Effort to save residents on gas rates in 15 area cities delayed by lack of proposals

MVCC-led effort on electricity led to 39% lower price; natural gas suppliers cited market volatility in not submitting bids

Credit: AP

Credit: AP

The start of a natural gas aggregation program by a group that may include more than a dozen suburban Dayton cities is delayed until next year due to a lack of interested energy suppliers.

Only one supplier submitted a proposal to the Miami Valley Communications Council group seeking competitive natural gas rates for residents and small businesses, Executive Director Jay Weiskircher said.

Cities interested in joining the program so far are Brookville, Centerville, Eaton, Englewood, Fairborn, Germantown, Huber Heights, Kettering, Miamisburg, Trotwood, Troy, Union, Troy, Vandalia and West Carrollton, he said.

The MVCC requested proposals from energy businesses in July, but “we were told right now there’s some volatility in the market,” he told MVCC board members last week.

“There were a number of … suppliers who told us that due to current market conditions, that’s why they did not respond,” Weiskircher told the Dayton Daily News. “And they suggested that we go back out for quotes later this year in the November/December timeframe.”

Should the group receive competitive rate proposals next time, a program could be in place by May or June, he added.

CenterPoint’s standard choice offer rate effective Sept. 1 was rate is 3.73 cents per ccf, or 100 cubic feet, according to Energy Choice Ohio. Its rate ending Aug. 31 was 3.66 cents.

The MVCC recently started an electric aggregation program that included many of same cities. That group in June signed a 28-month contract with Akron-based electric supplier Energy Harbor, which is charging 6.57 cents per kilowatt-hour (kWh).

The AES Ohio standard service offer for electric as of June 1 was 10.807 cents per kWh, meaning the MVCC price is a 39% savings.

Consultant Palmer Energy said the MVCC electric program is projected to save residential customers $350 a year and small businesses about $984 annually. Because the program started Sept. 1, it’s too early to gauge if Palmer’s projected cost savings are accurate, Weiskircher said.

Palmer is also the group’s consultant on natural gas, Weiskircher said. The Toledo-based business recently met with the group of communities interested in natural gas aggregation and suggested seeking more proposals later in the year, he added.

“I don’t think it’s a big concern that it’s delayed a little bit,” said MVCC board Chairman Rob Stephens, an Oakwood city councilman.

“We’ll see how the electric goes and make sure that that program gets up and running and everybody’s moving right along. And then we can get into natural gas after that,” Stephens added.

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