Group representing local cities approves electric rate deal that’s 39% cheaper

Credit: Greg Lynch

Credit: Greg Lynch

A Dayton-area energy aggregation coalition that is expected to include 15 cities by next year has approved its electricity provider for residents and small businesses.

Energy Harbor of Akron was selected Thursday by the Miami Valley Communications Council group for a 28-month contract of 6.57 cents per kilowatt-hour (kWh) starting Sept. 1, Executive Director Jay Weiskircher said.

The AES Ohio standard service offer as of June 1 is 10.807 cents per kWh, meaning customers in the MVCC deal would save 39.2% per kilowatt-hour compared to that price.

The MVCC group currently includes Centerville, Clayton, Englewood, Fairborn, Germantown, Kettering, Miamisburg, Moraine, Trotwood, Vandalia and West Carrollton. Later this year the coalition is expected to add Brookville, Eaton and Union, with Troy joining in 2024, records show.

The coalition voted 11-0 for Energy Harbor over Dynegy of Northwest Ohio, Weiskircher said. The rates for both proposals were similar, he added.

“They were almost the exact same rate, down to one 100th of a cent,” he said. “That just shows you that we got two very competitive prices.”

Under this rate, the average residential customer would save about $360 in the first year, with small businesses saving about $984, according a document from Palmer Energy, the group’s consultant.

Those estimates are based on an average monthly usage of 705 kilowatt-hours for residents and 1,942 for small businesses, Palmer records show.

The MVCC group had an option for a three-year agreement, Weiskircher said. But “the rates for the 36-month proposal were a little bit higher and we didn’t feel that additional cost justified continuing the contract.”

The proposals included more than 80,000 electric meters consuming about 800 million kWh in the AES Ohio electric distribution territory, according Palmer data.

In the past few years, dozens of local cities and townships have created energy aggregation programs, pooling the buying power of their residents and businesses in an effort to negotiate lower energy prices for them.

The billing period for the current 11 members will start in September, according to Palmer. For Brookville, Eaton and Union, the billing will start in October, while the start for Troy will be May 2024, Palmer records show.

There are no early termination fees for participants who choose to leave the program, according to the consultant.

The MVCC group requested proposals earlier this spring and received two by its June 12 deadline, according to Weiskircher. Letters will be sent out in the participating communities in the coming weeks, and customers will have the choice to opt out of the program.

Proposals for a natural gas provider for the MVCC group are expected to be sought later this summer, Weiskircher has said.

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