Constellation NewEnergy has been selected as the new electric aggregation program supplier for the Miami Valley Communications Council (MVCC) Electric Aggregation Program, which includes the City of Troy 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, from our partners at MVCC, 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.
For more information about Troy's aggregation programs, visit www.troyohio.gov/aggregation.