ASHLAND — Electricity prices for Ashland residents are set to increase in August.
The city’s aggregation program between Ohio Edison and Dynegy Energy Services renewed for another three years on June 9. The new program — at 8.99 cents per kilowatt hour — runs through June 2028.
The new price represents an increase from the previous 6.71 cents paid, or a 34-percent increase. It, however, does not become effective until August, said Larry Paxton, the city’s finance director.
Residents who are part of the city’s electric aggregation program have the choice to opt out of the program, which was established in 2004, Paxton said.
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 in 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.
The rate increase aligns with other area hikes in electricity. Ashland County customers in six townships and two villages also face higher prices — to the tune of almost 38-percent more.
Amy Hoffman, an energy consultant with Palmer Energy Company, pointed to a low base load supply. Meanwhile, demand continues to increase.
Chad Mitchell, a consultant with Alternative Energy Source, has pointed to a continual expansion to energy-zapping data centers, a growth in popularity and use of AI, industry pivots to electric vehicle manufacturing and the rapid shuttering of coal-powered plants.
Electricity suppliers, he said, have responded by implementing rate increases.
Akron customers 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.
Letter from Ohio Edison? No action required, officials say
Ashland Mayor Matt Miller and Councilwoman Angela Woodward pointed to a letter that residents received recently from Ohio Edison.
Miller said there is “no issue” and that there is no action required on the residents’ part.
“If you were part of aggregation before and your supplier was Dynegy Energy Services, and you received this letter, don’t worry. It’s just an overlap in paperwork,” Miller said.
Residents received another letter recently and Miller said residents do not need to do anything if they are already part of the city’s aggregation program.
Councilwoman Angela Woodward said if residents have moved, however, they need to call Dynegy if they’d like to still be part of the aggregation program.