Municipal Electric Aggregation

The City of Champaign and Integrys Energy Services are warning Champaign residents and small business owners about aggressive and misleading phone solicitations being made by Liberty Power, and alternate residential supplier.  Liberty Power is NOT the City’s vendor for the Municipal Electric Aggregation program.  Any claims made by their representatives that they are confirming enrollment into the City’s program, that time to act is limited, and that Ameren account information must be provided to enroll in the program are false and should be disregarded.  Neither the City nor Integrys will contact MEA program participants by telephone or in person.  Citizens should NEVER compromise their security by providing Ameren account information to anyone.  You do not need to provide this information to enroll in the City’s MEA program; neither the City nor Integrys will ask you for it.

Complaints about Liberty Power may be filed with the Illinois Commerce Commission Consumer Services Division by phone (800) 524-0795 or online at http://www.icc.illinois.gov/consumer/complaint  or with the Illinois Attorney General’s Office at (800) 243-0618 or http://www.illinoisattorneygeneral.gov/consumers/filecomplaint.html. You may also call the Champaign Public Works Department at (217) 403-4700 or Integrys customer service at (888) 491-1362 to verify the legitimacy of any contacts you receive regarding the City’s MEA program.

What is Municipal Electric Aggregation?

A program that saves Champaign residents and small businesses money on their electric bills.

It is made possible by state legislation (20 ILCS 3855/1-92) allowing municipalities to “aggregate” (or bundle) all eligible electric accounts together to get one great price for the whole community.

In order to operate an opt-out program, the City had to first get approval from voters in a referendum. The referendum was approved March 20, 2012.

Why aggregate?

Have you gotten fliers in the mail from Retail Electric Suppliers (RES) claiming they can save you money on your electric bill if you switch from Ameren?

The fact is, because Illinois is now a deregulated energy state, they probably can.

Large companies and local governments that use a lot of electricity have been purchasing it from Retail Electric Suppliers for several years. The City of Champaign saves thousands of dollars each year by purchasing electricity on the open market rather than from Ameren.

However, few residents and small businesses take advantage of deregulation. The reasons are not entirely clear, but many folks may fear the fine print contained in the offers they have received, while others may worry about early termination fees if they move before their contract ends. There are a variety of possible explanations.

That’s why the City has established an electric aggregation program. Instead of requiring residents to evaluate the various offers from Retail Electric Suppliers on their own, the City of Champaign is doing it for you. We have grouped all the eligible accounts together, and are serving as a go-between to negotiate on behalf of residents and small businesses for the best rate possible.

What’s in it for the City?

The City’s electric aggregation program is revenue neutral, meaning the City will only recoup the costs to start and manage the program and will not use this as a revenue source. The estimated cost to start the program and manage it for two years is $100,000.

The City is offering municipal electric aggregation as a service to its residents and small businesses. There is no catch. You save money. And if you don’t want to participate, you are welcome to opt-out, it’s really that simple.

How does it work?

In April 2012, the City sought bids for electric supply from Retail Electric Suppliers.

On May 22, 2012, the City accepted the bid from Integrys which was lower than the default Ameren rate.

In July 2012, the City, in conjunction with Integrys, mailed opt-out letters to all eligible residents and small businesses.  In September 2012, a second batch of opt-out letters were mailed to all eligible residential and small commercial accounts that have been initiated with Ameren since the first opt-out letters were mailed.  Anyone who does not want to participate can opt-out of the program with no penalty whatsoever.

At the end of the opt-out period, all eligible residents and small businesses that have not opted-out will be switched over to the City’s new aggregation program electric rate.

Ameren will continue distributing the power and sending you your electric bill. There will be no change to your service and no one will come to your home to do anything.

What Are the Benefits of Municipal Electric Aggregation (MEA)?

The most important MEA benefit is the opportunity for Champaign residents and small businesses to save money on their electric bills.

There are also opportunities for helping the environment as the City purchased 100% renewable energy for its electric aggregation program.

Another benefit is that by negotiating on behalf of all residents and small businesses, the City can obtain favorable contract provisions that individual residents cannot achieve on their own, i.e. no switching, enrollment, or early termination fees.

What component of my electricity bill will aggregation affect?

Aggregation affects only one of the three components of an electricity bill. The three components are supply (where the power comes from), transmission (getting the supply from its point of origin or from the high voltage grid), and distribution (getting the electricity from the substation to the consumer’s meter).  Aggregation impacts only the supply component, which is typically 60 to 70% of the electricity bill.  The transmission and distribution parts of the bill will be unaffected by aggregation.

What is the Ameren “default” rate?

This is an electricity rate that is established each year (June to May) by the ICC and the Illinois Power Agency. If an electricity user in the Ameren service area does not select an alternative retail electricity supplier or does not belong to an MEA, Ameren will provide electricity to that user at the fixed default rate. The Ameren default rate is $0.06169 (June to September) and $0.05456 (October to May).

Is it possible the City’s aggregation rate will be higher than the Ameren default rate?

No. Because Ameren’s default rate is set by the Illinois Commerce Commission, Ameren cannot arbitrarily raise or lower the rate. The City has structured its electric aggregation Plan of Operation and Governance so that if the Ameren default rate ever drops below the City’s rate, the Retail Electric Supplier must either match that rate, or return all aggregation members to the Ameren default rate at no cost.

What is the Plan of Operation and Governance?

To establish a Municipal Electric Aggregation Program, the City was required by State Statute to develop and adopt a Plan of Operation and Governance. The Plan defines how the City will operate its aggregation program. The Plan of Operation and Governance was reviewed and adopted by City Council.

If I join the City’s electric aggregation program, who will deliver my power, read my meter, and respond to emergencies, such as power outages?

Under the City’s aggregation program, participants will still receive one monthly bill from Ameren and make one payment to Ameren.  Ameren will answer questions concerning your bill and respond to emergencies.

Can I still have my payment automatically deducted from my checking account?

Yes, your bill payment options will not change.

Can I stay on budget billing?

Yes, your budget billing will not be affected by participation in this program.

If I heat my home with electricity, can I save money with electric aggregation?

Yes, customers on Ameren’s electric space heat program will also receive the $0.0419 per kilowatt hour rate from Integrys the same as other MEA program customers.  Those customers for whom savings under the MEA rate are guaranteed were mailed opt-out letters in September 2012.