LOUDONVILLE — Residents of Loudonville will see more expensive energy bills as the municipal energy aggregation rates will increase from 7.65 cents kilowatts per hour to 9.52 cents kilowatts per hour.
Village Council approved entering into a two-year contract with municipal aggregation energy supplier Dynegy, which provided the rates. The village had a one-year contract with the supplier last year.
The rates will go into effect in February.
“This is due to the continued increase in demand from high-energy users like artificial intelligence (AI) companies and cryptocurrency mining,” stated an email from the village’s energy broker.
“This is coupled with a supply of electricity that has been choked off by the closure of thermal plants (coal, natural gas, etc.) without any new development of alternatives that are price effective.”
Village Administrator Garret DeWitt said other nearby towns and villages reflect similar increases.
The village’s broker from Great Lakes Energy Brokers recommended the village enter into the 18-month pact because he believed rates would be lower by the time the contract finishes. The broker also said this last year, DeWitt said.
Council approved the two-year contract with the reasoning that if rates do become lower through Ohio Edison without the energy aggregation, then residents can opt out of the program and receive the lower rates.
“Nothing seems to be going down anymore,” Council Member Cathy Lance said.
“So, that’s a benefit to this: it’s gonna save [residents] a little bit of money now, but if they can get a better rate without using this, then they can drop out at any time,” DeWitt said.
Because Loudonville’s aggregation is an opt-out program, all village residents are already enrolled to receive the new rate. If a resident chooses to opt out, there is no termination fee.
New village building
American Legion Post 257 Commander Jeff Marrota and First Vice-Commander Don Riffel donated over $132,000 toward the construction of the village building and police department.
Post 257 is funding the entire project and has thus far donated nearly $500,000. DeWitt noted the original house that sat on the lot of the new building has been completely demolished and a crew is now working to remove trees from the property.
The new village building and police station will be located at 130 North Spring St.
Other business
Council also authorized the village and Fire Chief Brad Dilgard to enter into a contract with National First Responder Grants for grant application writing services to replace an existing skid unit.
A skid unit turns a standard vehicle into a capable fire apparatus, and is typically equipped with a water tank, pump, and hose reels. Dilgard said the cost could range from $30,000-60,000 for the equipment, so a grant will help with the cost.
The company will also apply for grants to help with the purchase of a self-contained breathing apparatus — a personal protective device that provides a portable supply of oxygen — and the replacement of an existing tanker truck.
Dilgard said the company was “well-known for getting grants,” and the fire department has contracted with it previously.