|Collinsville's Electricity Aggregation Referendum -- VOTE November 6th|
|Written by Julie Jackson|
|Wednesday, 12 September 2012 11:27|
On August 10, 2009, Governor Quinn signed into law an amendment to the Illinois Power Agency Act to allow municipalities to arrange for the provision of electricity to residential and small commercial retail customers by alternative electric suppliers (instead of Ameren Illinois).
Under the new law, a municipality may seek bids for the provision of aggregate electricity supply services to residential and small commercial customers in order to secure a rate lower than the standard rate offered by Ameren Illinois. The legislation contemplates an "opt-out" program in which all residential and small commercial retail customers would be switched automatically to the alternative supplier selected by the City, unless a customer affirmatively opts out of the program and continues service through Ameren Illinois or another provider.
In order to seek competitive bids, the City must first gain the approval of a majority of residents through a referendum. The City Council has approved the placement of this referendum question on the November 6, 2012 General Election ballot. The question, as it will appear on the ballot, asks:
"Shall the City of Collinsville have the authority to arrange for the supply of electricity for its residential and small commercial retail customers who have not opted out of such program?"
Essentially, voters will be asked if the City should be given the authority to seek competitive pricing bids for electricity services and to enter into a single contract that would include residents and small businesses if lower electric bills can be realized.
The City is a participant in the Good Energy Central and Southern Illinois Buying Group 2 (GECSI2), an informal aggregation of municipalities and counties across Central and Southern Illinois consisting of 150,000 households working together to secure electricity cost savings. A full list of the other participants will be published on this site after September 1st.
If the referendum is approved in November, bids will be solicited for the GECSI2 Buying Group's aggregated electricity load for one, two and three-year terms. The bids will be compared to Ameren Illinois' current electricity supply rates. The City only intends to approve a bid that will result in lower electricity prices than the current Ameren Illinois rates.
On May 8th, 2012, Good Energy's first buying group (GECSI1), including among many others Alton, Godfrey, Bethalto, Glen Carbon and Shiloh, secured rates of $0.0408 per kWh for 100% renewable and $0.0401 per kWh for traditional power over a 24 month term, a saving of about 27% on electricity supply.
Approval of the referendum does not obligate the City to implement an opt-out electricity aggregation program. However if a program is implemented, eligible residential and small commercial retail customer accounts will automatically be moved to the new supplier. Customers who prefer to remain with Ameren Illinois may opt-out of having their account transferred to the selected, alternate supplier. Information on how to opt out will be provided in advance of the change to all residents and commercial retail customers.
Customers who receive Ameren Illinois' Utility Space Heating Rate or who are enrolled in the Power Smart Pricing program are ineligible for participation in the City's opt-out electricity aggregation program. These accounts WILL NOT be automatically switched to an alternative supplier.
For further information call the "Good Energy CSI2" Hotline (618-465-6030) or visit Good Energy's dedicated website at www.munienergychoice.com. Visitors to Good Energy's website may watch a promotional video and TV interviews, listen to radio interviews, review FAQs, view copies of mailings, follow along with updates and much more.