Delaware County approves 36-month partial price lock with FreePoint Energy; capacity charges drive roughly $346,000 increase

The Delaware County Board of Commissioners on April 28 approved a customer supply agreement with FreePoint Energy Solutions for electrical generation that locks part of the county's supply at fixed prices for 36 months, county finance staff said.

Justin Nobby, Delaware County director of finance, told commissioners the county worked with consultants to structure three contracts with FreePoint covering different groups of accounts and consumption levels. "We're projecting about a 15.5% increase, even with this bid process. So that equals about $346,000 going into the renewal period," Nobby said.

The contracts are structured in three parts: a contract covering the county's largest utility accounts — which Nobby said account for roughly 90% of the county's electric consumption, and include the Courthouse, Hayes, the Carnegie Building and BDD — a second group for smaller accounts representing about 10% of consumption, and a third agreement that locks in pricing for 50% of supply for 36 months while leaving the remaining 50% exposed to market rates.

Commissioners asked whether the 15.5% increase applied to the generation portion only or to the county's total utility bills. Nobby said he compared the consultants' budget estimate to the county's actual 2024 expenditures for the same accounts and that the 15.5% figure reflects the total utility cost compared with last year.

Fritz Drake, a consultant identified in the meeting as representing Sayoda Energy, explained a large share of the increase is coming from higher capacity charges. "It's like an insurance premium that you pay to be on the grid when the grid is maxed out at its hottest time of the year or coldest time of the year," Drake said. He said capacity costs for the county rose from $55,732 in fiscal 2024–25 to $410,630 for fiscal 2025–26, an increase Drake described as roughly eightfold, and that capacity constitutes about 20% of a typical electric bill.

Drake and county staff said capacity prices are set by auction administered through PJM, the regional grid operator for 13 states including Ohio, and noted that capacity prices are adjustable annually and can be set for multi-year periods by auction results. County staff said the new higher capacity rates go into effect June 1 for the upcoming rate period and that future auctions may hold prices near current levels or be lower.

During discussion, commissioners and staff also cited broader demand-side pressure, including data-center growth, as a driver of increased capacity pricing. Staff stated the county did not include accounts on consolidated billing in the contract calculations.

The board voted on the motion described on the record as "motion 2 5 dash 3 1 4," approving a customer supply agreement between FreePoint Energy Solutions and the Delaware County Board of Commissioners for electrical generation. Commissioners Benton, Lewis and Merrill each voted "aye," and the motion passed.

County finance staff said they would provide follow-up calculations comparing the generation-only and total-bill impacts and relay additional consultant analysis.

The board had no other business on the reconvened 1 p.m. session and adjourned.