Looking for answers about Wadsworth’s Gas Aggregation Program?
The city is seeking a lower-priced source of natural gas, so Wadsworth can establish a new Gas Aggregation Program in the near future. Stay tuned!
Here is what is going on.
1. In 2020, Wadsworth signed a new supplier agreement that allowed participants in the city’s Gas Aggregation Program to purchase natural gas for $3.05 per Mcf1. The city has been able to offer this low rate because we entered into the agreement when natural gas prices were at their lowest level in more than 20 years. That agreement expires at the end of October 2022.
2. Over the past several months, the city has been analyzing energy markets and consulting with industry experts to find an affordable supplier that will allow Wadsworth to begin a new aggregation program. Unfortunately, gas prices in 2022 are at their highest level in more than a decade, and the best offers available to the city offered participants essentially no discount from November through March 2023 and required the program to lock in gas prices at a rate more than twice our current rate from April 2023 through October 2024. We concluded that the best “deal” offered to Wadsworth at this time was no deal.
3. The future direction of energy prices depends on variables outside our control. We do not have a ‘crystal ball’ to forecast which direction prices will go. Still, we believe current market conditions suggest natural gas prices will decline to a level that allows Wadsworth to offer participants another affordable Gas Aggregation Program.
What happens now?
On November 1st Wadsworth’s current aggregation program ends, and Dominion Energy automatically replaces IGS as the customer’s energy supplier. Pricing reverts to Dominion Energy’s standard pricing structure.
Alternatively, residents may opt-out of Dominion’s plan and choose another gas supplier under Ohio’s Energy Choice program. To learn about this program or compare supplier offers, please visit www.energychoice.ohio.gov.
Note: Residents may choose to enroll in Wadsworth’s next aggregation program when one becomes available.