The Commercial-News, Danville, IL

Local News

May 15, 2013

Rate higher than county’s

Homefield wins electricity bid

DANVILLE — Bid day for the electrical aggregation program for the city resulted in a higher rate than the county’s for electrical service through Integrys, but a lower rate than what Ameren charges residents.

Mayor Scott Eisenhauer sent out an e-mail Wednesday afternoon, after the 11 a.m. Wednesday bidding.

Eisenhauer reported the energy supply bid process resulted in the lowest bidder of Homefield Energy at a rate of 4.333 cents per kilowatt hour for a term of 22 months.

This rate is slightly higher than what Integrys is providing through the county program at 4.26 cents per kilowatt hour, but lower than what Ameren charges customers — 5.1 cents per kilowatt hour — providing for a savings for the average household of between 10 percent to 15 percent.

The rate applies to Danville customers, in addition to those in Tilton, Hoopeston and other communities that agreed to work with consultant Good Energy.

Homefield Energy is headquartered in Collinsville and is the residential electric supply option from Ameren Energy Marketing, a retail electric supplier that operates independently from Ameren Illinois Co. Ameren Energy Marketing is a subsidiary of Ameren Corp.

Good Energy officials said Danville went out for bid with 37 other communities, representing 105,000 households. There were no restrictions on the energy, such as its source having to be green energy.

“Certainly I was disappointed that the rate was not lower, however, if you have studied the electricity market lately you recognize the trend is toward higher costs rather than lower, so the results were not surprising,” Eisenhauer said through an e-mail.

“My biggest concern was being able to provide a rate lower than what Ameren is currently charging, and providing our residents with savings on their electrical supply, which, with this rate, will produce supply bills 10 percent to 15 percent less expensive. Most importantly, our residents now have a comparison rate so when they are approached by other companies they know the price to beat is ($)0.04333 for the next 22 months,” he said.

“At the end of the process, I am very happy we will be able to save our residents money, and appreciate Good Energy for assisting us through the bid procedure,” Eisenhauer added.

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