Bexley council amends and approves ordinance to preserve flexibility on electric aggregation

BEXLEY, Ohio — After an hourlong discussion about market timing and resident bills, Bexley City Council on Feb. 25 amended and approved Ordinance 05-25, which governs the city’s electric aggregation program. Council added language allowing the mayor to execute a supplier contract subject to Board of Control approval.

The change came after presentations from two Aspen Energy representatives and extended questioning about whether the city should sign a new aggregation contract now or let the current program lapse, monitor American Electric Power’s (AEP) upcoming auction results and then move quickly if market conditions make aggregation advantageous. Mayor Kessler and council members repeatedly said they worried about enrolling residents in a new aggregation that could be more expensive than AEP’s price to compare for the first month, while brokers said longer-term savings remained likely.

The issue matters because roughly the majority of Bexley households are currently in the city aggregation and would revert to AEP’s standard rate if the city lets its aggregation lapse. Aspen Energy and the city’s broker described timing constraints: to avoid a lapse that would send many accounts back to AEP, the city would need to execute an agreement by March 7 for a May start; otherwise a restart would likely take effect in August or September. Council members explored a third option: pass an ordinance now that authorizes the mayor to act, but require Board of Control approval (a smaller joint decision body) before executing a contract so the city could move quickly after AEP’s auction but not bind itself prematurely.

Council members asked detailed questions about the scale and risk. Aspen Energy representatives said sample bids in the room showed a low bid at about 9.3¢/kWh for a 13-month term; council discussed that if AEP’s price-to-compare in May were substantially lower, customers could see at least one month of higher bills under a new aggregation before savings might begin. Council members also asked how many customers are affected; participants estimated roughly 3,472 households (about 70–80% of Bexley households) were currently on the incumbent supplier. The mayor and staff emphasized the need for careful resident communications if the city paused aggregation and customers received a notice from AEP that they had reverted to the utility’s price.

Council Member Hurley moved an amendment to add the words “subject to Board of Control approval” to section 1 of the ordinance; the motion was seconded by Council Member Marcelino and passed on roll call. Council then moved and seconded adoption of the amended ordinance; after a brief public comment in support of the proposed approach, the adoption passed on roll call.

Council’s action preserves flexibility: staff and the city’s broker will continue to monitor auction results (the next major auction was March 4), and the mayor, with Board of Control approval, will be authorized to execute a contract if market conditions support it. Council members asked that staff prepare clear communications for residents explaining the pause, what to expect from AEP correspondence, and that residents can opt out individually if they prefer not to participate in a future aggregation.

Council members and the administration said the goal is to avoid enrolling residents into a program that is clearly and predictably more expensive at the outset, while retaining the ability to move quickly if the market provides a better rate than AEP’s price to compare.

Votes at a glance: The amendment adding “subject to Board of Control approval” passed on roll call (affirmatives recorded: Feibel, Silverman, Markham, Hurley, Marcelino, Lampe). The subsequent motion to approve the amended ordinance also passed on roll call (affirmatives recorded: Lampe, Hurley, Markham, Marcelino, Silverman, Feibel).