Norwood council approves electric aggregation program; officials say opt-out plan can reduce bills

Norwood City Council voted to adopt an electric aggregation ordinance that authorizes the mayor and safety/service director to negotiate and sign an electric-supply contract recommended by Energy Alliances Inc., the city’s energy consultant. The ordinance passed after council suspended the rules to allow all three readings and then approved final passage; the roll call recorded a 5–1 outcome (five yes, one no).

City staff described the program as an ongoing, opportunistic procurement strategy: the city’s aggregator will compare market offers and sign a short-term supply contract when it provides a lower rate than the incumbent utility or otherwise benefits residents. Under the plan, residents are automatically enrolled but may opt out at any time; those who do nothing will see their supply served under the negotiated aggregation rate.

Mr. Powers, a city staff member involved with the program, told council the current community rate is about $0.067 per kilowatt-hour but that near-term market prices may rise to about $0.09 per kWh. He said the city will only sign a supplier contract when it is advantageous, and the administration has the option to remain on Duke Energy’s basic service if aggregation offers are unfavorable. “Once we know what [Duke] is going to be, we’ll be able to do those comparisons,” Powers said.

Deputy city staff and community commentators urged prudence. City official Mr. Bonsall noted aggregation has produced local savings in the past and recommended officials “be very judicious” when moving to a new supplier if rates were only marginally better than utility default service. Discussion also covered a statewide “capacity charge” and broader market…