On October 1 Ameren IL announced rate increases to their default supply rates for customers who have not chosen a competitive supplier. The October adjustment of around 13% comes on the heels of an approximate 30% rate adjustment just 4 months earlier that took effect in June of this year. The electricity “price to compare” includes all components of the price of electricity supply, including transmission and other ancillaries.
Cities such as Mt. Vernon, Nashville, Lawrenceville and neighboring villages in Jefferson, Washington, Marion and Lawrence Counties, all totaling 58 communities, are part of a coordinated aggregate group of communities represented by Affordable Gas & Electric, a Mt. Vernon based aggregator and broker of electricity and natural gas. Collectively, the residents of these communities have enjoyed significant discounts to Ameren’s default rates since aggregation was approved by the majority of voters in 2012 and 2013.
Residents in the collective aggregate of communities have fixed rates that are guaranteed through December of 2016 and for many, those rates are guaranteed through December 2017. The result is a current discount to Ameren’s default electric supply rates of between 14%-20%.
Affordable Gas & Electric’s (AGE) Managing Partner, Jeff Haarmann, explains “We took an approach early this Spring, based on some invaluable market research, to recommend locking in long-term rates ahead of what we felt was an inevitable spike in Ameren’s supply rates. The consensus of the Mayors, Council and Village Boards was to secure rates prior to Ameren’s June 1 rate change announcement and to do so for an extended term to protect residents from potential rate adjustments in October 2015, June 2016 and October 2016. That move is proving to provide residents of our communities with significant savings now and into the upcoming years.”
Upwards of 85% to 90% of all households of these communities are participating in the aggregate electricity rates. As a result of the discount to Ameren’s rates, it is estimated that for the 12 months from October 2015 to October 2016, over $2.5 million dollars will stay in the combined pockets of the local residents.