ALTON - The City of Alton was recently notified by Good Energy, Alton’s consultant, that Ameren Illinois has established its new residential electric rate for city customers, which took effect June 1st. The new Ameren BGS1 Residential rate is $0.08162, compared to the City’s Program base rate of $0.1220. City residents should know that the newly filed rate can return to an upward swing anytime during that period.
City officials said their goal was to give Alton 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 per month during that time and many larger users were saving more.
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The new rates are lower than Alton’s current municipal electrical aggregation contract with Constellation New Energy which is $0.1220. For the average residential customer using 800 kWh per month, this would equate to around $30 a month.
Mayor Goins stressed that a key component of the city’s aggregation program is allowing residents a cost-free opt-out option. The program is designed for Alton residents to have a choice whether to participate in the program or not.
Although Alton’s municipal aggregation rate will be higher than Ameren’s current 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.
The City’s Program has been very successful since its inception in 2012, when a referendum was passed by city residents, and has saved Alton residents a considerable amount of money over the length of the program. The program has also provided residents rate protection regardless of the volatility and marketplace conditions.
Residents always have the choice to opt-out of the municipal 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 Alton Municipal Aggregation Program should Ameren increase their rates.
Residents who would like to opt-out of the program should contact Constellation New Energy 24/7 at 833-618-0066 or visit the following website www.constellation.com/
Residents are not required to sign a contract and will not be contacted by a salesperson. If approached by an electric marketer, residents should be aware that they are not part Alton’s electrical aggregation program
If you are a new residential electric customer, or uncertain if you are enrolled in Godfrey’s aggregation program, contact Constellation New Energy at 833-618-0285. Ameren can be contacted at 800-755-5000.
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