VILLAGE UTILITY AGGREGATION PROGRAMS UPDATE: MARCH 28, 2017
As you are aware, the Village of Fort Recovery is involved in utility aggregation programs for both the electric and natural gas supply services. These programs took effect after approved at the May 6, 2013 election by the voters in Fort Recovery. Since that time, we have had contracts on both utilities that have or are about to expire.
The natural gas contract has expired and based on the current market rates it has been more cost effective to remain on Dominion’s standard rate of $2.577 per MCF than enter a fixed rate contract at a higher cost. The current fixed rates are in the mid to upper $3 range and we did not want to lock everyone in on a price that was higher than offered through the standard rate. While the standard rate is a variable rate it has been much lower every month since our original gas contract expired back late 2016. We continue to monitor the rates through our broker and will reenter the market when it looks to be advantageous for securing a fixed rate contract. What has happened to all those involved in the aggregation program is that you should have been automatically switched to the Dominion standard from our previous rate of $4.79 per MCF with Volunteer Energy. If you have not signed up with anyone else since the contract expired, you will automatically be switched to any new contract that we may enter into in the coming months.
The electric contract is set to expire in November, 2017 and is currently with AEP Energy at a rate of $.0599 / KWh. We recently signed an extended contract with Dynegy Energy Services that will start upon the expiration of the current contract. The new contract will run from November, 2017 until April, 2020 and will be at a rate of $.0529 / KWh. Anyone currently in the aggregation contract with AEP Energy will automatically be switched over to Dynegy in November and nothing should be required of you to make this change. This term will coincide with 20 different communities in Ohio that will all be bidding their aggregation programs together in April, 2020 to provide a larger pool of accounts and consumption that will hopefully offer the ability to receive an even better rate for our individual aggregation programs.
As always, should you have any questions or concerns about these aggregation programs please do not hesitate to call the village hall at 419-375-2530.