O’Fallon, Illinois - The City of O’Fallon will see their municipal (electricity) aggregation program rates dip below Ameren Illinois’ residential and small commercial rates when Ameren’s summer rates begin in June 2021. Ameren’s recently published rates will be considerably higher than the City’s program rate, which is .0439 per kilowatt-hour (kWh). Ameren’s summer Residential and Small Commercial rates will be $0.04821 and $0.5349/kWh, respectively, from June through September 2021, and $0.04985 and $0.05558/kWh, respectively, for the non-summer months (October through May 2022), resulting in an annual utility Price-to-Compare (PTC) of $0.04923/kWh for residential customers and $0.05481/kWh for small commercial customers.
“We are pleased the Program rate is lower, but we also feel the current rate has several additional aspects which make it exceptional,” said Mayor Herb Roach. “Please be cautious of door-to-door sellers and mailers that will offer you a short-term decrease. Many will have large increases after a few months, and it will cost you more in the end.”
Other benefits of the aggregation program:
- The Program rate is fixed for 24 months and will not change during that time, in contrast to Ameren’s annual scheduled resets for both summer and winter rates.
- Eligible account holders may opt into the Program at any time and enjoy the same benefits of the Program for the balance of the contract term.
- Under certain circumstances, Ameren may be able to request an increase in pricing through the Illinois Commerce Commission (ICC), having done so in the past.
- The Municipal Aggregation program allows a customer to opt out of the Program at any time without any penalties or fees.
- If an account holder opts out and does not select an alternative supplier within 60 days, they will be required to stay with utility pricing for a minimum of one year as stipulated by the utility.
- Volatility in the marketplace has no impact on the Program’s pricing, while market volatility can significantly impact the utility’s rate, since there is no contractual agreement between the municipality and Ameren.
- Municipal aggregation programs have had the notable effect of driving the overall cost of electricity supply down. Since the inception of this program, utility rates have gone from nearly six cents per kWh to the mid to upper four cent range.
Residents who have previously opted out of the Program may re-enroll if they meet eligibility requirements by calling their municipality’s supplier, Homefield Energy at (866) 694-1262, email [email protected].
“Since this program’s inception in 2013, it has saved our residents a considerable amount of money at a time when many were struggling financially,” said Mayor Herb Roach. “Ever since I sponsored this concept in 2012, I also believed that residents should have a choice if they want to participate in the program.”
In our community’s aggregation program, residents are not required to sign a contract and will not be contacted by a salesperson. If you are approached by an electric marketer, please be aware that it is not part of O’Fallon’s electrical aggregation program.
Customers that choose to opt out of the aggregation program are subject to a contract lock period and the utility (Ameren) will not allow you to re-join the O’Fallon Municipal Aggregation Program for 12-months.
O’Fallon’s contract includes 29 other Metro-East communities that participate in Good Energy’s Municipal (Electricity) Aggregation program. Illinois law allows municipalities and counties to negotiate the purchase price of electricity on behalf of residential and small business utility customers living within their borders.
If you are a new residential electric customer, or uncertain if you are enrolled in O’Fallon’s aggregation program, please contact Homefield Energy at 866.694.1262.
For more information about the electrical aggregation program contact Sandy Evans, O’Fallon Director of Finance, at 618-624-4500 Ext. 8723 or at [email protected].
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If you would like more information about this topic, please contact Sandy Evans at 618-624-4500 x 8723 or email at [email protected].