The City of O’Fallon has announced the renewal of its municipal electricity aggregation program with a new supplier, Constellation NewEnergy.
An official release from the city further stated:
“The City’s primary goal is to protect our residents from the continued rise in electric supply rates.
Since June, O’Fallon residents and small businesses participating in the municipal electricity aggregation program have been receiving rates of $0.0439 cents versus the Ameren rate of $0.10628 cents.
This equates to an average household savings of over $50 per month, with larger households saving considerably more. Ameren’s current price to compare (PTC) as of Oct. 1, 2022, through May 2023 is $0.12236 cents.
The City, along with its consultant Good Energy L.P., has secured a fixed rate of $0.1220 cents for a 22-month term starting in February, which is less than the current Utility PTC. Therefore, if the rate with Ameren continues to increase, the residents and small businesses in our community have the option of price protection.
Residents and small businesses concerned about a decrease in Ameren rates could simply opt-out of the aggregation program. If residents decide to opt out of the program and return to Ameren they will be forced to stay with them for a minimum of one year.
Over the next 60 days, each household will receive a notice from Ameren stating their accounts will return to Ameren, but only for two billing cycles. Shortly thereafter, residents will receive the opt-out letter from the new supplier Constellation NewEnergy. If residents and small businesses wish to continue participating in the program, they simply do nothing. They automatically are enrolled when the program restarts with February’s billing cycle.
Lastly, Ameren will send a third letter stating you have chosen Constellation NewEnergy and residents and small businesses have 10 days to opt out. Unless account holders opt out of the program they are automatically enrolled.
Since the inception of the program over a decade ago, every community has realized savings for their residents over the length of the program. There is no guarantee, however, the success of the program speaks for itself. Currently upwards of 90 percent of all residents in the participating communities in the Metro-East participate in the program.
We are fortunate to partner with Good Energy L.P., the largest municipal aggregation consultant in the US, whose headquarters are in New York, and have regional offices in Edwardsville and Peoria, Ill.
During these trying times, the City officials feel an obligation to help our community residents reduce their costs and protect them during uncertain times.
Please be cautious of other suppliers offering cheaper rates and incentive packages. These are often misleading and do not guarantee lower rates; instead, they cost more in the long run. “
Questions or concerns about the municipal aggregation program can be addressed via email at email@example.com or by phone at (844) 686-4244. The City’s contact is Sandy Evans, director of finance, (618) 624-4500, extension 8722.