Lima electric aggregation program reports $2.4M savings as energy rates set to rise

In a recent Lima City Council meeting, significant discussions unfolded regarding the city's electric aggregation program, led by Erin Schmerschneider from Trey Bell Energy. The program, which has been operational since September 2023, has yielded impressive savings for participants, totaling over $2.4 million, or approximately $500 per participant. With nearly 65% of eligible residents enrolled, the program continues to provide a no-fee option for those seeking to reduce their electricity costs.

However, the meeting also highlighted challenges ahead as energy market conditions shift. Schmerschneider warned of an impending increase in electric rates, projected to rise by 20% starting June 1, due to a mismatch between supply and demand in the energy market. This situation is exacerbated by the growing energy needs of large companies, particularly in light of new manufacturing plants and data centers, which are expected to significantly increase electricity consumption in the region.

The council discussed the implications of these changes, particularly the rising costs associated with capacity, which is the second-largest component of electric pricing. The recent auction results indicated a staggering ninefold increase in capacity costs, raising concerns about affordability for residents and businesses alike.

In response to these challenges, Schmerschneider proposed a longer-term strategy for the aggregation program, suggesting a three to five-year term to stabilize costs and mitigate future price fluctuations. The council was tasked with deciding whether to grant Trey Bell Energy the authority to negotiate on their behalf, a move aimed at capitalizing on favorable market conditions as they arise.

Additionally, the meeting featured a presentation from the Lima Allen County Regional Planning Commission, which introduced an interactive dashboard for the Transportation Improvement Program. This tool aims to engage the public in understanding and participating in local transportation projects slated for the next several years.

As Lima navigates these complex energy and infrastructure issues, the council's decisions in the coming weeks will be crucial in shaping the financial landscape for its residents, balancing the need for economic development with the imperative of affordable utility costs.