MAHOMET, Ill. (WCIA) — One Central Illinois town has helped people in their community save $2 million on electric rates.
As temperatures increase, so does the burden on electricity bills. However, twelve years ago, Mahomet opted for an aggregation program that currently aids residents in reducing their electricity expenses.
“Communities come together as a collective group and seek competitive bids for electricity supply rates,” explained Patrick Brown, the Village Administrator of Mahomet.
Illinois passed legislation for the aggregation programs in 2009. Then, voters in Mahomet passed a referendum for it in 2012.
“Electricity rates have been highly unpredictable in recent years,” Brown noted. “We used to secure contracts lasting two or three years with fixed rates. Nowadays, these contracts tend to be six to twelve months long due to the unpredictability of pricing.”
People get three weeks to opt out of the aggregation program after getting new rates from the village. Mahomet’s aggregated rates rose in June, causing some people to leave and go with Ameren’s rate.
However, some people ran into a problem: Ameren raised its rate higher than what they were paying through Mahomet’s aggregation program.
“You know we usually get a lot of residents call in and say ‘How can I get back in,'” Brown said.
Jessica Trefzger, is a local business owner.
“I opted out just briefly before it began because we didn’t have a lot of notice. So, because I didn’t know what Ameren was going to do, I wanted to wait and see. I regret doing that; I should have just stayed in the aggregation,” Trefzger said.
Brown said that for the most part, rates aren’t all that different.
“The closest thing I can compare it to is when people give you advice on the stock market. You invest, and you have ups and downs, but you stay in it for the long haul,” Brown said.
From the end of 2024 to now, the aggregated price per kilowatt jumped two cents while the market price increased by four. The difference may seem small, but local businesses have felt it.
“Since I had opted out of the aggregation at first, because I didn’t know what the price would be, I’m a month behind, I’ve gotten to experience the increase,” Trefzger, owner of The Hive, said. “I’m very excited to get back on the aggregation as soon as possible.”
Brown said he expects rates to decline toward the end of summer whether you are part of an aggregation program or not.
