Miami Valley Communications Council Electric Aggregation Program Price Increases

Charles WheelerCommunity News

Constellation NewEnergy (“Constellation”) has been selected as the new electric aggregation program supplier for the Miami Valley Communications Council Electric Aggregation Program, which includes the city of Trotwood and 17 other local communities. The current program with Dynegy expires at the end of December 2025, and opt-out notices detailing the new program rate, terms, and conditions are being mailed to eligible residents and small businesses. The information below summarizes frequently asked questions regarding the new program price and term.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐧𝐞𝐰 𝐩𝐫𝐨𝐠𝐫𝐚𝐦 𝐩𝐫𝐢𝐜𝐞 𝐚𝐧𝐝 𝐭𝐞𝐫𝐦?
The new price from Constellation is fixed at 9.049¢ ($0.09049) per kWh for a 12-month term starting with the January 2026 billing period. There is also a 100% renewable opt-in rate of 9.34¢ ($0.0934) per kWh for interested participants for the same 12-month term.
𝐇𝐨𝐰 𝐰𝐚𝐬 𝐂𝐨𝐧𝐬𝐭𝐞𝐥𝐥𝐚𝐭𝐢𝐨𝐧 𝐬𝐞𝐥𝐞𝐜𝐭𝐞𝐝?
An RFP was issued to various potential suppliers for all communities participating in the MVCC Program. Offers were received for different prices and terms, and based on the evaluation of results, Constellation provided the best pricing package and was selected to be the supplier.
𝐖𝐡𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐩𝐫𝐢𝐜𝐞 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐢𝐧𝐠?
There are multiple reasons for the higher prices. The previous agreement was able to secure a competitive rate for a longer term; however, wholesale electricity prices are higher than they were at the time of the last contract in 2023. The primary reason for the price increase is dramatically higher generation capacity costs, which are a portion of the supply cost.
Over the last several years, Ohio has benefited from low prices for generation capacity. As you have likely seen in the media, there is a push to build large data centers in Ohio and across the U.S., creating an increase in expected power demand. Based on supply and demand balances, the generation resources currently available, and existing resources that can reliably reduce their load on the grid, are compensated at a higher dollar amount, which flows through to end-users. The higher capacity cost also acts as an economic driver for entities to build new generation resources and/or improve the efficiency of existing resources.
𝐈𝐟 𝐈 𝐜𝐡𝐨𝐨𝐬𝐞 𝐚𝐧𝐨𝐭𝐡𝐞𝐫 𝐬𝐮𝐩𝐩𝐥𝐢𝐞𝐫 𝐨𝐫 𝐬𝐭𝐚𝐲 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐮𝐭𝐢𝐥𝐢𝐭𝐲, 𝐰𝐢𝐥𝐥 𝐭𝐡𝐢𝐬 𝐢𝐦𝐩𝐚𝐜𝐭 𝐦𝐞?
Yes – the increase in capacity costs is unavoidable and will impact consumers regardless of the selected supplier. The Standard Service Offer, often referred to as the Price-To-Compare, is the price a consumer would pay if you did not select a supplier and purchased generation directly through your current utility.
𝐖𝐡𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐨𝐧𝐥𝐲 𝐚 𝟏𝟐-𝐦𝐨𝐧𝐭𝐡 𝐭𝐞𝐫𝐦 𝐭𝐡𝐢𝐬 𝐭𝐢𝐦𝐞?
The ideal scenario is to fix prices for a longer period of time. With volatility in energy markets and the increase in capacity costs, the 12-month term provided a lower rate with less uncertainty and risk surrounding future energy prices.
𝐈𝐟 𝐈 𝐩𝐚𝐫𝐭𝐢𝐜𝐢𝐩𝐚𝐭𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐚𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐢𝐨𝐧 𝐩𝐫𝐨𝐠𝐫𝐚𝐦 𝐚𝐧𝐝 𝐝𝐞𝐜𝐢𝐝𝐞 𝐭𝐨 𝐬𝐡𝐨𝐩 𝐨𝐧 𝐦𝐲 𝐨𝐰𝐧, 𝐫𝐞𝐭𝐮𝐫𝐧 𝐭𝐨 𝐭𝐡𝐞 𝐮𝐭𝐢𝐥𝐢𝐭𝐲, 𝐨𝐫 𝐦𝐨𝐯𝐞 𝐨𝐮𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐚𝐫𝐞𝐚, 𝐰𝐢𝐥𝐥 𝐈 𝐛𝐞 𝐩𝐞𝐧𝐚𝐥𝐢𝐳𝐞𝐝?
No, there are no early termination fees associated with leaving the program for any reason at any time.
𝐖𝐡𝐚𝐭 𝐢𝐟 𝐈 𝐡𝐚𝐯𝐞 𝐨𝐭𝐡𝐞𝐫 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬?
Additional information is readily available online at www.constellation.com/oh-mvcc
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