WOOD RIVER – Consultant Good Energy has informed the City Of Wood River that Ameren Illinois has established its new residential electric rate for customers in the Wood River area and these rates should be released by June 1.
Although the rate filings are not yet official, the preliminary rates for Ameren BGS-1 Residential, which would be from June 2023 – May 2024, are estimated to be $0.08450-$0.08650. However, residents need to also know the newly filed rate can return to an upward swing anytime during that period. The City feels it's extremely important and the message is clear, we work hard to help the residents save money on their electric bills and do so in the safest way possible.
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The residents of Wood River have experienced huge savings while participating in the aggregation program. The City of Wood River goal was to give residents an alternative to Ameren's utility rates. The previous program period which ended in December 2022 secured fixed base rates of $0.0429 for nearly 8 months while Ameren's rates were peaking at well over $0.12 cents, saving the residents over $0.08 cents per kilowatt hour used. The average user was saving $65.00 per month during that time and many larger users were saving much more. However, these new rates are lower than Wood River’s current municipal electrical aggregation contract with Constellation New Energy which is $0.1220. The variable difference for the residential rates will be between $0.0375 -$0.0355. For the average residential customer using 800 kWh per month, this would equate to approximately $30 a month.
With the extreme volatility in the energy markets, in terms of both commodity and capacity, aggregation programs have added to our primary goal of consistently saving the residents money, to seeking the best available rates, and allowing those rates to be insurance and protection during volatile times in the market while retaining the option to leave at any time without penalty.
Up to this point, the new program rate has been successful, with the current aggregation base rate staying below Ameren’s all-inclusive rate, while residents are protected from the threat of yet higher rates.
A key component of our aggregation program is allowing residents a cost-free opt-out option. The program is designed for the residents to have a choice whether to participate in the program or not.
Although Wood River’s municipal aggregation rate will be higher than Ameren’s proposed default rate, it is expected that high levels of volatility will continue. While the municipal aggregation rate is higher, the current agreement provides stability, protection, and optionality with a fixed rate through December 2024.
“Since this program’s inception in 2012, the municipal aggregation has saved our residents a considerable amount of money at a time when many were struggling financially,” said City Manager Steve Palen, “Since the concept of the aggregation program was offered to the residents of Wood River in 2012 in the form of a referendum, which was passed by the residents, We believed residents should have a choice if they want to participate in the program.”
"In our community’s aggregation program, residents are not required to sign a contract and will not be contacted by a salesperson," Palen said. "If you are approached by an electric marketer, please be aware that they are not part of Wood River’s electrical aggregation program.
"Customers that choose to opt out of the aggregation program are subject to a contract lock period. There is a utility hold after leaving the aggregation and returning to Ameren. If the resident does not choose a different alternative supplier within 60 days, they must remain with the Utility (Ameren) for an additional 10 months or 1 year total and will not be able to re-join the Wood River Municipal Aggregation Program should Ameren increase their rates."
Due to Ameren’s projected lower rates, residents may choose to opt-out of the municipal aggregation program. If you would like to opt-out of the program, please contact Constellation New Energy 24/7 at 833-618-0283 or you can go to the following website www.constellation.com/il-woodriver In order to opt-out you will need your Ameren Account Number, name on the account, and service address. All of this can be found on your Ameren electric utility bill.
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