City of Centralia Achieves Lowest Municipal Electric Aggregation Rate Since 2014

Business
October 12, 2020

Centralia selected Collinsville-based Homefield Energy as the low bidder after a competitive bid with three of the country’s leading alternative retail electric suppliers recently for the local electricity aggregation program. Homefield Energy will deliver electricity at stable, fixed rates for 18-24 months, depending on the option selected by the community.

More than 100 communities in Central and Southern Illinois recently participated in a series of bids from the country’s leading competitive suppliers in June. The consortium-style buying group aggregates their residential and small business electricity loads in order to achieve volume purchasing leverage.

The result is the lowest aggregated electric rate in six years. Market-based rates have dropped nearly 40% since the market peaked in 2018 and locking in prices with a competitive supplier guarantees rate stability for a period beyond the utility’s comparable prices.

The new lower price becomes effective in December. In preparation for the new contract rates, residents and eligible small businesses will receive opt-out notices in the mail in early October, and customers who do not opt out will be enrolled at the new rates. There is no cost to participate in the program, and a customer may leave the program at any time without obligation.

New lower rates are the result of a months-long process. Good Energy, the consultant who manages the electric aggregation program, developed a bidding process which adapted to the COVID-19 restrictions and eliminated previous in-person group bidding events.

What now?

Residents will receive opt-out notices from the supplier and a confirming notice from Ameren regarding the switch to a new rate.

If account holders decide to opt out after becoming part of the aggregate, they can do so with no termination fee or obligation.

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