The Mount Vernon City Council approved an agreement on September 29 to secure electricity rates in conjunction with Fredericktown, aiming to achieve optimal pricing by presenting a larger customer base to the supplier.
"I understand that the price of electricity per kilowatt will increase once our previous contract expires, and that the new rate has not yet been determined," said Mount Vernon resident Jennifer Shoman during public comment, as recorded in a video of the meeting. "What I would like to ask is whether the City Council has a clear projection of the costs associated with the development and administration of this plan."
According to Safety-Service Director Tanner Salyer, adder fees included in the agreement originate from a standard document created by the Public Utilities Commission of Ohio. By omitting any company name from the agreement, it allows for flexibility in selecting a company through the bid process. Salyer said that the city does not anticipate changing suppliers from Dynegy, which acquired Energy Harbor in 2024.
Salyer further explained that voter demand for aggregation, expressed on a 2011 ballot, drives city officials to negotiate aggregation contracts aimed at maintaining low costs for residents and businesses. He noted that market factors would lead to increased costs.
Salyer also cautioned residents against solicitations from aggregators other than those chosen by the city. A state law amendment permits companies to offer lower initial rates before significantly increasing them and imposing termination fees, potentially negating any anticipated savings. He assured that the city selected a reputable public aggregator.
Looking ahead, Salyer indicated that work on the next natural gas aggregation agreement will commence in spring, with requests for proposals issued at that time.
