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Bellefontaine to lock a 12-month electric aggregation contract at higher short-term rate
Summary
Service Safety Director Dodd told the council the city's electric aggregation contract will roll to a 12-month term at 7.18' per kilowatt-hour starting in January; residents will receive opt-out notices and can decline enrollment with no penalty.
Bellefontaine officials said the city will roll its electric aggregation program into a new, one-year contract that raises the supply price residents may see on their January bills.
Service Safety Director Dodd told the council the city previously locked a lower four-year rate and that the current supply price of 4.99' per kilowatt-hour will end at year's close. "We've been paying 4.99' for the aggregate program. The new cost is gonna be 7.18' per kilowatt hour in the new contract," Dodd said, noting the administration recommended a short, 12-month term because market volatility makes longer locks risky.
Dodd said the 7.18' rate remains below the utility standard-choice supply, which he estimated at about 8.5 to 8.6' per kilowatt-hour. He emphasized that enrollment in the aggregation program is optional: residents already enrolled will automatically roll into the new contract but will receive an opt-out notice and may switch suppliers at any time without an early-termination fee.
"Residents always have a choice of who they get their energy supply from," Dodd said, adding that the city's broker will go back out to bid next year to seek a better price should market conditions improve.
Dodd also told the council the natural-gas aggregation contract is set to expire in October and the city will seek proposals for that supply later in the season. He invited residents with questions to contact the city or the broker for contract details.
The council did not take a formal vote on the aggregation item during the meeting; Dodd said staff will provide written notices and opt-out information to customers ahead of the contract change.
