TALLMADGE, Ohio – The Tallmadge City Council authorized the administration to negotiate an amendment to the city’s electric aggregation program to mitigate the impact of surging regional energy capacity charges. The electric aggregation program, which allows the city to buy power in bulk for residents, is facing a volatile market where regional delivery costs have increased by over 800% since 2024.
Rising Costs of Electric Aggregation in Northeast Ohio
The primary focus of the March 30 special meeting was Ordinance 2026-42, which allows Mayor Carol Kilway to enter into an amended agreement with Dynegy Energy Services. Mayor Kilway explained that the city’s current rate of 8.63 cents per kilowatt hour (kWh) is set to expire, and current market trends are pushing new offers toward 10 cents per kWh or higher. These hikes are driven by PJM capacity rates—the cost of ensuring enough power is available on the grid—which rose from $28.92 per megawatt in 2024 to $269.92 for the 2025-2026 delivery year.
Evaluating Utility Market Volatility and Resident Options
Council members expressed concern over the “blank” rate in the proposed contract, but ultimately agreed that providing a city-vetted option is essential for resident protection. Council Member Dave Klein noted that while “Apples to Apples” comparison websites show lower rates, many of those plans include hidden monthly fees of $20 or more, which can make them more expensive for the average household. The electric aggregation program serves as a safety net for residents who do not wish to shop the private market, though the Mayor reminded citizens they maintain the right to opt out if they find a better individual deal.
Strategic Negotiations With Buckeye Energy Consultants
The city will continue working with its long-time broker, Buckeye Energy Consultants, to finalize a rate before the end of the week. Mayor Kilway stated she is pushing for a rate in the 9-cent range, despite the “at max” auction prices recently seen in the energy sector. By locking in a contract now, the city ensures that residents avoid being moved to the standard service offer, which is currently estimated at 9.33 cents and could climb higher during peak summer usage in June.
Liquor License Transfer and Ownership Changes
In addition to utility discussions, Council unanimously approved a motion to forego a formal hearing regarding a liquor license request for Shri Ganesh Ji LLC, located at 170 Circle. The permit classes, C1 and C2, are already established at the location; the request was a standard procedure following a change in business ownership. With no objections from the community or the police department, the transfer was cleared to proceed.