ALTON - The City of Alton recently signed an energy aggregation agreement with a new energy supplier, Constellation NewEnergy, Inc. - but what does that mean for Alton residents and their energy prices?

Get The Latest News!

Don't miss our top stories and need-to-know news everyday in your inbox.

Energy prices in general are set to go up nationwide for the winter months - but after December, how much they go up in Alton depends on which electric supplier residents choose.

Section 1-92 of the Illinois Power Agency Act allows local governments to participate in a municipal electricity aggregation program to negotiate the price of electricity for residents and local businesses. Since this became law in 2007, Ward 7 Alderman Nate Keener said Alton residents have been able to choose where they get their energy from.

Article continues after sponsor message

“In the case of Alton, our local government negotiated on the electric market for a supplier of that electricity,” he continued. “Now that we’ve passed that, Alton residents will get to choose whether they want Ameren to deliver the electricity at the best rate Ameren can get, or whether they want to go with the supplier that we chose through that competitive process.”

Ameren’s current market rate is 12.236 cents per kilowatt hour, while Constellation NewEnergy’s rate is 12.10 cents per kilowatt hour. The City of Alton’s three-year contract with its current electric supplier, Homefield Energy, ends in December of this year. Their rate was 4.29 cents per kilowatt hour and had been locked in since the contract took effect three years ago, which Keener said protected Alton residents from Ameren rate hikes this past summer.

With that contract set to expire at the end of this year, Good Energy, LP negotiated on behalf of the City of Alton to secure the new Constellation rate, since Alton chose Constellation as its new energy supplier. The new contract with Constellation is set for a term of 22 months.

Keener said Alton residents should expect letters in the mail notifying them of the change in electricity suppliers and asking them to either opt in or opt out, depending on which supplier they prefer.

More like this:

Nov 4, 2022 | Edwardsville Residents Will Be Automatically Enrolled When Electricity Aggregation Program Returns In February

Oct 19, 2022 | Godfrey Mayor Mike McCormick Urges Residents To Stay With Electricity Aggregation Program

Oct 15, 2022 | Bethalto Aims To Keep Electricity Costs Down By Renewing Program With New Provider

Oct 20, 2022 | City of Wood River Renews Municipal Electricity Aggregation Program With New Supplier, Constellation NewEnergy

Oct 20, 2022 | Constellation NewEnergy Announced as New Electricity Program Supplier