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Council declines to switch Hudson to an opt-out gas aggregation and will keep pursuing opt-in options
Summary
After staff and the city's energy broker warned of market volatility, council decided not to pursue an opt-out natural-gas aggregation model and instead to continue exploring opt-in suppliers; members also asked staff not to be the party to terminate the current supplier contract.
Hudson City Council on April 8 reviewed the city's residential natural-gas aggregation program after the supplier notified the city it could not continue to hold the previously agreed rates. Broker Tom Belish (Buckeye Energy) and city staff briefed council on market conditions and on two broad program options: (1) retain and re-solicit opt-in service to eligible residents, or (2) move to an opt-out aggregation that would automatically include most residential accounts unless a customer opted out.
Staff and the broker said market volatility and unusually high winter usage had strained supplier positions and that at least one supplier notified the city that it could no longer provide previously quoted rates. City staff recommended that the city pursue another opt-in solicitation over the summer and not move to an opt-out model; several councilors concurred.
Councilor Howard said he preferred remaining opt-in and also recommended that the current supplier be the party to cancel any contract rather than the city taking the procedural step to terminate. Staff withdrew a draft resolution to cancel the contract from the consent agenda and said they would pursue an opt-in solicitation this summer.
No vote was required on a formal change to policy during the meeting; the council directed staff to continue working with its broker to seek competitive opt-in offers and to avoid initiating an opt-out conversion or filing a termination motion on behalf of the city.
