DAYTON, Ohio (WDTN) — The City of Dayton made an announcement regarding the new Dayton Electric Aggregation Program that’s set to start in exactly three weeks.

According to the City of Dayton, the program will be approximately 30 percent cheaper than the AES Ohio standard service offer rate and it will feature 100 percent renewable energy. The city also said participants in the Dayton Electric Aggregation Program will not be affected by AES Ohio’s recent proposed rate increase.

The city announced that starting June 1, 2022, participants will receive 100% renewable energy at the price of 7.457 cents per kWh for a period of 12 months, significantly cheaper than AES Ohio’s new rate of 10.91 cents per kilowatt hour, also going into effect June 1.

“The dramatic proposed rate increases announced by AES would place considerable financial stress on residents. However, I’m happy and relieved that we at the City of Dayton have given our residents a better and cheaper option,” Dayton City Commissioner Matt Joseph said.

Roughly 30,000 City of Dayton residents and businesses are eligible to save $300 annually on their electric bill. AES Ohio will still deliver power to the Dayton residents and businesses from the new source, SOPEC.

“On their bill, they will see in the top corner SOPEC and AEP Energy, because that is where the actual generation charge will come from, or the supply charge is coming from,” said Director of Southwest Ohio SOPEC Philip Leppla.

Commissioner Joseph estimates they will save a total of $10 million for all participating Dayton Electric Aggregation Program customers. Eligible customers will still see a slight increase in their bill, but it will be dramatically less than it would be with AES Ohio’s increase.

“It’s saving them 30 percent savings from where they would’ve gone had they just stayed in the standard offer,” said Leppla.

To be eligible, participants must use less than 700,000 kilowatt hours per year and not be on another rate plan, which Commissioner Joseph believes plenty will benefit from. The city said that eligible residents and small businesses are currently receiving an “opt-out” notice in the mail from SOPEC and SOPEC’s electricity supplier AEP Energy. No action is needed to participate in the program for those receiving the letter said the city.

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