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Tuesday, December 11, 2012

FOR IMMEDIATE RELEASE

Selected Aggregation Electricity Supply Rate 26.8 Percent Lower Than Current Ameren Rate

The City today selected an energy supplier as part of the recently approved electricity aggregation program that is expected to save residents and small businesses an average of almost 27% percent per month on electricity bills.

Homefield Energy emerged as the lowest of three bidders Tuesday afternoon for the right to provide electricity to local residents who do not decide to opt out of the local aggregation program. Homefield’s price of 4.099 cents per kilowatt-hour for a 17-month term was .00111 lower than the next lowest bid and is roughly 26.8% lower than the current typical Ameren base price.

The low price allowed the City to secure a significant amount of the electricity to be provided from renewable sources. This will set the stage for the City to be deemed a “Green Power Community” by the Environmental Protection Agency and will make us much more competitive for future EPA grant offerings.

Individual savings per household will depend on actual usage. The 17-month term will allow the city to match up and bid with communities that started the program earlier once the term expires in an effort to secure lower rates.

On July 30th 2012 the Decatur City Council passed a resolution placing a referendum question on the November 6, 2012 ballot, which, if approved, would allow the City of Decatur to undertake the process of Municipal Electric Aggregation. Voters passed the referendum by 57% allowing the City to arrange for the supply of electricity for residential and small business customers in conjunction with other communities. Under the program, all eligible customers become part of the program unless they elect to opt out.

Residents who choose to remain in the program will see minimal changes to their power bill with one exception – a lower price. Ameren will continue to bill customers and residents who participate in LIHEAP and PIPP energy assistance programs will continue to receive assistance with energy bills from the state.

“Our goal as a city council in moving forward with this process was to secure lower electricity rates for the residents of Decatur,” said Mayor Mike McElroy. “The community in conjunction with other Illinois cities and towns was able to negotiate a very aggressive price for electricity that will allow residents to save money with no additional effort if they choose to stay in the program.”

Between December 18, 2012 and January 4, 2013 residents should receive two letters from the City, which will include the winning offer rate and the approximate percentage of savings as compared to default rates offered by Ameren. Residents are encouraged to compare this rate to the current Ameren rate as it relates to individual usage to gauge the savings that could be realized through the aggregation program.

Residents will need to return one of the two letters if they don’t want to participate or opt out if desired through other yet-to-be-determined means that could include email and or telephone. There is no penalty for not enrolling.

New electric supply rates will begin in January or February (dependent on individual meter read dates) and will be reflected on following month's Ameren bills.

Contact Billy Tyus at 217-424-2727 or Vasudha Pinnamaraju at 217-424-2778 for more information.