City warns residents: electric aggregation rates likely to rise as data centers strain capacity

Finance Director (Mister Duke) informed the council that the city’s gas aggregation plan is set to expire in November and staff do not plan to renew it because residents have received little benefit. The electric-aggregation plan is up for renewal in December and, based on recent quotes, staff expect rates to increase from roughly $0.063 per kilowatt-hour to about $0.093 per kilowatt-hour. Duke attributed much of the increase to a steep rise in capacity costs (which he said previously were about $29 and are now in the $260–$270 range) and to rising regional demand from large users such as data centers.

Council members asked whether new customers or those already under private contracts would be auto-enrolled. Duke said residents will receive opt-out letters and that, unless households are already under an individual contract with another supplier, they will be enrolled automatically; the electric plan would take effect with the January billing cycle. He said the city’s program covers only customers in the incorporated city limits (Xenia proper) and that commercial customers may participate only if their usage falls below program limits. Duke also noted that when staff solicited supplier quotes, they received only one offer this week and that energy markets are volatile, so the final locked rate could vary day to day.

Law Director Danette added that a recent court-digest item involving AES and the Public Utilities Commission of Ohio (PUCO) concerns billing structures; the matter is being appealed to the Ohio Supreme Court. Council members discussed the broader policy context and the fact that decisions about large energy users and regulation are largely state-level matters.

City staff said they will communicate details to residents, including opt-out letters and comparisons through Ohio Energy Choice resources.