That compares to the 6.19 cents per kilowatt of electricity they are paying under the current contract, which expires at the end of May, said Adam Sackenheim, assistant city manager.
“It’s a significant increase. It’s not unique to Fairfield and it’s not unique to aggregation programs,” Sackenheim said.
“It’s the energy market’s volatility. All electric pricing is trending up.”
Fairfield’s consultant Rich Surace, with Energy Alliances, said in his 20 years in the business he’s never seen such volatility in the market, particularly this year.
“This market has significantly risen over the last two weeks,’’ Surace explained.
He likened it to gas prices, which routinely rise or fall — sometimes from day-to-day.
He noted the significant increase from last month when rates quoted to Fairfield from Dynegy and Constellation ranged from 8.71 and 8.74 cents per kilowatt of electricity.
Nevertheless, Fairfield residents who stay with Dynegy in the aggregation program are still expected to save over Duke’s rate, Surace said.
In the first of two auctions, Duke’s whole sale rate this week came in at 9.317 cents per kilowatt. That will cover half the energy Duke will need.
Surace said the retail rate would end up about 10 cents per kilowatt hour for consumers. The second auction for the other half of electricity is set for April 15.
Those who participated in the city’s electric aggregation program saved on average $151 over an eight-month period that began in April 2024 over Duke Energy’s rate.
All eligible residents and businesses will start receiving letters next week explaining the new rate and how to opt out of the city’s electric aggregation program, approved by voters in the November 2023 election.
Those who don’t opt out will automatically be enrolled at the new rates, Sackenheim said. Residents can opt out at any time at no cost.
Under the program, Duke Energy would still do the billing and customers would call them if power went out or if there were other issues.
About 75 percent of residential accounts in the city are eligible to participate, Surace said.
There are between 13,000 and 14,000 eligible residential and business accounts in the city, Sackenheim said.
MORE DETAILS
Residents with questions should call 513-794-5555 or go online to fairfield-city.org/1096/Energy-Aggregation.
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