New electric aggregation contract set for 2027-2029

Electricity prices may be unpredictable, but residents and small businesses in Troy know exactly what they’ll pay for their electricity supply for the next three years.

The Miami Valley Technology and Communications Group (MVTCG) has entered into a three-year agreement with Dynegy to provide a fixed electricity supply rate of 11.53 cents per kilowatt-hour ($0.1153/kWh) from January 2027 through December 2029. Troy is part of MVTCG and has joined 19 other communities for more bargaining power through the MVTCG agreement.

The agreement comes as electricity prices continue to rise across Ohio and gives participating customers a predictable supply rate through the end of 2029, regardless of wholesale market fluctuations.

“We have a responsibility to look beyond what’s happening with electricity prices today and think about what’s best for our residents and businesses over the long term,” MVTCG Deputy Director of Government Relations Jay Weiskircher said. “That’s exactly what this partnership allows us to do.”

The new rate is higher than the expiring aggregation rate of 9.049 cents per kilowatt-hour ($0.09049/kWh) and will initially be slightly higher than AES Ohio’s current standard supply rate. However, AES Ohio’s rate is expected to increase beginning in June 2027, based on recent electricity supply auctions. Additional rate changes are anticipated in 2028 and 2029, while the MVTCG aggregation rate will remain fixed.

“The electricity market has changed significantly over the past several years. We’ve seen substantial increases in wholesale electricity prices,” Executive Vice President of Palmer Energy Kirk Mizerek said. “Securing a three-year agreement helps protect participants from uncertainty while giving them the flexibility to explore other options if market conditions improve.”

Palmer Energy Company recommended the agreement following a competitive bidding process in which three suppliers submitted pricing proposals. The group considered several factors, including rising wholesale electricity prices, higher costs to maintain adequate electricity generation and the benefits of securing a longer-term agreement.

“Residents are feeling the impact of rising costs in nearly every part of their lives, and electricity is no exception,” Kettering City Manager Matt Greeson said. “Programs like this are one way local governments can work together to give people a little more control over their household and business expenses. It is a practical example of regional collaboration making a difference for the people we serve.”

Eligible residents and small businesses will receive a notification letter from Dynegy in the coming weeks explaining the new agreement and how to opt out if they do not wish to participate.

Benefits of the aggregation

The electric aggregation program allows communities to purchase electricity collectively on behalf of eligible residents and small businesses. The program offers:

• A fixed rate for three years: The electricity supply rate will remain at 11.53 cents per kilowatt-hour ($0.1153/kWh) through December 2029.
• No cancellation penalties: Participants may leave the program at any time without an early termination fee.
• A renewable energy option: Customers interested in electricity backed by 100% renewable energy may choose an alternative rate of 11.73 cents per kilowatt-hour ($0.1153/kWh).
• No change in electric delivery: Local utilities, including AES Ohio, will continue to deliver electricity, maintain power lines and respond to outages.

Why lock in a rate that’s higher than today’s price?

While the new aggregation rate will initially be slightly higher than AES Ohio’s standard rate, several factors make a longer-term agreement beneficial:

• Higher rates are expected. Recent electricity auctions indicate AES Ohio’s standard rate is likely to increase beginning in June 2027, with more rate changes expected in 2028 and 2029.
• Today’s prices won’t last forever. Wholesale electricity prices have risen significantly over the past year, driven in part by growing demand and higher costs to maintain enough generation to meet it.
• Three years of predictability. While utility rates can change, aggregation participants will know their electricity supply rate through December 2029, making household and business budgeting easier.
• There’s no penalty for leaving. If electricity prices drop or customers find a better offer, they can leave the aggregation program at any time without paying an early termination fee.

What are Troy's options for electric supply?

• Troy residents who do not opt out of the aggregation are automatically enrolled at the beginning of a new aggregation period. You will receive a notice by mail before the start of the aggregation period with information on how to opt out. Users can opt out by following the instructions in the notice or by calling 1-833-241-4599.
• You may opt into or out of the aggregation at any time. 
• Residents who opt out of the electric aggregation will automatically receive AES Ohio's standard rate. 
• Residents may choose from other offers available from third-party suppliers. To view offers from other suppliers, visit www.energychoice.ohio.gov.