Norwalk officials address gas supply challenges with Columbia Gas and TC Energy

The Norwalk City Council convened on April 16, 2025, to address several pressing issues affecting the community, particularly concerning natural gas supply challenges and rising electricity costs.

The meeting began with a discussion on the natural gas supply situation impacting the Norwalk Precast Molds project. City officials reported that initial assessments from Columbia Gas indicated that simple upgrades to the gas distribution system would suffice. However, further communications revealed significant distribution and supply challenges. The city, in collaboration with the Huron County Growth Partnership, Team Neo, and Jobs Ohio, is actively seeking solutions to these issues. City administration plans to present a proposal for public improvements once further due diligence is completed later this year.

Following this, Chuck Heiper, CEO of NOPEC, provided insights into upcoming changes in the electric market that will affect the community. He highlighted that Ohio's electric rates are projected to rise due to a recent auction that saw capacity prices increase by 800%. This surge is expected to result in a 15 to 20% increase in electricity bills across the 13 states served by the PJM interconnect grid. Heiper explained that the increase stems from a backlog of auctions caused by the pandemic and ongoing regulatory challenges.

He also noted that while the current situation is concerning, efforts are underway to stabilize prices, including fast-tracking approvals for new natural gas plants and extending the lifespan of existing coal resources. He emphasized that the community's advocacy efforts are crucial in addressing these challenges and mitigating the financial impact on residents.

Council members engaged in discussions regarding the implications of data centers on the electric grid, with concerns about their potential drain on resources. Heiper indicated that while data centers could strain the grid, legislative efforts are underway to explore alternative energy solutions that could alleviate some of the financial burdens on consumers.

In conclusion, the meeting underscored the city's commitment to addressing critical infrastructure challenges and the importance of community collaboration in navigating the complexities of energy supply and costs. The council anticipates further developments as they work towards viable solutions in the coming months.