MT. VERNON — The city executed a contract Friday morning which will set electric rates for residents in the electric aggregate program at $0.04194.
The new rate is for those who chose not to opt out of the electric aggregate, which was approved by voters last month. The winning rate was from Homefield Energy (Ameren Energy Marketing).
"The contract signed is for 24 months," said City Manager Ron Neibert. "Choosing the term is a balance. We got a 36 month price of $0.04308, but going that long, you are speculating on what you think prices will do."
Neibert said the tariff rate for Ameren through the end of May was at $0.05663; and at $0.04858 for the next 12 months.
"Customers will certainly be saving money," Neibert said. "We estimate they will save about $150 per year under this program."
According to information from Affordable Gas and Electric, the new rate represents a discount of nearly 26 percent off last year's Ameren supply rates, which were set at $0.05456 for winter and at $0.06169 for summer for an average blended rate of $0.05664.
"We are extremely pleased that Homefield Energy (Ameren Energy Marketing) was the winning supplier," stated Jeff Haarmann, managing parnter of AGE. "Homefield Energy has nearly 500,000 customers in Illinois and has established very competitive rates throughout Illinois."
Haarmann said area residents will begin to receive mailings from the city informing them of the winning supplier, the rate, terms and a sample letter from Ameren noting their account being switched to Homefield for the electric supply portion of their bill.
"This mailing is the official opt-out notice," information from Haarmann states. "No action is required unless a resident does not want the lower rate from Homefield Energy."
All billing will still come from Ameren IL and residents will see a small line change on the supply portion of their Ameren bill noting the Homefield Energy rate by June or July.
Additional information about the electric aggregation is available by calling AGE at 207-3450 or online at www.agellc.com/aggregation.