In April, the City of Galesburg announced details of its energy aggregation supply arrangement, securing a fixed rate of $0.1089/kWh for residents from July 2025 through June 2026. At that time, Ameren’s summer rates had not yet been released. Now, with Ameren’s default energy rate set at $0.12539/kWh, effective June 2025, the collective buying power of aggregation has proven to yield a lower rate for citizens.
While participation in municipal aggregation remains optional, Galesburg residents who remain in the municipal energy aggregation program will enjoy a rate that is approximately 13% lower than Ameren’s default utility rate for the summer months (June through September 2025). This announcement is consistent with the demonstrated prior success of Galesburg’s residential energy aggregation program. The previous contract, which ran from July 2021 to May 2024, saved Galesburg residents a total of $8,512,826, or an average of $593 per household, compared to the standard utility rate.
Residents received letters from Constellation in April detailing the terms of this most recent contract. These letters are customized for each energy account and provide clear instructions regarding participation options. No action is required for residents who wish to remain enrolled in the municipal energy aggregation program. As always, citizens have the choice to select the option that is best for their household and can opt out of the program, if desired.
Municipal Electric Aggregation became an option in Illinois in 2007 through the Illinois Power Agency Act, allowing municipalities to negotiate electrical power supply arrangements for their residents and small businesses, if approved by voters via referendum. In November 2012, Galesburg voters approved an “opt-out” system for municipal aggregation. This means residents are automatically enrolled in the program but can choose to opt out at any time.
“While municipalities do not directly benefit from residential energy aggregation, it is a service we are pleased to provide our citizens as it has historically benefited residents with electrical cost savings,” said Eric Hanson, City Manager. “The opt-out program, established by voters in 2012, has been a convenient and effective way for the majority of citizens to enjoy these benefits.”
While savings are not guaranteed, municipal aggregation empowers communities to leverage their collective buying power to negotiate competitive rates for power supply. Regardless of who supplies the power, Ameren remains responsible for delivering electricity and billing residents. All Galesburg users should continue to contact Ameren for outages, service calls, and emergencies.
More details on Galesburg’s energy aggregation program can be found on the City’s website. In addition, educational resources on municipal energy aggregation are available on the Citizens Utility Board website or the Plug In Illinois website.
***Courtesy of the City of Galesburg***
