Municipal Aggregation Program

MARCH 2026

Once again, the Village of Mt. Zion has secured a competitive electricity supply rate for our residents. Through a formal RFP process, Direct Energy provided a rate of $0.1276/kWh, an increase from the current rate of $0.10899/kWh. This agreement is for a 14-month term beginning in June 2026.

Ameren’s summer supply rate will be released at the end of April. Our consultant anticipates that Ameren’s rate will be higher than the negotiated rate secured through this program.

The electrical aggregation program is an opt-out program, meaning residents and eligible small businesses will automatically be enrolled unless they choose to opt out or enter into an individual agreement with another supplier. Customers who opt out will not be eligible to re-enroll in the program for a minimum of 12 months.

Notification Process:

In April 2026, Direct Energy will mail notification letters to all Ameren accounts included in the aggregation program. These letters will outline the new rate and term and will initiate a 60-day opt-out period for those who do not wish to participate.

Residents who choose to opt out and return to Ameren supply will remain with Ameren for a minimum of 12 months. After the opt-out period ends, Ameren will send a separate letter confirming each account’s electricity supplier.

Instructions for opting out will be included in the Direct Energy mailing. There is no fee to opt out of the program.

Residents who choose to seek alternative suppliers are encouraged to review all terms carefully, including any additional fees or contract conditions, as these may result in higher overall costs than the aggregation rate.

Sample Direct Energy communications will be posted on this page as they become available.

Why are electric supply rates increasing?

Electric supply rates are increasing across Illinois and much of the country due to several factors that are largely outside of local control. The most important reasons are:

1. Higher costs to ensure reliability - Electric grid operators must make sure there is always enough power available—especially during peak times like very hot or cold days. The cost to secure this “backup” power has increased significantly in recent years, and those costs are now reflected in supply rates
2. Growing demand for electricity - Electricity use is rising faster than expected due to: Increased use of electric vehicles, growth in large energy users like data centers, and  continued population and economic growth. Higher demand puts pressure on the system and increases market prices.
3. Fewer power plants in operation - Some older power plants have retired in recent years, reducing the overall supply of available electricity.  With fewer facilities producing power and more demand, prices have increased.
4. Investments in the power grid - Significant upgrades are being made to improve reliability and modernize the electric grid.  While necessary, these investments contribute to higher overall energy costs
5. Market conditions beyond local control - Electric supply prices are determined through regional energy markets, not by the Village.  All suppliers—whether through municipal aggregation or the utility—are subject to these same market conditions.

What does this mean for residents?

The increase you are seeing is not unique to our community.  Municipal aggregation programs are still working to secure the most competitive rates available.  even with the increase, aggregation can still provide price stability and protection from market spikes.