Natural Gas Aggregation comes to Troy
Vol. III, No. 90 - The City finally finds a natural gas aggregator; but is it the best deal in town?
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In May of 2023, voters in Troy approved a program that would allow the city to enter into aggregation agreements with natural gas suppliers for residental and small business customers. After a couple of hiccups along the process of securing aggregation conracts, Troy residents will soon receive letters about the city's new program, scheduled to begin in November 2025. While the program offers stability and convenience, savvy consumers should know that better deals may be waiting with a little research.
Understanding the Aggregation Program
The Miami Valley Communications Council, acting as the certified governmental aggregator for Troy and 17 other communities, recently negotiated a fixed rate of $7.195 per thousand cubic feet (MCF) with Archer Energy. Converting this to the more common measurement used by individual suppliers, this equals approximately $0.7195 per hundred cubic feet (CCF). The program runs from November 2025 through May 2027, providing nearly 20 months of price stability.
Troy residents will be automatically enrolled unless they choose to opt out by calling the number provided in their notification letter. The program promises protection from market volatility and the convenience of staying with CenterPoint Energy for billing and service issues. City officials point to similar electric aggregation savings of nearly $350 annually as evidence of the program's value.
What Individual Market Options Reveal
But the residential electric and natural gas markets aren’t exactly the same. Thanks to the research of one of our supporters and readers (thanks Steve!), an analysis of current natural gas offers available through Ohio's Energy Choice website reveals 28 suppliers offering rates lower than Troy's aggregation rate. Our good reader, shared information from the Ohio Energy Choice website using their “Apples to Apples” comparison tool looking at different aspects such as contract rates, contract lengths and early termination fees.
The competitive landscape shows significant opportunities for additional savings, with some rates nearly half the aggregation price.
The lowest available rate comes from Provision Power & Gas at $0.41 per CCF, though this introductory rate applies only for the first month before switching to variable pricing. For consumers seeking stable, long-term rates, Energy Harbor offers $0.599 per CCF for either six or twelve months with no monthly fees or early termination penalties.
Ohio Natural Gas provides particularly attractive options, including a six-month fixed rate of $0.539 per CCF. Their 12-month option at $0.599 per CCF requires only a $12.50 early termination fee, significantly lower than many competitors.
The Numbers Game: Potential Savings
For a typical household using 100 CCF monthly, choosing the Energy Harbor 12-month rate at $0.599 per CCF instead of Troy's aggregation would save $12.05 per month, or approximately $144 annually. Even conservative options like AEP Energy's 12-month rate at $0.659 per CCF would save $6.05 monthly compared to the aggregation program.
These savings assume no additional fees, which vary significantly among suppliers. While some companies charge monthly service fees or substantial early termination penalties, others offer competitive rates with minimal additional costs.
Weighing Convenience Against Savings
And while price if often the largest consideration, the aggregation program offers other genuine advantages. Residents avoid the research time needed to compare dozens of options, and automatic enrollment means no forgotten deadlines or contract negotiations. The program also provides protection against choosing unreliable suppliers or falling victim to high-pressure sales tactics.
CenterPoint Energy continues handling all billing and service issues, maintaining familiar customer relationships. The nearly 20-month term provides longer stability than most individual contracts, and residents can still opt out without penalties if circumstances change.
Making an Informed Decision
Consumers comfortable researching energy suppliers and managing contract renewals can potentially save $100-200 annually by shopping individual market rates. However, these savings require ongoing attention to contract terms, renewal dates, and market conditions.
The aggregation program suits residents preferring convenience and guaranteed savings over maximum potential savings. The $0.7195 per CCF rate, while not the lowest available, remains competitive and provides valuable price protection during the contract period.
Troy residents should consider their personal preferences for managing utility contracts, comfort level with energy market research, and willingness to monitor contract renewals when deciding whether to participate in the aggregation program or pursue individual market options.
The opt-out letters for the natural aggregation program should be arriving in mailboxes next month and will provide the final opportunity to make this choice. Residents choosing to explore individual options should research suppliers carefully, understanding all fees and contract terms before making commitments. Those preferring the security and simplicity of the aggregation program can simply do nothing and enjoy the benefits of collective bargaining power.
Our residents can learn more through the Ohio Energy Chioce’s website “Apples to Apples” comparison tool here.
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