ASHLAND — The cost to keep the lights on in Ashland County-owned facilities will increase by 50% in June, according to price offers received through the county’s energy consultant.
Ashland County’s contract with its electric service supplier, Engie, expires in May. So the county’s energy consultant — Palmer Energy Company — sought prices from six suppliers.
Quotes came back with prices around 50% higher than the previous term, said Amy Hoffman, a program manager at Palmer Energy Company.
Dynegy happened to have the lowest quote, estimating the county’s annual generation costs for electricity at its several buildings would come to $161,000, or $483,000 over a 36-month contract.
Companies also provided quotes for a 12-month and 24-month term, but Hoffman recommended the county agree to three years because the rates are cheaper when lumped together.
County commissioners expected the rate hikes prior to Thursday’s discussion with Hoffman, who approached them last summer with the warning that rates will be higher going into 2023 and beyond.
“It’s been the most volatile, craziest energy market in quite some time,” Hoffman said.
The rate hikes were seen in 2022 when Ohio’s energy companies increased rates to account for the up-and-down market, resulting in anywhere from an average of $12 to $61 more spent per month on electricity.
An increase in demand as markets rebounded following the COVID-19 pandemic drove prices upward. Supply chain issues, exporting fuel overseas and the war in Ukraine also contributed, Hoffman said.
Jim Justice said he hopes the county’s energy bills will not be so bad now that the county does not own the service center building, which sold to the Ashland County-West Holmes Career Center in July for $500,000.
The county also offers electric optional aggregation services to residences and small businesses in Green, Milton, Mohican, Perry, Vermillion, Hayesville and Jeromesville.
The aggregation contract expires in December, so Hoffman said she’ll be back to commissioners later this year to discuss prices.
