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Sangamon County Electric Aggregation Consortium to return to Ameren default supply

5/23/2014

 
Williamsville, one of the fourteen communities that make up the Sangamon County Electric Aggregation Program, has determined that it will likely return to the Ameren default electric supply for at least the next twelve months, following the announcement of Ameren’s new estimated price-to-compare at a rate about 7% lower than its current default supply rates. 

 

Residents in Auburn, Buffalo, Cantrall, Dawson, Divernon, Grandview, Illiopolis, Mechanicsburg, New Berlin, Pleasant Plains, Rochester, Sherman, Spaulding, and Williamsville who did not opt out of the initial program, as well as some residents of unincorporated Sangamon County who opted into the program, have been receiving fixed price electric supply at 4.19¢ per kWh over the last year. Given current indicative pricing from Alternative Retail Electric Suppliers for the coming program year, the Consortium has determined that returning to the Ameren default rate for the next twelve months will secure the most favorable pricing for residents possible at this time.

 

Communities will have opportunity to re-enter the power market after a period of twelve months to seek alternative supply options should they deem it beneficial. “Our goal for the entire aggregation program is to ensure that our residents are getting the best pricing and most favorable contract terms available to us for each program year,” said Brian Cuffle, Aggregation Consortium Executive Committee member and Village President of Spaulding. “After researching our options and working to learn about Ameren’s pricing, we are confident that right now, that means allowing resident to return to Ameren’s default supply. In the future, it may mean that we go back out to bid for another supplier.”

 

Residents will automatically be switched back to the default supply if they do nothing. Aggregation program members in some communities have begun receiving letters notifying them that their accounts have switched to the default rate following the expiration of the FirstEnergy Solutions contract. For those who wish to remain on the default, no action is necessary.

 

The Consortium’s decision to return to Ameren default supply for the next year does not prevent residents from individually seeking their own Alternative Retail Electric Supplier. Those residents that wish not to return to the Ameren default supply and remain there for the duration of the twelve-month period  will have two billing cycles to seek an alternative supplier after the Consortium program contract with FirstEnergy Solutions ends during the May billing cycle.

Consumers interested in exploring other alternatives can visit the Illinois Commerce Commission’s website at http://pluginillinois.org/res.aspx or at the Citizen’s Utility Board at http://www.citizensutilityboard.org/ciElectric_cubfacts_alternativesuppliers.html.

 

All Consortium decisions relate exclusively to the supply portion of residents’ electricity bills. The aggregation program does not have any effect on Ameren’s proposed delivery rate increases, which are related to a modernization project being undertaken by the utility.

Electrical Aggregation

5/20/2014

 
As a result of this price-to-compare information, the Executive Committee has met and determined that they feel it is in the best interest of the Aggregation program to allow residents to roll back to the Ameren default supply for the coming year, rather than entering a contract for alternative supply at a higher rate. This does not discontinue the Aggregation program, which could re-enter the market for new bids next year should market conditions be different.

 

In some communities, residents have begun receiving letters notifying them that their accounts are being returned to the default electric supply. If they wish to remain on the default rate as recommended by the Consortium Executive Committee, no action will be necessary. If they wish to seek alternative suppliers on their own, they may do so within 2 billing cycles. The Consortium’s consultant advises that it is unlikely that we will see market conditions drop to a rate for alternative supply that is favorable as compared to the default rate within this program year’s timeframe.

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