The City of Bloomington and Town of Normal recently approved Constellation NewEnergy, Inc. to serve as the new Electric Aggregation program supplier following a competitive bid process. This supplier, which will replace Homefield Energy, was chosen as it provided the best overall value.
The current agreement expires in June 2022. The contract with Constellation NewEnergy, Inc. locks in a three-year fixed rate of $0.07859 per kilowatt hour (kWh). The new rate will be effective July 2022. The new contract also includes a “green” energy option at a rate of Enhanced Renewable Energy Certificates (REC): $0.08324 per kWh.
These rates are higher than current rates ($ 0.0424 for residential service and $ 0.0433 for green energy per kWh) primarily due to nationwide inflation causing substantial increases in goods and services, including utility costs. However, the rates are below the recently-released Ameren supply rate of $0.0946 for June through September. From October 2022 through May 2023, the Ameren Fall rate will be $0.11502.
The City of Bloomington and Town of Normal belong to a consortium (CIMA - Central Illinois Municipal Aggregation) of municipalities, school districts, small businesses, and others aggregating more than 60,000 electric accounts to purchase power at a reduced rate.
"With energy prices on the rise this agreement gives residents a choice,” says Bloomington City Manager Tim Gleason. "It's an opportunity to lock in a low fixed rate for the next three years.”
Constellation NewEnergy, Inc was chosen in a competitive process as it provided the best overall value for the community. The program offers residents served by Ameren to secure pricing for the duration of the contract period (July 2022-June 2025).
“The Town of Normal does not benefit from this program. The program is purely for residents’ use and access,” explains Town of Normal City Manager Pamela Reece. “Electric aggregation offers residents an option to save money and provides a predictable rate for budgeting purposes.”
Participation in the Electric Aggregation program is not required. Residential rate customers will have two opportunities to “opt out” of the program. Constellation NewEnergy, Inc and Ameren will each contact eligible customers by mail to offer the opportunity to opt-out of aggregation at no charge.
Residents who opt out of the program will remain on their current supply choice, whether that is Ameren Illinois Basic Generation Service (BSG), Power Smart Pricing, or retail electric supplier (RES) of their choosing. Opt-out letters will be mailed to all eligible residents in the coming weeks.
Residents with questions about this program can call 833-358-0518 or visit the Constellation customer service website.