Norwood City Council prepares for potential electric aggregation rate adjustments

The Norwood City Council held a regular meeting on March 11, 2025, where key discussions centered on the city's electric aggregation program and the anticipated increase in electricity rates. The council is preparing to authorize its electric aggregator to seek favorable market rates for residents, allowing them to opt out if they choose not to participate in the program.

Council members expressed concerns about the current electricity rates, which are projected to rise from 0.067 to approximately 0.09 per kilowatt hour. This increase reflects a broader trend affecting many areas, with council members questioning whether better rates could be secured or if they are limited to existing providers like Duke Energy.

Mr. Powers, a council member, noted that while the rates are not favorable at present, the city aims to be ready to act when market conditions improve. He emphasized the importance of relying on expert firms like Energy Alliance to navigate the complexities of energy pricing and to find competitive rates when available.

The discussion also highlighted the confusion residents may experience regarding their bills, particularly concerning the aggregation program. Council members reassured the public that participation in the program typically results in savings compared to market rates, with an average savings of about $330 over the past year and a half.

Mr. Bonsall, another council member, urged caution in signing new contracts, suggesting that the city might consider remaining with Duke Energy temporarily if aggregation rates are not favorable. He pointed out that the rising costs are partly due to increased demand from data centers and other economic developments, which could lead to higher capacity charges for all customers.

The council's decision to authorize the aggregator will allow them to act quickly when favorable rates become available, ensuring that residents can benefit from potential savings despite the anticipated rate increases. The meeting concluded with a consensus on the need for careful consideration of future energy contracts to protect residents' interests.