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Worthington council renews 12-month electric aggregation plan with 100% renewable offsets amid capacity‑price uncertainty
Summary
Council approved a resolution to renew the city’s electric aggregation for a 12‑month term with 100% renewable energy certificates, after staff and consultant Energy Alliances described higher capacity auction prices that drove recent increases in supply offers and recommended a one‑year term to preserve flexibility.
The Worthington City Council voted on March 17 to renew the city’s electric aggregation program for a 12-month term and to continue offsetting customer supply with 100% renewable energy certificates. Council adopted Resolution 8-2025 by voice vote.
City Manager Ms. Stewart introduced the item and brought forward consultant Rich Shreyes of Energy Alliances to summarize market conditions and the staff recommendation. Shreyes said capacity prices — the wholesale charge that signals generation adequacy in the PJM market — have risen dramatically and are driving much of the recent increase in supply offers. He recommended a 12-month term to avoid locking the city into higher front‑of‑curve capacity costs for multiple years.
"Capacity prices have increased significantly, really, up about 9 times from where they are right now," Shreyes said, describing the broader market and predicting at least one to three years before relief.
What the renewal authorizes Ms. Stewart clarified the resolution gives the city manager authority to sign a supply contract consistent with council direction rather than locking to a single fixed price presented at the meeting. The resolution specified program features the council requested: a no‑charge opt‑out for customers, renewal of 100% renewable energy certificate offsets, and vendor requirements such as net‑meter handling and budget‑billing support.
Why staff favored a 12‑month term Shreyes told council the municipal aggregation program has saved the average participant money over the life of the program and that continuing the renewable offset remains possible. However, he said the unprecedented jump in capacity prices makes a multi‑year fixed commitment risky. "Our recommendation was only for the 12 months because... just so much uncertainty going on," he said.
Council action Councilmember Herman moved to adopt Resolution 8-2025 and Councilmember Lloyd seconded. The council approved the resolution by voice vote.
What happens next Staff will execute a supply agreement consistent with the resolution’s criteria if market conditions and bids align with the city’s stated preferences. The city will again seek proposals before the next term expires and may revisit term length if capacity prices stabilize.
