What is municipal aggregation, and why did Belleville residents get letters about it?
Phones start ringing in city halls across Illinois every year or two, when residents get letters about “municipal aggregation.”
The term refers to a 13-year-old state program that allows cities to join together to seek bids on electricity and to contract with the lowest-bidding companies to supply it to local households.
“It’s like buying in bulk,” said Jamie Maitret, finance director for the city of Belleville, who often fields such calls.
Letters recently notified residents that the city’s former contract ended and officials picked a new supplier. They also gave instructions on how to “opt out” and go with a different company, if desired.
Under the new contract, Belleville’s electricity rate is 11.973 cents per kilowatt hour, which is up more than 2 cents. Again, the supplier is Homefield Energy, a Collinsville-based company that serves more than 200 cities and counties in Illinois, according to its website.
“Ameren recently filed its summer rate with the Illinois Commerce Commission (ICC) at $0.12547 per kWh, beginning June 1, 2025, and covering the summer months through September 2025,” the city of Belleville posted on a page announcing the new contract.
“Ameren account holders that enroll in the Program will see considerable savings during the summer months, the highest usage months of the year. Small commercial accounts (15,000 kWh or less/year) will enjoy even larger savings with Ameren’s small commercial rate climbing to $0.14580 per kWh.”
Electricity supply is different than delivery, which is handled by Ameren Illinois. That company owns lines, poles, substations and other equipment. It also sends out power bills that cover all costs.
“Ameren is delivery,” said spokesman Brian Bretsch. “That portion of the bill helps us recover costs for routine maintenance and repairs.”
Ameren can function as a supplier, but it doesn’t own power plants or wind farms, so it has to buy electricity, just like Homefield and other companies, according to Bretsch.
Ameren’s rates can change based on market conditions, if they’re approved by the Illinois Commerce Commission. Municipal-aggregation rates are locked in for the contract term.
There are no financial penalties for opting out, and cities don’t make any money off contracts, so Belleville officials don’t try to sway residents one way or the other, Maitret said.
“All I advise is, ‘Do your homework,’ because there’s almost always fine print (in company offers),” she added.
Maitret gave the examples of “introductory rates” that can lead to sharp increases after a certain period of time and other adjustments based on changing market conditions.
Belleville resident Jason Koderhandt said he opted out of municipal aggregation because he thought he could save money.
Koderhandt dislikes the way residents can be switched to new electricity suppliers automatically if they don’t opt out. Some people may not receive letters because the U.S. mail is undependable, he said.
Illinois residents voted for municipal aggregation in a 2012 referendum, which formed the basis for rules and regulations that are established by state law, according to Maitret. That includes the mandated mailing of letters announcing new contracts and rates.
A common misconception is that cities have control over rates, she said. “Electricity is a commodity. The price of it is out of our hands.”
