Middletown to renew electric and gas aggregation; residents likely to keep modest savings amid rising capacity costs

MIDDLETOWN, Ohio — City Council on Aug. 5 approved emergency ordinances authorizing the city manager to renegotiate electric and natural gas aggregation contracts and to authorize a procuring agent for smaller municipal electric accounts.

Rich Saros of Energy Alliances told council the city’s electric aggregation program, in place since 2023, has saved participating residents about 16.5% on generation costs compared with the utility default and roughly $2.4 million in combined savings to date. The current electric contract offers generation at 6.77¢/kWh while Duke Energy’s default generation was 10.43¢/kWh at the time Saros spoke; Saros said suppliers’ offers for the upcoming term are higher because capacity costs have risen sharply in recent auctions.

Saros said the proposed new price would be in the neighborhood of 9.25¢/kWh — still generally cheaper than Duke’s projected price — and estimated average resident savings around $12 a month under the new offer beginning in December. For natural gas, the consultant recommended a roughly 0.6499 $/therm price bundled with other communities for a 12‑month contract to provide price stability through the coming winter.

Council also authorized 1Power Energy Services to procure electric generation for smaller municipal accounts; staff said this will allow the city manager to lock in best available market prices quickly as electricity offers can change daily.

Saros explained the primary driver of higher prices is capacity — market payments to ensure enough generation exists and stays online — and he said the higher capacity costs are expected to persist through the next two years. He encouraged residents with questions to consult the city’s Energy Alliances page or call their operations number.