The City of Salem has entered into a new 22-month electric aggregation contract. It will result in a big jump in electric rates for participating residents and small businesses, but will still be lower than purchasing electricity directly through Ameren.
The low bidder for the aggregation was Constellation NewEnergy at a cost of .1189 cents per kilowatt hour. That compares to .0429 on the aggregation contract that expires at the end of the year. Ameren’s current price through May of next year is .12236 cents.
Goode Energy says for an average customer who uses 600 kilowatt hours of electricity a month, will see their bills go up $46 a month over the expiring aggregation contract.
If the rate with Ameren continues to increase, the residents and small businesses will have rate protection through the contract. Residents and small businesses concerned about a decrease in Ameren rates could simply opt-out of the aggregation program. If residents decide to opt out of the program and return to Ameren, they will be forced to stay with Ameren for a minimum of one (1) year.
You may have received a notice from Ameren stating that your accounts will return to Ameren, but only for 2 billing cycles. In a few weeks, residents and small businesses will receive the opt-out letter from the new supplier Constellation NewEnergy. If residents and small businesses wish to continue participating in the program, they simply do nothing. They are automatically enrolled when the program restarts with February’s billing cycle. Lastly, Ameren will send a third letter stating you have chosen Constellation NewEnergy, and residents and small businesses have 10 days to opt out. Unless account holders opt out of the aggregation program they are automatically enrolled.
Since the inception of the program over a decade ago, every community has realized savings for their residents over the length of the program. Questions or concerns about the municipal aggregation program can be addressed via email at gecsi@goodenergy.com or by phone at 844-686-4244.
