Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Aggregation topic
No spam. Unsubscribe anytime.
Council discusses next steps on citywide electric aggregation as capacity prices rise; special meeting planned
Summary
Council reviewed bids for the city’s retail electric aggregation as capacity prices climbed; Energy Alliance and incumbent supplier recommended a short-term contract authority for the city manager to sign when market conditions are favorable. A special council meeting was scheduled April 7 to consider action before rates expire.
Delaware City Council heard a detailed briefing on the city’s retail electric aggregation program and the results of a recent supplier solicitation, and agreed to schedule a special meeting to decide whether to renew supply contracts before the current aggregation contract expires.
City staff and Energy Alliance consultant Rich Sarace reviewed the procurement results and explained that wholesale capacity costs — the component of power pricing that pays for reserve generation — have risen sharply and are driving a steep increase in retail offers. Sarace said two vendors responded to the city’s request for proposals and that Dinegy (incumbent supplier) had submitted the lowest-priced offers for both a 100% renewable product and a standard supply product in the current solicitation.
Sarace said the principal market driver is an increase in PJM capacity prices and uncertainty about future auctions; he explained that this has pushed estimated supply costs “higher for at least the next 1–2 years,” and recommended a cautious approach. Because prices can move quickly, he recommended giving the city manager limited authority to execute a short-term (12-month) contract if Energy Alliance and staff conclude the market conditions are favorable. The city manager and staff said council cannot suspend rules tonight to take emergency action and proposed a special council meeting on Monday, April 7, to consider authorization for contract signature well ahead of the supplier deadlines.
Council members asked for additional historical context on price volatility and for examples of other similarly sized communities that chose to delay renewal; staff and Energy Alliance said they would provide those data at the follow-up meeting. The city manager also noted that the city’s aggregator certification remains current and that allowing the program to lapse temporarily would not require a new voter authorization.
No final contract was signed at Monday’s meeting; staff said they will return to council for a vote at the April 7 special meeting if recommended by the consultant and city manager.
