation program since 2014, but officials said the number of suppliers willing to participate has declined. Hudson’s longtime provider, Constellation, stopped offering residential service after about a decade.
The city then worked with Eastern Power & Gas, but that agreement ended when the provider “broke their contract,” Hudson Public Works Director Kevin Powell said at a May 26 workshop. Hudson explored an agreement with Major Energy but was unable to move forward.
Powell has said an opt-out aggregation program could give the city access to more suppliers and improve its ability to negotiate lower natural gas rates for residents, particularly during the winter heating season.
“We’re looking to save dollars for the residents,” Powell said during a May council workshop.
Buckeye Energy Brokers President Thomas Bellish told council in May that the proposed program would include consumer protections, including a 21-day opt-out notice and no early termination fees. He said most savings would likely come when supplier contracts are renewed, and residents could leave the program at any time if they preferred another supplier.
Under Ohio law, communities must receive voter approval before establishing governmental aggregation programs.
If voters approve the measure in November, Hudson would be able to seek bids from natural gas suppliers and determine whether to move forward with an opt-out aggregation program following the required public process.
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