Springfield city anticipates a 40% rise in electricity expenses for various facilities and street lighting, beginning in October. The approved contract with Dynegy Energy Services East secures a fixed rate of $6.93 per kilowatt hour, totaling up to $6,116,381 over a 48-month period. This agreement covers locations such as the Springfield-Beckley Municipal Airport, the city’s water treatment plant, city hall, fire and police stations.

The increase stems from a significant surge in the PJM capacity auction, where prices escalated dramatically. City Finance Director Katie Eviston attributed this to increased demand and a scarcity of new power generation, a situation expected to persist for the next four to five years. The current rate of $4.85 per kilowatt hour, in place since October 1992, will increase to $6.93, resulting in an additional $1.5 million annually. The rate was significantly lower than an alternative offer from Ohio Edison, which would have cost $9.35 per kilowatt hour, or $2.1 million per year.

Due to the short validity period of the quoted rate, the approval was granted on an emergency basis. Eviston cautioned that prices are likely to continue rising due to prevailing market conditions. Of the 11 bids received, Dynegy’s offer was deemed the most favorable. Assistant Mayor Dave Estrop expressed concern over Ohio’s energy situation and questioned the possibility of incorporating renewable energy sources like solar power to mitigate electricity costs.

Larry Ricketts, advocating for safe water and a candidate for city commission, also urged exploration of solar and alternative energy options, citing his own experience with solar power and a claim against FirstEnergy. He highlighted the city’s potential for solar development, especially considering recent events and the energy sector’s practices.