The deal secures a steady 6 cent-per-kilowatt price for the entire contract. | File photo
The deal secures a steady 6 cent-per-kilowatt price for the entire contract. | File photo
The city of Urbana and Homefield Energy have agreed to a three-year electric aggregation deal.
The deal leverages Urbana's buying power with the group purchasing power of other municipalities to secure a steady 6 cent-per-kilowatt price for the entire contract.
“Urbana’s electric aggregation program has saved Urbana residents approximately $1.1 million since its inception in 2012 after being approved by voters," Mayor Laurel Prussing said. "We think it is an excellent example of the city working on behalf of residents."
The new rate is 0.76 cents per kilowatt hour lower than the rate paid by Ameren Illinois customers for their first 800 kilowatt hours, but is also an increase on the current 4.74 cent-per-kilowatt hour price, which city officials said was well below market rates.
All of the energy provided to Urbana is expected to come from renewable sources.
Residents will receive letters this month or in April explaining the procedure for opting out of the program. Any residents who don't go through the opt-out process will be enrolled in the program automatically when the program kicks in during the June billing cycle.
Small businesses that use less than 15,000 kilowatt hours annually are also eligible for the city's rates.
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