City renews electric aggregation pact

SANDUSKY — Sandusky's government recently extended its electric aggregation contract with Dynegy Energy Services East for an additional 18 months. The new term begins with the June 2026 billing cycle and runs through December 2027. The fixed rate for electric generation under the new term will be $0.0999 per kilowatt-hour. Ohio Edison's standard supply rate is projected to reach about $0.106/kWh starting in June 2026. How municipal aggregation works Municipal electric aggregation is authorized under Ohio law and allows cities to pool their residents and small businesses together to negotiate competitive electricity rates. The city does not generate electricity and does not set or control the rates. Electricity prices are set by the energy market. What the city does is act on residents' behalf to go through a competitive bidding process and select a supplier offering a better rate than the default utility price. Ohio Edison continues to deliver electricity, maintain power lines and send monthly bills. Only the electric generation supplier changes. The city contracts with Buckeye Energy Brokers, a Public Utilities Commission of Ohio-certified broker based in Akron to manage this process. Buckeye Energy Brokers ran a competitive bid and recommended Dynegy Energy Services East for this term based on the rate offered. About the rate change The previous rate of $0.0825 per kilowatt-hour.was locked in through June 2026. Energy costs have risen significantly since then due to market conditions, and rates have increased for utilities and suppliers across the country. The city has no control over this. The new rate reflects current market conditions. Even so, the program's rate is expected to remain below Ohio Edison's projected standard rate, meaning participants should still see savings on the electric generation portion of their bill compared to staying on Ohio Edison's default pricing. "We understand that rising energy costs are putting real pressure on families and small businesses," city manager John Orzech said. "The city works with Buckeye Energy Brokers, an independent broker, to run a competitive bidding process on our behalf and find the best rate available. We cannot control what the energy market does, but we try to provide Sandusky residents and small businesses the most competitive option possible." Resident options Participation in the program is voluntary. Eligible residents and small commercial customers who are not currently under contract with another supplier will be automatically enrolled for the new term. Customers do have options. They can either: • Stay enrolled in the city's program and receive the fixed rate of $0.0999 per kilowatt-hour • Compare rates from other suppliers at Energy Choice Ohio, energychoice.ohio.gov, a free resource from the Public Utilities Commission of Ohio; "If you find a better rate, you can opt out of the city's program with no penalty," according to a city statement. • Opt out and return to Ohio Edison's standard supply rate When comparing rates from other suppliers, pay close attention to whether the rate is fixed or variable, the length of the contract term, any monthly fees and any early termination fees. The city's program has a fixed rate and no monthly fees or early termination fees. Who needs to act? Customers who previously opted out of the city's aggregation program and are currently under a contract with another supplier do not need to opt out again. They will not be automatically enrolled. Only customers currently in the city's program and those not under contract with another supplier will be automatically enrolled in the new term. Opt-out notices will be mailed to eligible customers this month. To opt out, customers can call Dynegy at 1-888-682-2170 or mail back the reply form included with the notice. There are no penalties for opting out and no fees for leaving the program at any time. Visit cityofsandusky.com/electric for more information.