County presents energy participation program update; staff cite contract savings, rising capacity costs and solar offsets

Cuyahoga County staff presented an informational update on the county’s Energy Participation Program to the Public Works Procurement and Contracting Committee on July 16, an annual briefing required by county code 80604.

Matt Reimer, facilities administrator for the Department of Public Works, said the program—established by county ordinance in 2019 and extended last year—uses aggregate purchasing through the County Commissioners Association of Ohio (CCAO) Service Corporation and other agreements to buy electricity and natural gas for county accounts. The county participates in a statewide RFP that represented more than 600 million kilowatt-hours; the county’s 36 participating electric accounts total nearly 41 million kWh of annual usage.

Reimer said the CCAO procurement is estimated to save the county about $3.2 million for the covered electric accounts compared with other supply routes. One account—the Justice Center complex—entered a contract effective June 2025 that runs through May 2027; the other accounts have staggered start dates through May 2027 based on consumption groupings. For electricity, Reimer said the most recent estimate of annual electric costs was $4,855,000 (a rise from a prior $3,520,000 estimate for 2024), driven largely by capacity-market conditions.

On the natural gas side, the CCAO-executed basis contract took effect in April and runs through March 2027, setting a basis charge of $0.45 per MCF for transporting natural gas to the local area. Reimer gave budget figures produced after the contract execution: a 2024 natural-gas budget estimate of $597,148 and a 2026 projection of $662,903, reflecting a modest increase tied to basis costs.

Kirk Mazurek, who participated as the CCAO program manager (Palmer Energy), explained procurement structures and when it is advantageous to accept an "all-inclusive" price versus a capacity pass-through. "All the smaller accounts, it's more advantageous to just take an all inclusive approach to the capacity," Mazurek said. "But the larger accounts ... it made a lot more sense to do capacity pass through deals." He added that capacity is a real cost that the county will ultimately pay, and a pass-through approach prevents suppliers from capturing a differential if capacity prices move.

Committee members asked about Cleveland Public Power (CPP) accounts and whether the county verifies CPP billing. Mike Foley and Matt Reimer described a 2018-era services agreement with CPP that included a roughly 10% distribution discount for some county buildings tied to the Brooklyn solar project and other negotiated terms; county staff said they review monthly bills to confirm charges. The county also has solar power purchase agreements on several county properties, including the Harvard Road garage, the county animal shelter and other facilities. Reimer estimated that the four solar projects combined were projected to save roughly $1.5 million to $1.8 million over the life of the agreements and that the solar generation reduces the county’s need to buy power from the grid during high-cost capacity periods.

Committee members asked about Project Icebreaker, the offshore wind demonstration in Lake Erie. Reimer and Foley summarized the project's difficult history—high construction costs, regulatory and environmental reviews, and prior legal and regulatory controversy—but said a new company has expressed interest and that assets such as submerged-land leases and prior studies could facilitate a revived effort.

Reimer concluded by saying the county will present again if the energy committee makes significant hedge-quantity purchases for natural gas; otherwise staff do not anticipate further contract presentations for about two years.