Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Aggregation topic
No spam. Unsubscribe anytime.
Council authorizes mayor to sign 12-month electric aggregation contract; officials cite rising capacity costs
Summary
Council authorized the mayor to sign an agreement with Energy Alliances to restart an electric aggregation for residential customers with a 12-month supplier contract, capped at 10 cents per kilowatt-hour; Energy Alliances said rising capacity charges are pushing default utility prices higher.
The North Bend Village Council on Feb. 24 authorized Mayor Salmons to sign an agreement with Energy Alliances to seek an electricity supplier for a village aggregation program that would begin in June 2025.
Dan Dieters, identified in the meeting as an aggregation specialist for Energy Alliances, told council members the previous aggregation that started in June 2023 produced average savings for participating residents. "The average resident has saved about $380 over that period of time with the program," Dieters said, comparing supplier offers to Duke Energy’s price-to-compare.
Dieters said wholesale “capacity” charges — the portion of the utility bill that ensures generation is available to meet peak demand — are rising and driving higher utility default rates. He told the council that the capacity component for the upcoming June 2025–2026 period could jump from about 0.9¢ to roughly 3.5¢, pushing Duke’s price-to-compare toward or above 10.5¢ in some supplier estimates.
To give staff flexibility in a volatile market, the council gave the mayor authority to sign a supplier agreement for a 12‑month term, with a council-directed cap of no more than 10¢ per kilowatt-hour. Dieters said Energy Alliances will solicit certified Ohio suppliers under PUCO rules and will bring refreshed supplier pricing to the village; because markets move quickly, staff asked for authority to execute a short-term contract between council meetings.
Why it matters: Aggregation can produce savings for residents compared with the default utility price, but both council members and the consultant emphasized that recent and near-term increases in capacity charges have reduced the size of the potential savings and raised volatility.
Council action: A motion to authorize the mayor to sign an agreement with Energy Alliances for electrical aggregation with a maximum rate of 10¢ per kilowatt-hour passed by voice vote.
What council asked for next: The village will receive updated supplier pricing from Energy Alliances; staff said they will return to council with the final supplier recommendation and executed contract. The firm recommended an initial 12‑month term so the village can re‑evaluate and possibly extend or re‑blend pricing later.
Direct quotes from the consultant - "The average resident has saved about $380 over that period of time with the program," — Dan Dieters, Energy Alliances. - "We are going to only ask for a 12 month term, which is the bare minimum in Ohio aggregations," — Dan Dieters.
