Resolution 20230327 Opposing Sursee-Aviston Transmission Line
Click the link above to read Trenton’s Resolution
RESIDENTIAL POOL INFORMATION CAN BE FOUND HERE
MUNICIPAL ELECTRIC AGGREGATION PROGRAM
The City of Trenton is pleased to announce we have renewed our municipal electricity aggregation program with a new supplier, Constellation NewEnergy. The City’s primary goal is to protect, as best as possible, our residents from the continued rise in electric supply rates.
Since June 2019, City residents and small businesses participating in the municipal electricity aggregation program have been receiving a rate of $0.04390 cents versus the Ameren rate of $0.10628 cents. This equates to an average household savings of over $50.00 per month, with larger households saving considerably more. Ameren’s current price to compare (PTC) as of October 1, 2022 through May of 2023 is $0.12236 cents.
The City along with their consultant Good Energy LP has secured a fixed rate of $0.1220 cents for a 22-month term starting in February, which is less than the current Utility PTC. Therefore, if the rate with Ameren continues to increase, the residents and small businesses in our community have the option of price protection.
Residents and small businesses concerned about a decrease in Ameren rates could simply opt-out of the aggregation program. If residents decide to opt-out of the program and return to the Utility, they will have to stay with the Utility for a minimum of 1 year.
Over the next 60 days each household will receive a notice from Ameren stating their accounts will return to the Utility, but only for 2 billing cycles. Shortly thereafter, residents will receive the opt-out letter from the new supplier Constellation. If residents and small businesses wish to continue participating in the program, they simply do nothing. They automatically are enrolled when the program restarts with February’s billing cycle. Lastly, Ameren will send a third letter stating you have chosen Constellation NewEnergy and residents and small businesses have 10 days to opt-out. Unless account holders opt-out of the program they are automatically enrolled.
Since the inception of the program over a decade ago, every community has realized savings for their resident over the length of the program. There is no guarantee, however the success of the program speaks for itself. Currently upwards of 90% of all residents in the participating communities in the Metro-East participate in the program.
Questions or concerns about the municipal aggregation program can be addressed via email at gecsi@goodenergy.com or by phone at 844-686-4244. Feel free to contact City Hall at 618-224-7323.
Following is a reprint of a notice sent by the office of the Danville, IL Mayor regarding electric aggregation and the current Ameren rates. Although Danville has a different electric supplier, and their contract is slightly different than Trenton’s, the information presented is the same. Thank you Mayor Williams for giving us permission to share this.
Power Summary 7-26-24
Good evening, everyone! We’ve received a number of calls and I’ve seen a number of posts about drastically increased power bills. Many have been quick to blame Homefield Energy. Although I certainly will not recommend one entity over the other, I’d encourage you to dig a little deeper into your electric rates.
In 2020, the City entered a 3 year electrical aggregation agreement for a supply rate of 0.05293/kwh (5.293 cents) with Homefield Energy for our residential customers. I was incredibly disappointed at first because the Ameren supply rate ended up being slightly lower the first 9 months of the contract than the Homefield supply rate. However, Ameren’s rate went up substantially higher than Homefield’s for the remainder of the term. See below for 3-year trends:
Jan-May 2021: 0.04553 (0.00740 lower than Homefield)
Jun-Sep 2021: 0.04821 ( 0.00472 lower)
Oct-Dec 2021: 0.05407 (0.0168 higher than Homefield)
Jan-May 2022: 0.05478 (0.00185 higher)
Jun-Sep 2022: 0.10623 (0.10623 higher)
Oct-Dec 2022: 0.12236 (0.06943 higher)
Jan-May 2023: 0.11833 (0.06540 higher)
Jun-Sep 2023: 0.07877 (0.02584 higher)
Oct-Dec 2023: 0.08107 (0.02814 higher)
Long story short, for 9 months from 2021-2023, our Homefield supply rates were slightly higher than Ameren’s, but for the other 27 months, Homefield was MUCH cheaper! On average, Homefield saved us 35.1% per kwh, and at Ameren’s peak during Winter of 2022, Homefield saved us 56.7%. per kwh We were able to keep millions of dollars in our pockets because of the savings!
During the low usage season in 2023, we negotiated a new supply rate with Homefield for 2024-2025 of 0.09344/kwh (9.344 cents). Why would we take such a huge increase? It was because Ameren had shown us historically that they would eventually gouge us and they had requested a $1.3 BILLION increase! Currently, the Ameren supply rates are lower than Homefield like at the beginning of the previous contract, but not by a lot:
Jan-May 2024: 0.08136 (0.01208 or 14.8% lower than Homefield)
Jun-Sep 2024: 0.08136 (0.01208 or 14.8% lower than Homefield)
Online, it says Ameren rates are expected to increase in October 2024, but it does not give an amount.
So, if our Homefield supply rate has stayed the same since January (and will continue to do so through December of 2025), why did our bills go up so much this month?
Regarding supply rates, on our current bills, if you used 1678 kwh like I did, your Ameren electric supply rate would have been $136.52 whereas mine under Homefield was $156.79 ($20.27 more). Yes, higher, but not outrageously so.
Some of it is increased usage; we had an extra day and the days were hotter in June-July than they were in May-June. I alone used 666 more kwh than I did the month before, costing me an extra $62.23.
Finally, the one thing I would not have caught unless I carefully combed through my bill, was the huge 75.1% increase in Ameren’s Electric Delivery Charge from 0.03889/kwh to 0.06808/kwh! This cost me an extra $48.98 alone. Ameren delivers our power whether we use them or Homefield as our supply provider, so this fee is strictly on them and we cannot negotiate it.
In sum, our bills are higher than last month due to increased usage and Ameren’s outrageously increased delivery charge! Although the Ameren supply rate is currently slightly lower than Homefield’s, if trends stay the same as they did in the previous contract, Homefield would be the better deal over the long haul. That being said, given that we cannot predict with certainty whether or not Ameren’s supply rates will increase, you are gambling whether you stay with Homefield or go back to Ameren. Therefore, the City will not make a recommendation as to which way to go. You may opt out of Homefield any time without a penalty or fee by calling 1-866-694-1262. However, please note that if you do return to Ameren, they require a 1-year utility hold and the resident may not leave Ameren during that time regardless of their rate fluctuations.
I know this was a long post but I hope it helped everyone better understand our electricity bills in The City of Danville, IL. As always, we will do our best to provide options that save you money and continue to be good stewards of the resources you provide! #wearedanville #danvilleisus #danvilleproud #danvillestrong