Alternative suppliers vie to save you money on electric bill
CHAMPAIGN — Residential electric customers in Illinois can save some on their bills if they're willing to do a little homework.
Thanks to deregulation, customers served by Ameren Illinois can select an "alternative retail electric supplier" who can give them a break on energy prices.
If you go that route, Ameren Illinois would still deliver the electricity to your home, and in most cases, your bill would still come from Ameren.
But the company supplying the electricity would not be Ameren.
So far, eight alternative suppliers have been certified by the Illinois Commerce Commission to serve Ameren Illinois customers. Five of those have registered with the utility.
They include:
— BlueStar Energy Solutions.
— Constellation Energy.
— Champion Energy.
— Integrys Energy Services.
— Nordic Energy Services.
Some offer electricity at rates lower than Ameren Illinois does.
For instance, BlueStar offers electricity at a fixed price of 5.175 cents per kilowatt-hour. A customer using 1,500 kilowatt-hours per month would pay $77.63 for that electricity.
That compares with Ameren's fixed price of 5.646 cents per kilowatt-hour. At that rate, a customer using 1,500 kilowatt-hours a month would pay $84.69.
The Integrys rate is fairly similar to BlueStar's. Integrys has a fixed price of 5.182 cents per kilowatt-hour, meaning a customer using 1,500 kilowatt-hour would pay $77.73.
The information comes from the commerce commission's website www.pluginillinois.org and applies to customers who live in the portion of Ameren Illinois territory formerly served by Illinois Power.
Residents formerly served by Central Illinois Public Service or by Central Illinois Light Co. can find rates available to them at the same website.
Bear in mind the examples don't include everything on your utility bill, only the cost of energy — not the cost of delivery or taxes or other charges.
"The rule (of thumb) is about two-thirds of the bill is the generation component and one-third is the distribution," said David Fein, director of retail energy policy for Constellation Energy.
The commerce commission, which regulates utilities in Illinois, says all-electric customers aren't likely to benefit by switching to an alternative retail electric supplier.
That's because all-electric customers get greatly discounted rates that can't be matched by alternative suppliers.
Electric customers need to consider other factors when choosing an alternative supplier.
One is the length of the contract. Some companies offer 12-month plans, some 24-month plans.
Customers should also consider how much it would cost to get out of the contract — that is, the termination fee.
Some companies charge a flat termination fee; others charge an amount per month for the number of months remaining on the contract.
Ameren Illinois is no longer in the energy-generation business, and the electricity it provides is procured by the Illinois Power Agency, company spokesman Leigh Morris said.
"We strongly recommend that customers approach this (consideration of an alternative supplier) the same way they buy auto insurance — get proposals from as many suppliers as possible, sit down and compare them and make a determination of what is in your personal best interest," Morris said.
Although commercial customers have been able to buy from alternative suppliers for several years, it hasn't been practical for residential customers to go that route until recently.
Only this summer have alternative suppliers begun to court customers in earnest.
Constellation Energy, for example, used a direct-mail campaign to get word out about its services, Fein said.
Integrys started pitching itself to Ameren Illinois customers in late June and early July, using a telemarketing strategy, said Brian Bowe, the Illinois market manager for Integrys.
It's not easy to sell to people who have never heard of alternative energy suppliers.
"That's the biggest obstacle we have to get around — the lack of knowledge related to the ability to switch," Bowe said.
BlueStar Energy Solutions hasn't used telemarketing or direct mail to get word out, said Aaron Rasty, BlueStar's president of retail electricity. Instead, the company has been relying on word-of-mouth referrals, media coverage and the Web for business.
At the http://www.pluginillinois.org" target="_blank">http://http://www.pluginillinois.org website, the Illinois Commerce Commission states that Ameren Illinois and ComEd won't treat customers who switch to an alternative supplier any differently from customers who don't switch.
The commission says switching is easy.
"No one will come to your home to flip a switch, and there will be no disruption of service," it says on the website.
In comparing rates, keep in mind that you can make valid comparisons only through May 2012. That's because Ameren Illinois rates for electric supply will change on June 1, 2012.
Helpful websites
To learn more about alternative retail electric suppliers and the choices available to you, visit the Illinois Commerce Commission's http://www.pluginillinois.org website.
Other helpful websites include:
— http://www.ameren.com. On the home page, move your cursor to "Customers," scroll down to "Ameren Illinois" and click. When a new page comes up, look for the "PowerSwitch" link for homes on the right side of the page and click on it.
— http://www.citizensutilityboard.org. On the home page, find "The Facts on Electric Competition in Illinois" section and click on the boldface "Ameren" link.
Yeah, but, ummmmm.....Ameren still maintains the lines. Who do you think pays for that? Free Obama money?
Just a reminder if one can not take the time to go to Springfield to testify before the ICC about the proposed rate increases, one can file such Here are two web sites that are helpful to do so.
http://www.consumer-action.org/helpdesk/
http://www.icc.illinois.gov/consumer/complaint/
When alternative companies became a serious issue a decade ago in response to Ameren rate increases, those alternatives were not a viable option because one had to join a "co-op" and pay an upfront flat fee to join. That fee effectivley made these alternatives unaffordable to any but the wealthy locally. These companies--when you factor in all the hidden costs of turning off ameren service and turning on a new service and all the deposits/refunds/readings, etc.--make the alternatives just as expensive. A word of caution to anypne giving any of them consideration.

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