Municipal Aggregation Program
The Village of Mt. Zion was able to successfully negotiate a competitive electricity supply rate for our residents once again! Through an RFP process, Constellation Energy quoted a rate of $0.07859/kWh, an increase from $0.04240/kWh. This is a 36-month agreement that will begin in June of 2022.
Here are a few reasons why a 36-month rate was chosen for our residents:
- Ameren recently released their next 12 month's rates:
- Residential Summer Rate (June 2022 - September 2022): $0.0946/kWh
- Residential Fall Rate (October 2022 - May 2023): $0.11502/kWh
- Rates are going to continue to rise with the retirement of coal and natural gas plants. With this change, coupled with the current restrictions on Russian energy and the consolidation of China with Russia in the world market, it is anticipated that prices will continue to increase.
- Most importantly, if for any reason rates reduce dramatically, residents can opt-out and return to Ameren.
As mentioned above, the electrical aggregation program is an opt-out program, so residents and small businesses will automatically be enrolled unless they choose to opt-out or sign an individual agreement with another company. Customers who opt-out cannot re-enroll for a minimum of 12 months.
Notification Process: Residents will receive 3 letters before the contract starts. The first letter will be from the supplier (Constellation Energy) 60 days before the contract starts in June. The second letter will also be from the supplier (Constellation Energy) 30 days before the contract starts. The third letter will be from Ameren 10 days before the contract starts. The first two letters will include details about the program, the rate, the term and how to opt out if necessary. Opting out is a simple phone call to Constellation Energy and giving the account name and utility account number. There is no fee to opt out of the program. If a resident decides to opt-out and use another company for their electrical supply (such as Ameren or another supplier) make sure to read the fine print, looking for hidden or fixed fees that could potentially cost you more than the rate presented to you.
To verify enrollment in the electrical aggregation program, please contact Constellation Energy at 1-833-358-0518.
Frequently Asked Questions
How do I enroll?
The Municipal Aggregation Program is an "opt-out" program, meaning you will be automatically enrolled.
How much money will I save by participating?
Based on the average user (1,000 kWh/month), the total annual savings would be $351.16 over the Ameren default rate.
Why does the municipality negotiate prices on our behalf?
In 2012, the Village of Mt. Zion put a question on the ballot that stated: "Shall the Municipality have the authority to arrange for the supply of electricity for its residential and small commerical retail customers who have not opted out of such program?". The majority of the community passed the referendum, allowing the Municipal leaders to request prices for electriciy supply.
Can I still use budget billing?
Yes. You will still recieve a bill from Ameren like in the past and able to make payments based on any arrangement you had before.
Has the Municipal Aggregation worked?
Yes! Over the last 10 years, the municipal aggregation has saved our residents 12.7%.
Can I go back to Ameren?
Yes, you can reject the municipal aggregation program through the letters sent to you by the new provider (60, 30, and 10 days before the contract begins). If you decide to opt out of the program, you cannot come back in for 12 months. There is no penalty to reject participation in the program.
I had someone approach me at my home (door-to-door sales agent), can I use them instead?
If an outside market offers you a plan individually, you can take their plan. Under Illinois law, they cannot lock you into a term. All contracts are month-to-month from your typical door-to-door sales agent. We caution you to make sure the rate they present is the full rate. We have seen situations where there are hidden, fixed fees that make the overall price much higher than the aggregations rate. If you choose to go with a different provider, you cannot return to the aggregation for 12 months.