Caucus discusses locking in lower electricity rate for city accounts; legislation planned

City staff told the Struthers City Council caucus on Dec. 30 that an opportunity exists to lock in a lower electricity supply price for 19 municipal accounts and recommended bringing legislation to council to authorize a one-year contract.

An unidentified utilities staff member explained the city expects Ohio Edison default supply to be about 10 cents per kilowatt-hour this summer and about 9 cents next winter, while the city's current municipal aggregation rate would be 7.95 cents. The staff member said they found a supplier price of 6.96 cents for March 2025 to March 2026 for the 19 city accounts and estimated that change would represent about $5,000 in savings for the city: "So instead of rolling into the aggregation at the 7.95 dollars I found a price of 6.96 dollars So that represents about $5,000 in savings," the staff member said.

Council members and staff discussed contract length. The presenter recommended a one-year contract given uncertainty about capacity rates and markets: "I wouldn't recommend a 2 year deal, but I would recommend this 1," the utilities staff member said, adding that longer-term contracts had previously been secured when capacity rates were set several years in advance.

Members asked whether residents would be automatically enrolled and about opt-out fees for customers currently under other contracts. The staff member said residents currently enrolled would remain in the program but customers under other private contracts may face fees to break those agreements.

Council agreed staff should prepare formal legislation and bring it to the Finance and Legislation committee and council for a vote. The caucus discussion did not record a formal ordinance vote during the caucus; committee review and a council vote were anticipated next week.