Public Meetings
The City of Champaign invites residents to attend one of two public meetings on Municipal Electricity Aggregation.
- Tuesday, April 17, 2012, at 10 a.m.
- Thursday, April 19, 2012, at 7 p.m.
These meetings will be held at the Champaign City Building, located at 102 North Neil, Champaign, in Council Chambers on the first floor.
Click here to see the News Release.
Plan of Operation and Governance (draft)
Fact Sheet
What is Municipal Electricity Aggregation?
Municipal Electricity Aggregation (MEA) is an opt out program that allows local governments the option to bundle together, or aggregate, residential and small commercial retail electricity accounts and seek bids for a cheaper, and possibly cleaner, source of power. Right now, these Ameren customers obtain power at a fixed rate, regulated and set annually by the Illinois Commerce Commission. In contrast, large industrial and commercial customers can utilize the open market to obtain a lower rate and save money on their electricity bills. By bundling residential and small commercial accounts, municipalities can achieve the same type of savings.
What Are the Benefits of MEA?
The most important benefit to MEA is the opportunity for Champaign residents and small businesses to save money on their electric bills. Individual accounts can expect to save between 5 and 10% off their bills. Collectively, Champaign residents and small businesses could save up to $4 million annually. There are also opportunities for helping the environment by requiring renewable energy as part or all of the electricity supply or by funding energy efficiency programs.
How Does MEA Work?
Municipal Electricity Aggregation was made available by new legislation in 2010. First, the City must place a referendum on the March 2012 ballot asking voters to give the City authority to create an aggregation program. Once the referendum is approved, the City will, with public input, create an aggregation plan that includes procedures and goals for the program. The City will then seek bids from Retail Energy Suppliers to obtain competitive electricity rates for participants. If no bids are acceptable, there is no obligation to accept them. A resident or small business can choose to opt out of the City’s program, so there is little risk that your electric rate will increase and no obligation to participate.
What are the impacts?
The impact of MEA is primarily savings. Participants will not see a change in their Ameren bill other than a reduction on the energy charge. They will continue to receive a single bill, make one payment, and continue to receive all other services through Ameren. However, if customers are already purchasing their power from a company other than Ameren, they will be ineligible to take advantage of the City’s aggregation rate. A resident or small business can join the City’s program at any time, but early termination of a contract with another energy supplier could result in fees. Check the terms and condition of the contract with the retail energy supplier.
FAQs
Q: When will aggregation go into effect?
A: Before the City can begin implementing the program, voters must approve a referendum on March 20, 2012 to allow municipal electricity aggregation. If the referendum passes, the program will likely begin July or August 2012.
Q: What component of my electrical bill will aggregation effect?
A: Aggregation addresses 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 concerns 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.
Q: When will I start seeing a reduction in my electricity bill?
A: The earliest participants would receive bills with the new rates is July or August 2012.
Q: I have received mailings from retail electric suppliers offering lower electricity rates now. What should I do?
A: The earliest the City’s aggregation program is likely to begin is summer 2012. Consumers who decide to switch to a retail electric supplier before the City’s program is available should consider several aspects of the retail supplier’s offer.
What to look for in the offer:
1) Length of contract
- Many retail suppliers require a minimum 1-year contract, which would prevent a customer from getting the City’s aggregation rate until the contract ends.
2) Termination fees
- Look at the cost of early termination. Some companies charge fees and others do not.
3) 1 bill or 2?
- Under the City’s aggregation program, participants will still receive 1 monthly bill from Ameren and make 1 payment to Ameren. Some retail suppliers do not have this provision meaning customers may receive their regular bill from Ameren and a separate bill from the retail supplier.
Q: Do I have to participate in the City’s aggregation program if I do not want to?
A: No. Residents and small businesses are free to opt out. Opt out notices will be provided through the mail before the program begins.
Q: Who will I call if I have problems with my power or my bill?
A: All service and billing questions will continue to be directed to Ameren.
Q: How can I get more information about Champaign’s aggregation program?
A: Informational brochures and public information sessions are forthcoming. The City’s website will feature all materials related to the referendum and the aggregation program as soon as they become available.
Q: If I heat my home with electricity, can I save money with electricity aggregation?
A: Probably not. Residents who heat their homes with electricity already have a discounted rate structure, and electricity aggregation may not save them money on their electric bill. If you are considering switching, it is important that you evaluate your annual usage and the rate being offered through aggregation in order to determine what electric supply option best suits your needs. For more information, go to the Illinois Commerce Commission web site, Plug In Illinois and click on “Utility Space Heating Rate.”
Q: How can I get more information about electricity aggregation in general?
A: Contact the City of Champaign Public Works Department at 403-4700. The following websites also offer information and resources:
