Xenia to renew electric aggregation; city signals higher rates ahead as capacity costs rise

Xenia staff told council Sept. 25 the city will not renew its gas aggregation program when it expires in November but intends to continue an electric aggregation plan this winter, with automatic opt‑in enrollment for residents who are not otherwise under contract. Staff warned that electric aggregation rates are increasing and highlighted capacity‑cost spikes that staff linked to growing data center demand.

Finance/electric staff (referred to in the meeting as Mr. Duke) said gas aggregation has produced little benefit for residents recently, so the city will allow that program to expire. Residents who do not take action and are not under an individual supplier contract will move to their utility’s standard service (CenterPoint for gas), Duke said.

On electric aggregation, Duke said the city plans to solicit a new supplier and use an opt‑out enrollment process: residents who are not under individual supplier contracts will receive an opt‑out letter and will automatically be enrolled if they do not opt out. He said the current aggregated electric rate is about $0.063 per kilowatt‑hour; recent bids indicate new rates near $0.093 per kilowatt‑hour, though market prices vary daily and the city could lock rates shortly.

Duke said a primary driver of higher electric prices this cycle is a jump in capacity costs — from approximately $29 (previous cycle) to roughly $260–$270 — and he attributed much of the increased capacity demand to data centers consuming more electricity. Duke cited a figure reported in the meeting that data centers account for about 4.4% of U.S. electricity consumption today with projections rising substantially by 2035. He said the city’s aggregation program remains likely to offer a price below some standard supplier offerings, but residents should expect higher rates than in previous years.

Duke told council that electric enrollment under the new contract would be effective with the January billing period (in practice through the December billing cycle) and applies to customers inside the incorporated city limits only. Commercial customers and very large users may be excluded depending on usage thresholds. He said staff will communicate to residents through opt‑out letters and public messaging and will assist recently moved residents who are not automatically enrolled.