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Worthington renews electric aggregation framework; staff recommends 12‑month supply contract with 100% RECs amid rising capacity costs
Summary
Council approved a resolution authorizing staff to pursue a renewal of the city’s electric aggregation supply agreement with 100% renewable energy certificates for a 12‑month term; consultant told council wholesale capacity prices have surged and recommended a short contract to preserve flexibility.
Worthington City Council voted March 17 to authorize renewal of the city’s electric aggregation program and allow staff to execute a supply agreement consistent with the criteria in the resolution, including a 12‑month term and 100% renewable energy certificates (RECs).
City Manager Stewart introduced an Energy Alliances consultant who briefed council on market conditions and recommended a 12‑month contract because capacity auction prices — the wholesale signal that pays for guaranteed generation capacity — have risen sharply. The consultant said capacity prices have climbed roughly ninefold from earlier levels and will likely remain elevated for one to three years, driven in part by new, high‑demand customers such as data centers.
The consultant explained PJM Interconnection runs capacity auctions to ensure sufficient generation and that the capacity charge is passed through to suppliers and then retail customers. He said the city’s current program historically delivered significant savings; since inception the typical participating household saved about $752 compared with the utility default rate and the community saved roughly $3.5 million total. Still, he said the current forward market uses higher capacity placeholders, so the consultant recommended a 12‑month term to avoid locking the city into multi‑year prices that may be above future market levels.
Staff also noted the program’s existing consumer protections: customers can opt out at any time without charge, and participating supply agreements include net‑metering support and budget billing. The resolution requires 100% offset by renewable energy certificates and no termination fees. Council approved the resolution by voice vote.
City staff said the resolution authorizes the city manager to sign a supply agreement consistent with the council criteria and that the specific market price would be set in the executed contract. The consultant recommended re‑bid in no more than 12 months so the city can revisit pricing if capacity and wholesale markets improve.
