DELAWARE — The city of Delaware’s electric aggregation program will officially end in June after city council allowed the current contract to expire earlier this spring.
The city announced that letters have already started going out to customers notifying them of the transition. No action is required from residents for the change to take effect.
Customers currently enrolled in the aggregation program will automatically return to the default electricity generation supply offered by AEP Ohio or Ohio Edison once the current contract expires in June.
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.
Delaware voters approved electric aggregation in 2022, authorizing city council to negotiate group electricity pricing on behalf of the community.
The city selected Energy Alliances to manage the program and secure an electric supplier.
Although the current program is ending, the city said Energy Alliances will continue monitoring electricity markets for pricing and renewable energy options.
If market conditions improve, the city could revisit restarting the aggregation program in the future.
Residents with questions about the transition or their electric bill can contact Energy Alliances Monday through Friday from 8 a.m. to 4:30 p.m. at (513) 794-5555 or (800) 735-0359.
Why is the aggregation program ending?
At their April 13 meeting, Delaware City Council allowed the city’s aggregation contract to expire rather than renew it amid rising electricity costs and market uncertainty.
Quarterly reports from the city show the aggregation program was successful when it launched in 2023. In March, Energy Alliances said the program had generated more than $5.2 million in community savings since launching in 2023.
However, the savings advantage narrowed significantly by 2025 as electricity markets changed.
In 2023, residents enrolled through AEP Ohio saved an average of 36% compared to the utility’s default electricity supply rate, while Ohio Edison customers saved more than 34%. Average participant savings exceeded $210 during the program’s first six months.
By comparison, 2025 reports show average savings had dropped to roughly 9% for both AEP Ohio and Ohio Edison customers, with average yearly savings closer to $100 per account.
The reports also show electricity prices rose substantially over that time period. In 2023, the city’s aggregation rate for AEP customers was about 7 cents per kilowatt-hour. By mid-2025, that rate had increased to more than 9 cents per kilowatt-hour.
Similar increases occurred for Ohio Edison customers.
Even with those increases, the aggregation program still generally outperformed default utility pricing in 2025.
However, Energy Alliances warned council that wholesale electricity and “capacity” costs — fees tied to ensuring enough power generation exists to meet future demand — would continue to rise.
Future contracts were projected to rise even further toward 10.7 cents/kWh or higher.
