Columbia

Municipal Electric Aggregation Program

Municipal Electric Aggregation (MEA)

MEA is the result of a 2010 law that allows Illinois municipalities to purchase electricity for residents and small businesses in their community.  It allows the municipality to pool the electric supply of residents and small businesses and then seek bids from retail electric suppliers (RES) on the open market for an electric rate for its pooled MEA members. Small business customers consuming 15,000 kilowatt hours or less annually are eligible to participate in the MEA program.

The MEA law requires municipalities to give residents and small businesses an opportunity to opt-out of municipal MEA programs.  If they choose to opt-out, they can purchase electricity at Ameren’s default rate or they can contract directly with a RES.  These are the same choices that residents and small businesses would have if either there was no MEA or a municipality decided to not continue their MEA program.

The Illinois Commerce Commission maintains the  “Plug In Illinois” website, which includes a list of retail electric suppliers that residents/small businesses could contract with to purchase electricity in the Ameren Illinois utility area.  The suppliers offer a variety of plans which include renewable energy, fixed/variable electricity rates, and different contract term lengths.

APRIL 2025 - MUNICIPAL AGGREGATION UPDATE

The City of Columbia will discontinue its Municipal Electric Aggregation (MEA) Program as of the May 2025 meter read. At that time, all eligible residential and small business accounts currently participating in the program will automatically return to Ameren Illinois for electricity supply service.

This change is the result of recent bid pricing received through the City's aggregation consultant, Good Energy LP, which confirmed that no competitive retail electric supplier offer could beat the current Ameren Illinois default supply rate. The most recent offer—an 18-month contract from Homefield Energy—proposed a base rate of $0.09490/kWh plus an undetermined Capacity Adder, compared to Ameren’s fully defined current rate of $0.08277/kWh.

It is important to note that this does not mean Columbia’s MEA program has been permanently terminated. If, in the future, the City is able to secure a more competitive electricity supply rate through aggregation, the program may be reinstated. The City anticipates evaluating market conditions again in spring 2026.

Because the MEA program will not continue beyond May 2025, participating customers will receive a letter from Ameren in June 2025 notifying them that their current electric choice is ending. They will then have approximately 60 days (two billing cycles) to choose a new electricity supplier or take no action.

Customers will have two options:

  1. Select a new retail electric supplier from the more than 40 listed on the Illinois Commerce Commission’s Plug-In Illinois website: www.PlugInIllinois.org
  2. Do nothing, and automatically revert to Ameren Illinois for electricity supply. Ameren’s default supply rate fluctuates monthly, and customers who choose this option must remain with Ameren for a minimum of 12 billing months

If price stability is a concern, the City recommends that residents and businesses take no action and allow Ameren to become their supplier, at least for the next 12 months.

FALL 2024 AGGREGATION UPDATE

The Good Energy Central and Southern Illinois Electric Buying Group (GECSI) has announced the City of Columbia, along with other communities in the Metro-East, has renewed its Municipal Electric Aggregation (MEA) program with southern Illinois based Homefield Energy.  Homefield will replace the current supplier, Constellation New Energy. Homefield Energy served as the GECSI supplier for many years prior to the switch to Constellation.

As part of this renewal, residents and small businesses in Columbia participating in the MEA program will enjoy a lower electricity rate of $0.09054 per kilowatt hour (kWh) starting in December 2024.  This represents a significant decrease from the current MEA rate of $0.1220/kWh, saving participants more than $25.00 per month on average (based on 800 kWh usage).

Unlike previous contracts for the MEA program, GECSI, along with their consultant Good Energy, have deliberately secured the new rate for a short period of time due to the uncertainty in the energy market.  The new shorter program will commence on the December 2024 meter read date and will continue through the May 2025 meter read date.  This new 6-month program rate is a fully fixed rate and will not change during that timeframe. 

The Price to Compare (Ameren's current non-summer rate) is slightly lower at $0.0809/kWh, a difference of $0.00964/kWh.  However, this rate can change throughout the year.  It is anticipated the Transmission Service Charge portion of the Price to Compare will increase January 2025.

GECSI anticipates soliciting a new follow-on rate from its supplier prior to the expiration in May 2025; however, if the MEA rate is not competitive with the Ameren default rate, it is anticipated the City of Columbia will discontinue MEA at that time, at which time all eligible residents/small businesses will return to Ameren for electricity supply.

The City’s primary goal through the MEA program is to shield residents from the continued volatility in electric supply rates.  Since the program was approved by voters in 2012, the MEA rate has changed 7 times.  During this same timeframe, the Ameren Illinois rate has changed 30 times.

An opt out letter will be mailed to all eligible residents within the City starting October 11, 2024.  If you desire to continue participating in the program, then you need to DO NOTHING with the opt out notice.  You will be automatically switched to Homefield.  

If you choose not to participate in the program, there are several ways to do this.  Simply return the opt out notice by mail, call the new Supplier, Homefield Energy at (866) 694-1262, or go to the website referenced in the letter.  The City of Columbia cannot opt residents, or small business out of the program.

If you have questions about the program, or wish to opt out:

Homefield Energy - (866) 694-1262

Vicki Browning, Good Energy - (844) 686-4244 (direct) / (713) 259-0222 (mobile)