DELAWARE — Sometimes silence is the answer — at least it was for Delaware City Council on Monday.
By declining to act on Resolution No. 26-14, council opted to let the city’s current electric aggregation contract expire, hoping to secure better rates in the future.
An emergency clause had been attached to the resolution’s second reading, because approval Monday would have locked in new aggregation rates in time for July utility bills.
Because council does not meet again before a third reading could be held for the new rates, inaction effectively ends the current program without an immediate replacement.
“The [first contract], approved in April of last year, was only a 12-month contract, so it will simply lapse,” City Manager Paul Brake said.
“Utility ratepayers will pay the market rate starting in July. The aggregation program is not going away entirely — we’ll look at different options, but we may have to wait and see what occurs in the market.”
The city’s current aggregation program includes customers served by AEP Ohio and Ohio Edison, both of which were expected to continue under a renewed contract.
However, with electricity rates climbing, renewable energy not playing as large a role, and concerns about confusing public communication, council is holding off for now.
“So, non-action is action,” Councilwoman Linsey Griffith said.
What is an aggregation program? An electric aggregation program allows the city to negotiate electricity rates on behalf of residents using group buying power. Residents are automatically enrolled but can opt out at any time and choose their own supplier.
How much would rates change?
Energy consulting firm Energy Alliances recommended that council renew the contract for 24 months at a rate not to exceed 10.7 cents per kilowatt-hour.
That would mark an increase from current rates of 9.28 cents per kWh for AEP customers and 8.99 cents per kWh for Ohio Edison customers.
In a memo to city officials, the firm pointed to two primary drivers behind rising costs: power and capacity.
Power reflects the cost to generate or purchase electricity on the wholesale market and deliver it to customers. Those prices have climbed steadily since early 2025 due to higher demand expectations and tighter supply.
Capacity costs — which ensure enough power plants are available to meet demand — have also increased significantly in recent years, signaling concern that electricity usage could outpace available generation.
In simple terms, it’s getting more expensive to both produce electricity and guarantee there’s enough to meet demand — and those rising costs are showing up in higher rates.
The importance of communication
Beyond pricing, council members also raised concerns about how the aggregation program is communicated to residents.
When programs begin or end, utility providers — not the city — send letters to customers explaining their options. Those notices can include opt-in or opt-out language, which some officials say can be confusing, especially when multiple letters arrive in a short period.
The letters simply say a customer is back with a provider if the program ends, or that they can elect to be part of the aggregation rate if it’s new.
If residents receive multiple letters in the mail about their electric bill, council believes residents may be confused about who their provider is at a given time.
“I think if we [renew another contract] too soon, it’ll be confusing to rate payers to receive correspondence one month after another, saying, ‘No, it’s this, and then you need to opt out,'” Brake said.
“We just need to go back and reeducate.”
For now, the city will allow the current program to expire.
It remains unclear when — or if — a new aggregation contract will be introduced. And with energy markets continuing to fluctuate, there’s no guarantee the next aggregation rates will be lower than those proposed in this contract.
More reading from the City of Delaware about the electric aggregation program:
