City of Effingham Contracts for Electrical Supply
Published on December 12 2012 4:42 pm
Last Updated on December 12 2012 4:42 pm
Written by Greg Sapp
The City of Effingham has entered into its initial electrical supply agreement. The City was given permission to seek an electrical supply by voters in the November election.
City Administrator Jim Arndt said the agreement was finalized Tuesday afternoon. The City entered into a 17-month agreement with Homefield Energy for the supply of electricity as part of Effingham's municipal aggregation program.
Arndt said City officials did better than hoped as far as rates. Prior to Tuesday's bid opening, the City was hoping for a 25% savings over the current blended Ameren rate. Instead, the agreed upon supply rate for electricity is .03909 cents per kilowatt hour. This equates to a savings of 30.6% on the supply portion of residents' electric bills.
Arndt said City residents will receive written notice from Homefield Energy within the next 10 days providing them with the opportunity to opt out of the program. To opt out, residents will need to return a portion of that letter to Homefield Energy. To get the 30.6% savings, residents do not need to do anything. Arndt is hopeful residents will begin to see their savings in March 2013.
Arndt reminds residents that anyone going door-to-door or phoning about discounted electricity is not affiliated with the City or the City's electricity aggregation program.
For more information, contact City Administrator Jim Arndt at 342-5308.