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Green warns residents of likely jump in electricity prices; council to consider DynaG aggregation contract
Summary
City staff told the Intergovernmental & Utilities Committee that renewing the city's electricity aggregation contract (02/2005) with DynaG is time‑sensitive: staff must strike a price by March 11. The city’s current aggregated rate (about 4.91¢/kWh) could rise toward 10¢/kWh after a PJM capacity‑auction reset, potentially increasing a typical household bill from about $37 to $75 per month on the usage component.
City administrators warned the Intergovernmental & Utilities Committee on Feb. 25 that residential electricity costs are likely to rise after PJM’s capacity‑auction reset and that the city must act quickly to preserve aggregation protections.
The ordinance under consideration (02/2005) would authorize the city to continue a governmental electricity aggregation program with DynaG Energy Services (formerly Energy Harbor) and to use DynaG as broker/contractor to strike supply pricing for an opt‑out aggregation. Staff stressed the urgency: to be in a favorable procurement window the city needs to have a contract in place to "strike" by March 11.
Staff cited the city’s current aggregated price of roughly 4.91¢ per kilowatt‑hour and estimated the market could climb to about 10¢/kWh. "So our people that are right now paying $4.91 could go to 10¢," a director told the committee, and staff provided a household example showing an increase from about $37 to $75 a month on the usage portion if rates reach 10¢/kWh for an average 750‑kWh household.
Officials said the aggregation program is voluntary (residents may opt out) and that DynaG will shop among suppliers; staff recommended a short fixed‑term contract (likely one year) to reduce immediate exposure and then reevaluate. The administration plans a public presentation and outreach on March 11 to explain options and notify residents once pricing is set.
What’s next: The committee will ask for time at the regular meeting for second reading; staff will present final pricing after the March 11 procurement window and publish information on the city website and through communications channels.
Speakers quoted: Director Waxcar (administration).
