Galesburg Approves New Electricity Contract with Constellation NewEnergy, Inc.

By: Forgottonia Times™ Report

During a Galesburg city council meeting, officials approved a new electricity supply agreement with Constellation NewEnergy, Inc., starting July 2024. This follows the previous contract with Homefield Energy, which has been in effect since 2021. The new rates are $0.08677 per kWh for standard power and $0.08989 per kWh for 100% renewable power, compared to the prior rate of $0.05499 per kWh offered by Homefield Energy.

Municipal energy aggregation is a system that allows local governments to negotiate electricity rates on behalf of residents and small businesses. By consolidating the energy requirements of these groups, the municipality can secure more favorable rates from suppliers. This program aims to lower electricity costs and provide price stability for the community, helping residents manage their energy expenses more effectively.

Under the new agreement, residents and small businesses will be automatically enrolled unless they choose to opt out. The previous deal saved residents significant amounts over its term, and despite the increase in rates, the new contract aims to offer stable pricing amidst rising energy costs. Residents can also opt for the 100% renewable power option by contacting Constellation directly. The community needs to be aware that only Constellation is authorized under this program, and they will not conduct door-to-door or phone solicitations. Ameren Illinois will continue managing electricity delivery, maintenance, and emergency services, with bills reflecting the new rates in August 2024.

This new energy aggregation agreement is designed to provide Galesburg residents with stable and competitive electricity rates, addressing the rising energy prices while maintaining structured cost management. For more details, residents are encouraged to review information from Constellation or visit the city's website.