Electric Aggregation Program
Dear Hanna City Resident –
We recognize many of you have received letters regarding electric aggregation over the last several weeks. Please know the Village has and will continue to search for the best electric aggregation provider for our residents. Below please find an update the Village received from Good Energy, the vendor we have used for the past several years.
ELECTRIC AGGREGATION UPDATE June 1, 2022
Good Morning:
Spiking prices and supply shortages prevented us from
securing a contract for our aggregation programs in your
community’s program. Participants will be returned to Ameren
Illinois supply effective with the June billing cycles. Customers do not need
to take any action for their accounts transition to utility supply.
Ameren has been sending confirmation notices to account holders.
Energy markets have experienced a significant price spike through the Winter
and Spring, and these skyrocketing prices are reflected in Ameren’s
recently announced utility rates for residential and small business
customers. The annual average for Ameren’s current residential rates is
approximately 12 cents per kwh, and represents a dramatic increase for all
electric consumers in the Ameren service area.
Alternative suppliers such as Homefield Energy, who has been the aggregation
program’s supplier since its inception, are not offering prices that are
competitive with the utility’s published rates, despite the significant
increase in prices. This means that customers returning to Ameren’s
supply will most likely remain with the utility until next May due to the utility
rule requiring such customers to remain on utility supply for 12 consecutive
months.
While these market conditions are unprecedented, we do not expect the current
pricing levels or generation supply shortages to endure for the long
term. We continue to communicate with suppliers, including some new
entrants to the Southern Illinois market, about future energy supply for our
purchasing group. We fully expect to resume the program in May 2023, and
will update you as we make progress in following market developments.
The Village is currently
working with a consultant to monitor the situation and search for the best
option. Currently it appears that is for residents to work directly with
Ameren.
If that should change we will
certainly let all Hanna City residents know.
Best Regards,
Anthony “Tony” Fryxell
President
Village of Hanna City