ENERGY BUYING GROUP, NOW LIKELY SINGLE LARGEST IN THE U.S., TO SAVE CENTRAL AND SOUTHERN ILLINOIS CONSUMERS $46 MILLION OVER 17 MONTHS

FOR IMMEDIATE RELEASE

 Charles de Casteja

(212) 691-9467/ (646) 286-6746

charles@goodenergy.com 

Residents plug into Savings

 

CENTRAL/SOUTHERN ILLINOIS (December 11, 2012) – More than 230,000 households in 18 central and southern Illinois counties can expect to see their electric bills drop by 25 percent or more, beginning in spring of 2013.

Bids returned Tuesday will provide residents a discount on the rates they pay for electricity, amounting to about $150 to $170 to each household annually. The process is a result of the municipal electric aggregation referenda approved by voters in November.

Good Energy was secured by the individual communities, including Normal, Decatur, Effingham, Charleston, Centralia, Edwardsville, Belleville, Granite City, O’Fallon – and more than 40 other communities, representing about 230,000 households – to seek bids on their behalf for electricity on the open market. Good Energy now represents about 520,000 households in Illinois.

"This likely is the largest residential purchasing group in the country and a testimonial to buying in bulk," says Good Energy Managing Partner Charles de Casteja. "Furthermore, the potential for greater purchasing power, extraordinary contract terms, and leveraged representation at the state level with all affiliated agencies, is a win-win for single customers in these Good Energy communities."

That means savings.

By bundling residential and small business electric consumers, Good Energy was able to achieve a substantial savings by purchasing energy supply from the open market. In sum, municipal aggregation creates bargaining power putting smaller energy consumers on equal footing with larger users and it stimulates competition.

Compared with the current Ameren rate of $0.054 kWh, the low bid received Tuesday means households will save between $150 and $170 per year on electricity, and many may save even more. Residents should expect to see the savings on their utility bills beginning in March. 

Good Energy selected Collinsville-based Homefield Energy as the low bidder after a competitive bid with five other leading alternative retail electric suppliers Tuesday. Homefield Energy will deliver electricity at a contract rates of $0.03909 per kilowatt hour (kWh) – $0.04099 cents – during the span of the 17 month contract. The high bid was $0.044 – 4.4 cents.

“Consumers are harnessing the benefits of deregulation in Illinois through referendum statewide that allow competitive bidding processes,” de Casteja said.

Good Energy originally had projected savings of between 20 to 25 percent compared to current rates. The actual savings based on Tuesday’s bids will be 25 to 30 percent – depending on usage. Communities also were able to select from a renewable energy provider.

A little more than half of the communities in the recent purchasing group chose to purchase 100 percent renewable electric production – all green.

Tuesday’s buying group joins nearly 300,000 Illinois households that already are seeing the benefits of collective buying power of between 25 and 33 percent, or about $20 per month.

The communities are as follows: Albers, Arcola, Ashmore, Bartonville, Beckemeyer, Belleville, Camargo, Centralia, Cerro Gordo, Charleston, City of Madison, City of Venice, unincorporated Champaign County, unincorporated Coles County, unincorporated Crawford County, Decatur, East Alton, Edwardsville, Effingham, Forsyth, Granite City, Hartford, Hopewell, Humboldt, Hutsonville, Jerseyville, Lerna, Lovington, Mahomet, Mason, Mattoon, Neoga, Normal, Oakland, Oblong, O'Fallon, Ogden, Olney, Palestine, Paris, Pittsfield, unincorporated Richland County, Robinson, Roxana, Salem, Savoy, South Roxana, Sparland, Teutopolis, Troy, Tuscola, Village of Hamel, Village of Maryville, Village of Pontoon Beach and Wood River.

More than $150 million over two years: That’s the amount of combined savings electric consumers statewide participating in Good Energy’s municipal electric aggregation groups will reap over a two-year span.

“Since the middle of June, citizens of the city of Peoria have been saving between 20 and 30 percent on their electricity bills,” says Chris Setti, Peoria’s Assistant City Manager. The City of Peoria in central Illinois was in the first buying group. “It’s a great opportunity for a public body to be able to offer this to our citizens and constituents and keep more wealth in the community. The electricity market is a very confusing place and we couldn’t have done this on our own.”

The Citizens Utility Board, a consumer watchdog/ advocacy group, says community electric aggregation is a good option to have.

Communities statewide first chose a consultant and approved a referendum to be placed on the ballot, followed by residents approving the referendum. The consultant and municipality then developed an aggregation plan of operation and governance, hosted public hearings for transparency, followed by the bidding process with suppliers. There still are opportunities for municipalities who did not join the first or second group to join Good Energy’s third round buying group for an April 2013 referendum.

What now?

• Residents between Dec. 18 and Jan. 4 will receive two letters that will include the winning offer rate and percentage of savings with additional details for the program. Also at this time, residents can choose NOT to enroll (opt-out) with no penalty.   
• If individuals decide to opt out after becoming part of the aggregate, they still can with a small termination fee.
• Residents who do nothing automatically are enrolled and new electric supply rates will begin in early 2013.
• Residents who opt out will return to the rates offered by the utility with no additional charges.

All residents and small commercial accounts will continue to receive one bill.

History of deregulation

With the passage of the Illinois Power Agency Act in Illinois in 2007, municipal electric aggregation became available. This allowed local authorities to negotiate electric power supply for smaller consumers.

In 2009, the governor signed a public act that allows communities the authority to bargain on behalf of their residents for cheaper electricity. The purpose of deregulating electricity markets was to increase competition, lower costs and give residents the power to choose. Governments and large business in Illinois already do this.

Background

Good Energy is an energy management consultant firm that prepares, negotiates and purchases utility supply contracts for consumers and businesses in deregulated markets. It works in 22 deregulated states. For a complete list of Good Energy OPT-OUT Buying Group Municipalities visit: munienergychoice.com.