Engineering

Energy Aggregation Update:

  October 12, 2021 

Since December 2017, the City of Huber Heights has provided an electric aggregation program to eligible residents and small businesses as a competitive alternative to AES Ohio’s (formerly DP&L) Standard Offer Rate (SOR). The current aggregation rate of 4.69¢ per kWh is set to expire on your December 2021 meter read date.  

The City worked closely with their energy consultant, Energy Alliances, to evaluate options for renewing the program beyond December 2021. Due to significant increases in energy prices since this summer, Energy Alliances has recommended to Council to not lock into any prices at this time and to have all accounts on the program to go back to AES Ohio’s SOR starting with their December meter read date.   

Why did Energy Alliances make this recommendation? 

• The aggregation bids received were significantly higher than AES Ohio’s SOR for January 2021 – May 2022.  It is the financially responsible thing to do to have accounts pay AES Ohio’s rates than to lock accounts into a higher rate through an the aggregation at this time. 
• AES Ohio’s default rates are unknown beyond May 2022. We will get a sense on those rates in March 2022 after they run their next SOR auction. Since the aggregation is designed as a competitive alternative to the SOR, why would we set an aggregation price if we are uncertain of what it is being compared too? 

What do accounts on the program need to do and what should they expect? 

• Nothing must be done. The change will be automatic. 
• AEP Energy, the supplier of the aggregation program, will start sending accounts back to AES Ohio in mid-November, effective for December. That process will continue until all accounts are returns to the SOR by mid-December.  
• If you are currently on the program, you will receive a letter from AES Ohio stating that you are back on their SOR and that AEP Energy is no longer your supplier. 

Will the aggregation program return in the future? 

• Council will continue to work closely with Energy Alliances this winter to see if there is an opportunity to restart the program in Spring 2022. 
• If the program restarts in 2022, eligible residents and small businesses will get an “opt-out” letter from the supplier of the aggregation program to make them aware of the price, terms and conditions. 

Please contact Russ Bergman, City Engineer, with questions by email or by calling (937) 237-5816.