Electric Supply Update
ELECTRIC AGGREGATION UPDATE June 1, 2022 – From Good Energy, L.P. who represents Morton and other Central Illinois communities with their municipal aggregation programs.
Spiking prices and supply shortages prevented us from securing a contract for our aggregation programs in your community’s program. Participants will be returned to Ameren Illinois supply effective with the June billing cycles. Customers do not need to take any action for their accounts transition to utility supply. Ameren has been sending confirmation notices to account holders.
Energy markets have experienced a significant price spike through the Winter and Spring, and these skyrocketing prices are reflected in Ameren’s recently announced utility rates for residential and small business customers. The annual average for Ameren’s current residential rates is approximately 12 cents per kwh, and represents a dramatic increase for all electric consumers in the Ameren service area.
Alternative suppliers such as Homefield Energy, who has been the aggregation program’s supplier since its inception, are not offering prices that are competitive with the utility’s published rates, despite the significant increase in prices. This means that customers returning to Ameren’s supply will most likely remain with the utility until next May due to the utility rule requiring such customers to remain on utility supply for 12 consecutive months.
While these market conditions are unprecedented, we do not expect the current pricing levels or generation supply shortages to endure for the long term. We continue to communicate with suppliers about future energy supply for our purchasing group. We fully expect to resume the program in May 2023, and will update you as we make progress in following market developments.