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Sunbury committee hears recommendation to renew electric aggregation with 12‑month cap
Summary
Syla Energy representatives told the Services Committee that rising PJM capacity costs mean supplier offers have increased for the city’s electric aggregation program; the consultant recommended a 12‑month contract and a council resolution with a price cap so staff can lock in a supplier if the final offer stays below the threshold.
The Sunbury City Services Committee on Feb. 5 heard a presentation from Syla Energy representatives on options for renewing the city’s electric aggregation program, and staff recommended a one‑year contract with a price cap to allow staff to lock in a new supplier if the final price is acceptable.
Syla Energy representative Greg told the committee that the city’s current fixed supply rate of 6.48¢ per kilowatt‑hour (kWh) expires in May. He said supplier offers from a recent request for proposals included a 12‑month offer at 8.5¢/kWh, a 24‑month offer at about 9.3¢/kWh and a 36‑month offer at about 9.9¢/kWh. "The bad news is we do have a significant jump from where we have been," Greg said, adding that higher capacity charges set through PJM’s auction process are the main driver of the increase.
Greg said capacity auction clearing prices rose sharply in the most recent auction, from a historical level around 2.8 mills/kWh to roughly 2.8¢/kWh (a roughly tenfold increase), and that this component affects both utility and third‑party supplier offers. He told the committee that, despite the increase, a 12‑month fixed contract would still likely provide a discount to what the utility (AEP) is projecting and recommended a 12‑month term to avoid paying a multi‑year premium if capacity prices moderate.
The presentation noted the aggregation program saved residents in the prior term: Syla Energy reported about $435 in cumulative savings per household using an 800 kWh per month average for the earlier two‑year term. Committee members asked how the city would communicate with residents and whether residents could go back to the utility; Syla Energy said customers remain able to return to the utility at any time and that the supplier cannot impose early‑termination fees on customers who choose to opt out.
Committee members and staff discussed next steps: Syla Energy asked the committee to authorize staff to proceed to the Feb. 19 City Council meeting with a resolution authorizing a contract "not to exceed" a specified price; Syla Energy would obtain a final, refreshed price the morning staff seeks authorization. Greg said his recommendation was to proceed only if the final price did not exceed 9¢/kWh. Committee members expressed comfort with a 12‑month structure and asked that city communications make clear the program uses the city’s branding so residents recognize legitimate opt‑out notices.
No formal vote to bind the city to a supplier occurred at the committee meeting. The committee expects the item to go to Council on Feb. 19 for a resolution authorizing staff to accept a supplier offer if the final price falls at or below the council’s approved cap.
Ending: The committee did not take formal action at the meeting; staff will bring a resolution to City Council on Feb. 19 and, if authorized, will accept a final supplier offer the morning after the pricing refresh if it does not exceed the city’s price cap.
