PRESS RELEASE: Update On Electrical Aggregation
Date: June 6, 2022
Electric Aggregation Update
Pekin, along with 34 other central Illinois communities, participates in a regional buying pool (aggregation group) to bring competitive electric supply rates to its residents and small business customers. Every few years, electric supply pricing is bid out and purchased by these communities. The most recent contract ended June 1, 2022. Over the last several months, aggregation group’s electric energy broker (Good Energy) has been working through the high volatility of the electric supply market. Unfortunately, Good Energy has indicated that they were unsuccessful in obtaining an electric supply quote for the group that was cheaper than Ameren’s non-summer rate.
Residents will therefore now be automatically put on Ameren’s utility rates for the next 12-months (June 2022 – May 2023). There is no additional action necessary by the City or its residents for this to occur. Ameren’s utility rates for residential customers is the following for the upcoming Summer and Non-Summer months (cents per kilowatt-hour):
Summer Rates (Jun – Sep 2022) = $.1063 per kWh used
Non Sumer (Oct 2022- May 2023) = $.1273 per kWh used
Good Energy advises that Ameren’s utility rates are likely the best deal and scenario for residents until next year when rates will be bid again. Residents do however have the choice until the end of July to pursue other energy supply options at their discretion, but should be very cautious of the details of any plan (e.g. the fine print), especially if any such plan carries any variable rate terms. Plans can be compared at the following website: https://www.pluginillinois.org/offers.aspx?said=3. Also of note for residents that find another supplier is that if they lock into a long term supply contract, they may not have the ability to take advantage of any aggregated competitive bidding in April/May 2023 when energy price trends are indicating a decline.
The City will keep monitoring updates with electric aggregation and share them as they become available.
Date: May 16, 2022
Contact: Mark Rother, City Manager, firstname.lastname@example.org, 309-478-5371
There have been many questions brought up about electric aggregation and Ameren’s recent mailing about the termination of the aggregation agreement on June 1, 2022, with electric supplier Homefield Energy. Volatile pricing and supply shortages have prevented the City’s electric energy broker from securing a new contract this spring for the supply of our community’s aggregation program. Customers will therefore at a minimum be returned to Ameren Illinois’ supply for the months of June and July (billed in July and August respectively). Customers do not need to take any action for this transition to the utility’s supply. Ameren has or will send out written notification of this change.
Ameren’s utility rates for residential customers in the following for the upcoming Summer and Non-Summer months (cents per kilowatt-hour):
|Summer Rates (Jun-Sep 2022)
TOTAL = 9.881
Non Summer (Oct 2022- May 2023)
TOTAL = 11.926
Good Energy, the City’s electric energy broker, is diligently working with multiple suppliers to establish a reasonable and competitive price for our community’s aggregation program, which allows resuming our community’s service by August 1. Recent trends have shown a promising decline or moderation in rates. The overall goal will be to achieve a rate that is better than Ameren’s non-summer rate.
Good Energy has therefore advised us to not take any action at this moment and to wait until mid-June to see if favorable pricing can be negotiated; bid upon, and secured for the community and its residents. At the end of the day, however, the consumer can always choose to pursue other energy supply options at their discretion.
The City of Pekin will have a representative from Good Energy at its next regularly scheduled City Council meeting on May 23, 2022, to answer any questions or concerns about aggregation.