‘People are going to be in shock.’ North Canton aggregation electricity rates to soar

NORTH CANTON ‒ Residents who use the city’s electricity aggregation program will experience a near-doubling of electricity supply rates next month.

The rate will jump from 4.34 cents to 8.14 cents per kilowatt-hour, according to Benjamin Young, deputy director of administration. Then the rates will soar higher after that at least through December.

Related: Electricity rates set to drastically rise in 2025 for thousands of Stark customers

Related: ‘Strength in numbers.’ North Canton joins NOPEC to minimize electricity rate hike

City Council in late February approved the city joining NOPEC or Northeast Ohio Public Energy Council, a council of governments based in Solon made up then of about 250 cities, villages and townships. Alliance joined in 2017. Massillon and Paris Township also agreed to join.

After many Stark communities locked in low electricity supply rates in 2021, those rates are expiring this year amid soaring electricity rates fueled in part by more data centers to drive artificial intelligence and perform massive computing tasks.

“All communities are facing this,” said Young.

The electricity supply rates are different from the rates charged by AEP and Ohio Edison for distribution and transmission, which are regulated by the PUCO.

Transition to higher electric rates in North Canton

The city’s four-year electricity aggregation rate with Dynergy of 4.34 cents per kilowatt-hour expires this month, Young said.

Because NOPEC’s term rates don’t start until June of each year, North Canton electricity aggregation customers will be charged a rate of 8.14 cents per kilowatt-hour by AEP during the one-month gap between contracts. Residents will get a letter from AEP informing them of this rate.

Starting next week, North Canton aggregation customers will receive letters from NOPEC presenting them with a choice. They can opt for the standard rate from June until December of 8.929 cents per kilowatt-hour with the hope rates drop after December. They can lock in a 12-month rate of 8.5 cents per kilowatt-hour starting in June. Or they can lock in a 24-month rate of 9 cents per kilowatt-hour, spending more in exchange for more certainty, Young said.

“You need to make the choice that’s best for you and your household,” said Young.

He said if the city had stuck with Dynergy, its rate would have jumped to 9.44 cents per kilowatt-hour.

City Director of Administration Catherine Farina said, “We will get a lot of phone calls. We know that.”

She added that she’s in talks with NOPEC on scheduling education sessions on the new rates for the public.

‘In shock’

Council President Matthew Stroia, At-Large, said, “People are going to be in shock. They start running their air conditioner this summer, and they see the cost of electricity.”

Those now in North Canton’s electricity aggregation program who take no action will automatically get the variable AEP rate of 8.14 cents per kilowatt-hour in May and 8.929 cents per kilowatt hour from June to December. NOPEC will strike a new rate for the months after that.

Customers can opt out of North Canton’s electricity aggregation program for free and go with AEP’s variable rate by default or choose another supplier’s offer on the Public Utility Commission of Ohio’s Apples-to-Apples Comparison website. Many of those suppliers will offer a lower rate coupled with a monthly fee.

Farina said, “We have people come in and say, ‘You can’t make us do this.’ We’re not.”

City residents enrolled in another plan will not be switched to the city’s electricity aggregation program unless those residents fill out to the paperwork to opt in, said Young.

Reach Robert at robert.wang@cantonrep.com.