You and your neighbors have the opportunity to save money on the cost of your electricity supply. More than 2 million Illinois residents have already done so. A change in law in January 2010 permitted community residents to pool, or aggregate, their electric usage to seek competitive bids for lower prices on the open market. That law has driven down the price of electricity.*
We invite you to read on to learn more about “Municipal Electric Aggregation.”
*Based on actual bidding under the program. (Source: Illinois Commerce Commission, Plug In Illinois.)
You are in the driver’s seat when it comes to electric aggregation with real choices along the way. And there will be opportunities— objective opportunities— so you can make up your own mind.
The Referendum
The law enabling electric aggregation requires that you and your neighbors first be allowed to say yes or no to the idea in a referendum. In communities in which the issue is on the ballot, the referendum will be held at the Primary Election on Tuesday, March 15, 2016.
If a majority approves, the community moves on to the next step, where you will continue to have have choices.
Public Hearings
The law requires two public hearings about your community’s electric aggregation initiative. You have the right to ask questions and fully understand how the program will work in your community.
Opting Out
Even if the majority of your neighbors votes for Municipal Electric aggregation, you will not be required to participate. The law gives you the right to “opt out” and to stay with your current electricity supplier or an alternate retail electric supplier. You can do so for any reason. In fact, you do not have to have a reason. And you will face no penalty or fee if you choose to opt out.
It’s your right.
You and neighbors in your community who receive electricity from a regulated Illinois utility have the opportunity to form a “buyers group” to buy electricity. It is available under the state’s Municipal Electric Aggregation law. Since the law was enacted in January 2010, more than 2 million Illinois home and small business owners have done so, achieving savings in the cost of their electricity supply.* You have the opportunity to do it, too, so that you can keep more of YOUR money in YOUR wallet.
Here’s how Municipal Electric Aggregation works:
The law (20 ILCS 3855/1-92) allows you and your neighbors to pool, or aggregate, your electricity demand. That greater volume gives you the kind of “market power” to win lower prices for your municipality’s electricity supply. People in some 600 Illinois communities participating in the program already are enjoying real savings—and keeping their money in their wallet.
*Plug In Illinois—Power of Choice. Illinois Commerce Commission
A change in law in January 2010 allows residents and small businesses in a community to pool, or aggregate, their demand for electricity to seek lower prices for electric supply.
The key benefit is the opportunity to achieve savings in the cost of electricity supply.
Other advantages are that the price of electricity is fixed for the duration of the contract and that certain costs, like fuel adjustment charges not included in the default supply price, are included in the electric aggregation price.
The municipality is not obligated to accept a proposed price.
The price bid under electric aggregation is fixed for the duration of the contract.
First, the municipality’s Governing Board passes an ordinance to place the question on the ballot so that residents have the opportunity to vote on it.
Next, residents vote whether to accept it. If residents pass the referendum, the community may seek lower prices for their electric supply.
The main difference is in the buying power aggregation provides to you. Such marketers generally sign up customers one at a time, and in most cases the price is higher. The price frequently has been higher than the price of power Ameren Illinois delivers.
If you wish to compare retail prices for electricity to the price your municipality obtains, some questions you might want to ask are:
1. What is the rate?
2. How does it compare to the municipal aggregation rate?
3. Is the solicitor’s rate fixed or variable during the contract period? Variable means the ratecan go up or down monthly.
4. Can the contract be terminated before it expires?
5. Is there an early cancellation fee and, if so, how much is it?
6. Does the rate include the transmission charge (the cost of getting electricity from the electric generating station to your community)?
7. Does the rate include fuel adjustment charges (the cost of fuel to generate electricity that exceeds the fuel cost built into the utility’s rate)?
Any resident and small business within the corporate limits of an Illinois municipality served by a regulated public utility is eligible to participate in a municipality’s electric aggregation program.
A small business that uses 15,000 kilowatthours or less per year is eligible.
Yes. The term “municipality” refers to units of government including cities, villages, unincorporated areas of counties, and townships.
In the same way as described above. The Governing Board passes an ordinance to place the issue on the ballot. Then the county or township’s residents vote on whether to accept it.
No. Each municipal government must establish its own program for its constituents.
No. Enrollment is automatic, and no one will call or visit.
If someone calls or visits claiming to represent your municipality or supplier, you may be scammed. Notify your municipality. You also may want to file a complaint with the Consumer Affairs Divison of the Illinois Commerce Commission.
Residential and small business constitutents in communities whose voters have passed a referendum to approve electric aggregation are enrolled automatically. No one, however, is obligated to participate. Residents may “opt out” for any reason and without penalty or cost.
Yes, and enrollment can be accomplished in three steps:
1. Sign up for service with Ameren
2. Obtain your Ameren account number.
3. Then call the municipality’s electric supply provider.
Yes, by simply following the steps above.
No. You have a legal right to opt for any reason and at no cost or penalty.
Both the supplier and Ameren notify every eligible resident and small business by letter of their right to opt out and indicate ways to do so, including a toll-free number to the supplier’s customer service desk.
Yes.
No.
Yes, but you will want to check your contract to make sure you would not be subject to a fee for cancelling your contract early.
No. Your account will not be included on the eligibility list to avoid the risk of an early cancellation fee. You will have the choice to enroll, however, if you wish.
Normally not. You will want to check with your municipality to find out how billing will be handled under your program.
You will continue to call Ameren’s toll-free number for service and billing questions.
You will call Ameren, which continues to provide distribution services in the municipality.
No. Standards by law and regulation for the quality of Ameren’s service does not change.
No. Ameren provides distribution service only. Any electricity it delivers within the community is provided by the Illinois Power Agency.
No. Again, Ameren does not supply power, so a change in the electric supplier will not affect Ameren’s rates.
That is determined by bid from qualified electric suppliers.
The new supplier will notify each resident and small business customer by letterof the bid price to compare and terms and conditions. That correspondence also will provide information about how to opt out for any customer who wishes to do so.
The duration will be determined in the bid. Suppliers usually propose rates for contracts of various durations.
Yes.
Included are the supply of electricity, transmission, and related charges adjustment.
Municipalities are not required to accept bids and may reject them.
Where might I get more information? Additional information is available from Ameren and the Illinois Commerce Commission.
Have additional questions? We suggest you go to the Ameren website, or the Illinois Commerce Commission’s website Plug In Illinois, for a comprehensive look at electric aggregation.