PIKE: Electric rates will triple in February for most residents
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By BETH ZUMWALT
The city of Pittsfield announced at its Tuesday, Oct. 4 meeting, that it had negotiated the best deal it could get for electricity for the year. Even at best, the news was not good.
“We could go with other companies and get a rate locked in for three months, this is for an extended time,” Gary Mendenhall said. “There were very few bidders at all for our business. Homefield, our current provider, did not bid.”
With electrical prices expected to rise in the next year, city officials felt the need to get the lowest price possible and lock it in for an extended time.
Pittsfield ended up signing a contract with Constellation Energy for the price of $12.23 per kilowatt. The contract extends for 22 months. The city can cancel anytime should rates fall, a situation not likely.
Mendenhall said there were 28 municipalities from around the area, trying to bargain with power entities for the lowest rate possible, but there was no interest from the electrical providers.
Currently, customers with Homefield, which are 97 percent of Pittsfield customers, pay $4.86 per kilowatt.
“That means your bill will nearly triple,” Mendenhall said. “I found an electric bill of mine and checked. The bill was for $94. Under the new contract, I’ll pay $267.”
Customers in the county who are on Ameren, but not part of a electrical aggregation program, will pay $12.74, except for Griggsville.
“We locked in our contract back in the spring,” Kent Goewey, mayor of Griggsville, said. “We are locked in at $5.01.”
Barry and Pleasant Hill do not belong to an aggregation program and those Ameren customers will pay Ameren rates of $12.74
“We have several different electrical companies that serve Pleasant Hill,” Craig Robinson, village president said. “Some are Ameren, some are REA, some are other companies. It would be hard to negotiate with all the residents and the companies.”
Electrical companies are zoned into certain areas and those areas must use the provider that serves the zone where they live. As cities and villages have grown, it is not uncommon for neighbors to have different electrical providers.
Jeff Hogge, city manager for Barry, said the city shops for electricity for the city’s needs- city hall, the municipal building, etc, but, not for the residents.
City of Pittsfield residents can expect to receive a letter from Ameren in the near future, probably before the end of the month. The notice will inform the electric customer, they will be served by Ameren, due to the aggregation expiring. Customers should not respond to this letter if they want to remain in the new aggregation.
In December, Constellation NewEnergy will send an opt-out letter for anyone who does not want to be a part of the new aggregation. Again no action is needed, if customers want to remain with the city’s program.
If the electrical rates drop during the time of the contract, any municipality has the option to drop out without penalty.
