Natural gas aggregation rate spiking for customers enrolled in city of Akron's plan
As colder temperatures send people scrambling to bump up their thermostats, many Akron residents are going to have to budget for rising costs to keep the warmth pumping out.
Natural gas customers enrolled in the city of Akron’s aggregation program with IGS Energy will see a rate increase that will take effect in November for December billing.
The new fixed rate is $4.55 per 1,000 cubic feet (Mcf), and the current fixed rate is $3.81 per Mcf, the city said in a news release. That’s a 74 cent increase per Mcf.
The $4.55 per Mcf rate will be in effect through October 2026 for November 2026 billing, the release said.
Residents and small businesses that purchase natural gas through the aggregation program can leave the program at any time free of charge and choose to purchase from a different supplier on the open market. If they later choose to rejoin the program, they will not be charged an additional fee, the release said.
Current customers in the program will be automatically opted in for the new rate unless they opt out by Oct. 31, the release said. Customers can opt out by calling or emailing the city. The program’s customers and residents without a contract have been mailed opt-out letters, the release said.
Residents who are not currently in the program and wish to participate can call the toll-free number 877-353-0162.
What is a natural gas aggregation program?
Communities such as Akron participate in natural gas aggregation programs to negotiate better supply rates for residents and small businesses than natural gas customers can obtain on their own.
Aggregation programs solely address the supply portion of customers’ natural gas purchases, as the purchases and bills include distribution and supply portions. Enbridge, formerly Dominion, distributes natural gas to Akron residences.
Should I quit or join Akron’s natural gas aggregation program?
Customers who are interested in exploring other natural gas supply rates can perform research on the Public Utilities Commission of Ohio’s “Apples to Apples” charts.
Offers listed on the “Apples to Apples” charts vary based on factors such as price per Mcf, whether the rate is fixed or variable, the offer’s term length and whether there is an associated termination fee.
Why are natural gas rates going up?
When cold weather hits, customers use more natural gas.
Dave Jankowski, spokesman for nonprofit natural gas and electricity aggregator the Northeast Ohio Public Energy Council, said in early April that last winter was “extremely cold.” He said companies “took a lot of gas out of the ground as opposed to the two previous winters, where we had a lot of gas in the ground, and prices were historically low.”
Patrick Williams covers growth and development for the Akron Beacon Journal. He can be reached by email at pwilliams@gannett.com or on X, formerly known as Twitter, @pwilliamsOH. Sign up for the Beacon Journal’s business and consumer newsletter, “What’s The Deal?”