Next power aggregation contract will bump rates up

CELINA - Residents and small businesses enrolled in the Mercer County Electric Aggregation Program will see their electricity rate increase a little over 2 cents to 11.52 cents per kilowatt-hour under a new contract.

Under the current contract, which expires in December, those enrolled in the county electric aggregation are paying 9.45 cents per kilowatt-hour from supplier Dynegy Energy. The new contract, also with Dynegy, takes effect Jan. 1, 2027, and runs through the June 2029 billing period.

In a time when electricity prices remain unpredictable, continuing the aggregation program offers protection from market volatility, budget stability, contract flexibility, a green pricing option and buying power, according to a Mercer County Commissioners news release.

During a Sept. 28 meeting, commissioners from Mercer, Auglaize, Darke, Clinton, Greene, Logan, Miami and Preble counties agreed to proceed with an electric aggregation grouping and contract, the Mercer County Commissioners meeting minutes state.

"Your community partnered with other local communities to negotiate on behalf of all eligible residents and small businesses in the areas included. A competitive bidding process was used where offers were received from various suppliers to secure the best price and contracting opportunity possible at this time," the release states.

The Mercer County Electric Aggregation Program is open to the villages of Rockford and St. Henry and the unincorporated areas of Black Creek, Butler, Center, Dublin, Franklin, Gibson, Granville, Hopewell, Jefferson, Liberty, Marion, Recovery, Union and Washington townships.

The program does not apply to electric customers served by Midwest Electric or Celina Utilities.

Eligible participants will begin to receive opt-out notices from Dynegy in the mail over the coming weeks, according to the release. The opt-out letters will provide new program details, including budget billing information, and no action is needed to participate.

"You will continue to receive one invoice from your utility each month, with the new rate reflected approximately 45-60 days after receiving the opt-out letter. As always, there is no change or interruption to your electric service. All outages and emergencies should continue to be reported to your local utility and emergency services," the release states. "Those looking to opt out of the program will find details on how to do so by mail, phone, or website in the opt-out notice they receive."

County voters in November 2023 narrowly passed an electric aggregation issue authorizing commissioners to purchase electric loads at a fixed rate for up to three years on behalf of eligible residents and small businesses in unincorporated areas of the county, meaning the townships.

Local government aggregators with group-buying power can often secure better electric generation rates for residents, according to Amy Hoffman of Palmer Energy.

Households in the contiguous United States will pay thousands of dollars more for energy through 2040 because of federal policy changes since President Donald Trump returned to office such as canceling new clean energy projects, according to modeling released earlier this month by a nonpartisan think tank.

The Energy Innovation analysis found that households will pay an average of $6,500 more for energy, cumulatively through 2040.

The California-based think tank, which describes itself as nonpartisan but has a mission of mitigating climate change, said there will be more demand for natural gas for electricity because the administration is canceling new wind, solar and hydrogen projects and there will be more gasoline demand for transportation because Trump and Congress are revoking policies that incentivized efficient and lower-emissions vehicles. Higher demand increases prices.

The Energy Information Administration expects residential U.S. customers to pay about 18.6 cents per kilowatt-hour in 2027, compared to 17.3 cents in 2025 and 18.2 cents in 2026.

The independent research firm Rhodium Group has also examined the issue, saying in April the U.S. has entered a new period of rising electricity prices. It cited increasing price volatility in natural gas, which is increasingly used to generate power; needed grid improvements; inflation; storm recovery and wildfire mitigation; and shifting policies.

- The Associated Press contributed to this article.