ASHLAND — Around 3,000 county residents should expect to see a spike in electricity bills in the coming months.
A contract Ashland County commissioners signed with Dynegy Energy Services on Thursday locked in a price of 8.96 cents per kilowatt hour through May 2027, an increase of 36.7 percent from the previous deal.
The agreement is part of a government opt-out aggregation program with the following communities within the county:
- Green Township
- Jackson Township
- Milton Township
- Mohican Township
- Perry Township
- Vermillion Township
- Village of Hayesville
- Village of Jeromesville
Jackson Township will be the first community to experience the higher cost of electricity. The township’s current aggregation deal expires in June.
The township has been part of the county’s aggregate program since 2010, when it was originally established.
But Jackson Township left and has recently decided to return to the program, according to Amy Hoffman, an energy consultant with Palmer Energy Company. She represents the county through the County Commissioners Association of Ohio.
The rest of the communities listed above, however, will see the new price starting in December, according to the contract signed Thursday. The price will continue through May 2027.
Customers in those communities will automatically be included in the aggregate price. But customers can opt out if they choose.
“Anyone that’s on it currently will receive the opt-out letter in the mail,” said Amy Hoffman, an energy consultant with Palmer Energy Company, the firm Ashland County uses to secure aggregate program rates.
“If they can do better, it’s always an option.”
Customers can compare rates from electric suppliers by visiting Energy Choice Ohio’s “Apples to Apples” website.
What is aggregation?
Essentially, it’s a group that buys electricity or natural gas for its members. There are several governmental entities, including Ashland County, that participate in an aggregation program.
Governmental aggregations can either be “opt-in” or “opt-out” programs. Ashland County has participated in an opt-out aggregate program since 2010, meaning customers are automatically enrolled, unless they individually opt-out of the program and choose not to be included.
Learn more here.
There are several reasons for higher electricity prices, Palmer said. Simply put, she said, the demand is high and supply is low.
“The base load supply is just not there right now,” she said.
Meanwhile, data centers are opening, vehicle manufacturers are switching to all-electric and coal-powered plants are shuttering at a rapid pace.
The response, from electricity suppliers, is to jack up prices until the grid catches up, Palmer said.
The price increase in Ashland County is in line with other communities.
Akron customers, for example, are set to experience up to $40 more on their bills. Other comparable prices include 8.60 cents per kWh in Tallmadge, 9.69 cents in Green and 7.99 cents in Youngstown.