Loads can be aggregated in two ways. A single business that has control over many individual accounts can offer all of those loads to a seller. The California Electric Users Cooperative, which is combining the loads of individual agricultural cooperatives, is an example of multi-owner aggregation. The savings from aggregation need to be balanced against the costs of aggregation. First, the county can broker electricity sales.
Brokers act as agents, bringing together buyers and sellers.
A broker does not take ownership of electricity and, consequently, is not paid by customers for electricity service. Customers pay the owner of the electricity. An ESP does take ownership of electricity and is paid for that electricity by its customers. Because an ESP is in an on-going business relationship with its customers, it faces more responsibilities, costs, and liabilities than does a broker. These exemptions reduce some of the costs of aggregation for a public agency that decides to pursue that option.