2022/10/10 - Mayor's Column: Electrical Aggregation Rates
“AN OPEN DOOR TO O’FALLON”
A WEEKLY NOTE FROM MAYOR HERB ROACH
For the last eight years, O’Fallon has joined together with about 40 other communities in Southwestern Illinois to negotiate for lower electrical rates for our citizens. This aggregation program has resulted in millions of dollars of savings to our O’Fallon households.
Last week, I stated that our consortium was still trying to negotiate lower electrical rates than Ameren’s for our homeowners. I’m happy to state that we have been successful after many hours of discussions and following the fluctuating and volatile market in reaching a 22-month agreement with Constellation NewEnergy to be our new municipal aggregation electric supplier.
Our current rate with Homefield Energy will end in December and the new contract will go into effect in February of 2023. Yes, there is a two-month gap which you will then go onto Ameren supplied electric at a rate of 12.236 cents per kwh. Our new rate in February 2023 will be slightly lower at 12.20 cents per kwh but we are anticipating that Ameren could have another significant rate increase in June as it usually does for the summer rates. This past June, Ameren increased their rate by over 90%.
Over the course of the next few months, we will communicate by our city website, press releases, Facebook, and other means to let you know what to anticipate and what you will have to do to be on the fixed rate with Constellation NewEnergy. During the period between mid-October and January you will be receiving letters from both Ameren and Constellation NewEnergy regarding this transition.
If you want to have Constellation as your electric supplier at the negotiated rate and not with Ameren, you do not have to do anything when you start receiving the notifications in the mail. Your Electric supplier will automatically be switched from Homefield to Ameren for 2 months and then to Constellation NewEnergy in February. If you do not want to participate in this municipal aggregation program and remain with Ameren, you will simply return the “Opt Out” card you will receive in the mailing from Constellation NewEnergy scheduled for December 19. Keep in mind, if you do decide to stay with Ameren, there is a 12-month stay requirement before you can switch to another supplier. Under the Constellation NewEnergy agreement, a resident can always make the decision to switch to Ameren or any other 3rd party supplier without any penalty if you wish.
Please feel free to call us if you have any questions and watch for our updates as this transition takes place. There have been many hours of work go into this effort to save you money on your electric rates.
I personally will be allowing my electric service to be switched over to Constellation NewEnergy in February.
As residents of O’Fallon, you should always be able to reach out to your elected officials and ask questions about what is happening in O’Fallon. Having open communications is important to me and something I care very deeply about. Thank you for reading, and please remember, my door is always open.