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City locks 48‑month electricity contract as prices rise; staff urged local renewables exploration
Summary
The commission approved a 48‑month electricity supply agreement with Dinergy Energy Services East LLC for select city facilities and streetlights, citing market capacity spikes and a recommendation to lock current competitive pricing.
The Springfield City Commission authorized a 48‑month electricity supply contract with Dinergy Energy Services East LLC for selected city facilities and streetlights for a not‑to‑exceed amount of $6,116,381.
City staff told commissioners that wholesale capacity costs in the PJM market recently spiked and that a competitive fixed price offer from Dinergy (listed in the agenda as Dinergy Energy Services East LLC) averaged $6.93 per kilowatt‑hour for the contract period the supplier offered. Staff said that compares with the city's current average of about $4.85/kWh (rates effective October 2021 through September 2025) and would raise the city's annual electricity cost from roughly $1.1 million to about $1.5 million. Staff said Ohio Edison’s tariff price would have been higher still and that market prices were expected to increase; staff therefore recommended locking in competitive pricing now.
The commission declared the item an emergency and approved the contract by roll call. Commissioners and one audience member urged continued attention to alternative energy. Commissioner David Estrop said the city should explore local alternatives to conventional generation and noted House Bill 6's legacy in Ohio energy policy. Resident Larry Ricketts told the commission his household runs net‑metered solar and encouraged the city to study utility‑scale solar fields, pointing to examples in nearby communities.
Staff said the chosen competitive contract will cover October 2025 through September 2029 and that pricing was held only briefly in a bullish market; procurement staff said the city's broker recommended securing the price. The city will continue to monitor opportunities for community energy projects and report on program options, staff said.
