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Energy consultant asks South Lebanon to give administrator authority to sign electric supply up to 10.499¢/kWh
Summary
An Energy Alliances representative told South Lebanon City Council that capacity charges are driving volatile electricity prices and asked the council to authorize the city administrator to sign a supplier agreement capped at 10.499¢ per kilowatt-hour if market conditions allow.
Daniel Dieters of Energy Alliances told the South Lebanon City Council the city—————————electric aggregation program is facing price volatility driven primarily by capacity charges and that the firm would only recommend a deal if it could reasonably ensure savings for residents.
"At this point, we're asking you to, give the administrator authority at a 10.499 rate or less," Dieters said, explaining the current program rate (reported in the presentation packet) and the difference between energy and capacity components. He said the current rate was about 9.09¢ per kilowatt-hour and that capacity currently represents roughly 3.0—————to——3.25¢ of that total on a typical bill.
Dieter described capacity as the portion of the bill that pays to ensure future generation is available across the Duke service footprint and said recent market moves—rather than existing local data-center demand—are what drive the capacity component upward. He emphasized the firm will not recommend renewing or signing a supplier contract unless it is convinced the agreement will save money for residents.
Council members asked practical questions about enrollment and the gas aggregation program. Dieters said residents already in a gas program would be automatically included and that new residents who move into the city can be enrolled quickly by calling the city office; he warned residents to check for termination fees before cancelling private supplier contracts. He also clarified that delivery and distribution charges are regulated by the Public Utilities Commission of Ohio and are not affected by the city's aggregation decisions.
The presentation did not produce an immediate vote on a supply agreement; Dieters asked only for authority to allow the administrator to negotiate and sign a deal at or below the 10.499¢/kWh cap if a suitable offer emerges.
