Galesburg goes green on aggregated electric supply
January 25, 2013 05:03 PM
The City Council, at its January 22 meeting, chose Homefield Energy as the supplier for the residential and small commercial aggregation program. The approved contract came after a lengthy RFP process conducted by DaCott Energy Services, Inc., the city's consultant, and provides for 100% renewable energy to be purchased at a discounted rate.
"This initiative is important in not only promoting desired savings on residents' electric bills but moreover it is also significant in utilizing renewable energies which encourage a cleaner and healthier environment for all of us as well as promoting growth in the renewable energy industry. This is an industry that our region is well suited for and we hope to continue to develop where more investment opportunities and jobs will be created for our communities," stated Mayor Sal Garza.
Homefield Energy will be providing electricity at a fixed rate of $.04345 per Kilowatt-hour for 24 months beginning in March, 2013. The electricity provided by Homefield Energy will be 100% from renewable sources, allowing Galesburg residents to play a part in reducing carbon emissions. This renewable power will come from already existing sources that will now be dedicated to serving the electricity demand for the residents of Galesburg.
The price offered will save the average resident or small commercial customer approximately $146 per year compared to Ameren's currently posted prices. If Ameren's prices for electricity fall below the $.04345 per Kilowatt-hour, Homefield Energy will assist customers in returning to Ameren for electric supply at no charge to the customer, allowing the residents to always have access to the lowest option available.
The city will not be selling or generating the energy nor is it required to make any investments in generation facilities to meet this demand. Homefield Energy will manage the process of acquiring and selling the renewable energy to the residents.
Residents and small commercial businesses will soon be receiving a letter from Homefield Energy and the city detailing the terms of the supply arrangement. Users will have 21-day window to "opt-out" of the program, if they choose, and stay with Ameren for electric supply or negotiate their own contract with another supplier. However, energy aggregation benefits everyone by using the collective buying power to leverage a negotiated lower price per Kilowatt hour.
As stated, users will have the freedom to "opt out." There is no charge for doing so and it is as easy as following the instructions in the notice provided. Enrollment in the aggregation program is automatic and users need do nothing more to participate. Once the enrollment process is complete, residential and small commercial business users will receive a notice from Ameren showing that the electric supplier has changed to Homefield Energy.
Other energy suppliers may solicit Galesburg residents and small commercial businesses to sign with their company. Caution is recommended as these suppliers are not the "supplier of choice" and may not be able to provide the same rates or assurances as Homefield Energy.
No matter who supplies the electricity, Ameren remains the delivery company. All Galesburg users would continue to contact Ameren in the case of outages, services calls and emergencies.
Questions about this program can be directed to the City Manager's office at 309/345-3628.