Ameren Illinois has released its new residential electric rate for customers in the O’Fallon and Shiloh areas.
Effective June 2018, the new Ameren summer rate (June 2018-September 2018) is 0.0460 per kwh and the non-summer rate (October 2017-May 2019) is 0.0515. These rates are lower than O’Fallon and Shiloh’s current municipal electrical aggregation contract with Homefield Energy, which is 0.0570. The municipal aggregation rate will decrease an additional 2% to 0.05596, beginning June 2019 and lasting through December 2020.
“As we work to be good custodians of your tax dollars, we are always looking for how we can save you dollars. When the municipal aggregation contract was signed in the Fall, 2017, Ameren’s current rate was 0.0617,” stated O’Fallon Mayor Herb Roach. “We felt it was important to let our residents know that they have the choice to opt out of the municipal aggregation program in order to take advantage of the lower Ameren rate. Each resident will have to do their own research in order to determine what is best for themselves.”
O’Fallon and Shiloh’s municipal aggregation rate is higher that Ameren’s current default rate. However, Ameren may raise their rates at any time if they file with the ICC and demonstrate that its costs have changed.
While the municipal aggregation rate is higher, Roach stated it delivers price stability and is expected to provide savings over the contract term.
“Since this program’s inception in 2013, it has saved our residents a considerable amount of money at a time when many are 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.”
Ameren’s current residential rate became effective in June (4.66 cents Summer; 5.15 cents Non-Summer), which runs through May 2019, when new annual rates will be announced. Ameren’s rates for small businesses are higher, averaging approximately 5.5 cents annually. Ameren retains the right to raise rates if its costs rise, while Shiloh’s aggregation contract price will not change during the term.
While Shiloh’s 3-year fixed rate is higher than Ameren’s default rate for the next 12 months, it will deliver price stability and is expected to provide savings over the contract term. The 3-year contract term at fixed, stable rates offers a hedge against unknown future utility rates. This approach has resulted in substantial overall cumulative savings since the inception of the program for participating residents and small businesses.
In addition to long-term savings, the certainty of price stability is a core benefit of the aggregation program at a time when utility rates have been fluctuating quite considerably.
In either O’Fallon or Shiloh’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 either municipality’s electrical aggregation programs.
There is no risk for the residents and no contracts, but we still feel that it is important to have a choice in whether to participate or not, so if you ever feel that this is not a good choice, you can switch back to Ameren or any other vendor at any time by contacting Homefield Energy at 866-694-1262.
Customers that choose to opt out of the aggregation program are subject to a contract lock period and the utility will not allow you to re-join the O’Fallon or Shiloh Municipal Aggregation Program for 12-months.
O’Fallon and Shiloh’s contract includes over 110 municipalities with a possibility of over 850,000 residents throughout the state of Illinois. 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 either city’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 firstname.lastname@example.org. or John Marquart, Shiloh Village Administrator at 618-632-1022 Ext. 116 or at email@example.com.