Du Quoin and Pinckneyville to Vote on Electric Aggregation

</element><element id="paragraph-1" type="body"><![CDATA[Du Quoin and Pinckneyville voters will decide on March 20 whether to enter into a program in which bids are sought for cheaper electricity rates. Both city councils voted on Dec. 27 to place this question on the ballot: "Shall the City of Du Quoin (or Pinckneyville) have the authority to arrange for the supply of electricity for its residential and small commercial retail customers who have not opted out of such a program?"

Under a new state law, municipalities are now qualified to potentially receive proposals from electric suppliers on behalf of their residents and small businesses under a single contract. If the rates are lower than Ameren's, residential and small business accounts within Du Quoin and Pinckneyville's city limits not already choosing power from an alternative supplier would acquire electricity from the new supplier, saving residents and businesses money on the power supply portion of their monthly electric bills. This process is called municipal electric aggregation.

If voters give the go-ahead, the cities of Du Quoin and Pinckneyville would have the authority to aggregate or bundle the electric accounts of residents and small businesses and to seek bids for competitive electricity rates. It is estimated that program participants will be able to potentially realize 20% savings on their electric bills. If prices from electric supply proposals are higher than Ameren rates, the cities would not accept any proposals.

Currently, residential and small business electric rates are fixed annually by the Illinois Commerce Commission. For a number of years, large industrial and commercial customers have had the ability to shop for lower rates in the market place. With municipal electric aggregation, residents and small businesses can now do the same.

If the referendum is approved, Du Quoin and Pinckneyville will hold at least two public hearings to give residents and small businesses the opportunity to provide input on the electrical aggregation plan and proposal process prior to requesting electric supply proposals for the cities' electric supply on the open market.

Once the measure is approved, residents and small businesses would automatically be included in the city's program unless they choose to "opt out". Before such a program takes effect, the city would mail out notices to all eligible residents and small businesses notifying them they would soon have a new electric supplier, unless they opt-out. Unlike in many cities, Du Quoin and Pinckneyville intend to allow residents or small businesses to opt out of the program at any time with no penalty. Residents or small businesses that have already signed a contract with an alternate retail electric supplier would automatically be excluded from the city's program, though could opt to join later on after their contract expires.

If aggregation occurs, nothing will change except that residential and small businesses will be enjoying lower electric rates. Participants would continue to receive only one electric bill per month from Ameren, and in the case of storm damage and isolated power outages, Ameren will continue to respond to any and all power outage emergencies.

If the referendum passes, the electric aggregation plan and solicitation process is approved, the first solicitation of proposals would take place in early to mid-summer, 2012, at the very earliest. Potential savings from accepting proposals for power supply on the open market would likely not be seen on electric bills until late summer or fall, 2012.

All questions regarding the municipal electric aggregation can be directed to Nick Hill at Select Energy Partners, nhill@selectenergypartners.com, 618-357-1198. Select Energy Partners, LLC is a leading energy consulting firm based in Chicago, IL. Select Energy conducts thorough and transparent energy procurement request for proposals (RFPs) on clients' behalf to ensure the most competitive pricing, terms and contracting.