Sandusky approves 24-month Dinergy contract for city accounts; residents told they may opt out

The Sandusky City Commission on March 9 approved an ordinance authorizing the city manager to sign a 24-month electric-service agreement with Dinergy Energy Services East LLC for the city’s municipal accounts and separately approved a second amendment to the master residential aggregation agreement with Dinergy.

City Manager Orszag explained the difference in contract lengths after a resident questioned why municipal accounts were offered 24 months while residential and small-commercial accounts were offered 18 months. "We picked the 24 month because it was the cheapest and, best out of all of the bids that came in for, item number 4," Orszag said, adding that staff and the city's broker collected bids for 12-, 18- and 24-month terms and selected the lowest-cost option for each grouping.

Resident Tim Schwanger, who spoke during the public hearing, said the arrangement looked inverted to some in the community: "The city government accounts are for 24 months and my mind is only for 18 months," he said, asking why municipal block purchases did not yield a better rate for residents. Orszag responded that the bids are what they are when they come in and that residents retain the right to opt out of the aggregation program if they find a better price.

Commissioners moved to adopt the city-account ordinance under suspension of rules and approved the residential amendment in the same meeting. Staff noted the broker is required to make public filings and manage the opt-out process; the city can lock in the recommended agreement once the bids close.

The vote was taken during the regular agenda; both ordinances were approved to take immediate effect in accordance with Section 14 of the city charter.