City Council Selects Broker for Electric Aggregation

When the DeWitt County board voted earlier this year to place an electric aggregation referendum on the April 9 ballot, they did so with the intention of allowing residents to have the power to lower their electricity bills. If the referendums pass, municipalities will be able to employ consulting firms to negotiate lower rates from electricity suppliers on their behalf. The Clinton City Council voted to contract Good Energy as the consulting firm on Monday.

When a municipality, or a group of municipalities, join together to save money on electricity rates for their residents, it is called municipal aggregation. Since electric rates are generally less for large groups, aggregation gives municipalities the ability to offer residents significantly reduced electricity rates. Third party firms, like Good Energy, offer municipalities their experience in, and understanding of, negotiating aggregation contracts. Third parties ensure that municipalities receive the lowest rates available, while also maintaining the low rates in each annual auction. Two firms made presentations to the Clinton City Council, but Good Energy’s proposal was stronger, and thus the council voted to contract them. The residents of Clinton, like many other Illinois municipalities in the past year, will have the chance to vote for monthly electric savings on April 9.

Aggregation only applies to Clinton residents who are current Ameren customers. The savings will only affect the usage charges. It will still be the responsibility of Ameren to maintain utility wires, transformers, and other related equipment. Good Energy CEO Maximilian Hoover is excited about the potential savings for Clinton residents, hoping to be able to lower their monthly expenses after the vote.

For more information on municipal aggregation, click here. For the full article, see below.