Electric Aggregation
Municipal Electric Aggregation Information for Tuscola Residents
This is information that pertains to Tuscola Residential customers of Ameren.
In 2012, the residents of the city of Tuscola approved a referendum authorizing the city officials to bid and enter into agreements with electricity suppliers to provide electricity to all residential and small commercial residents. While not the lowest rate for EVERY individual month, our contracts have averaged 14.4% lower than the non-contracted rates over the history since the referendum was approved.
The energy market heavily relies on the futures market. The City of Tuscola, along with many communities in the Central Illinois Municipal Aggregation (CIMA) group, bids out electric supply collectively for all residential and small commercial customers within our city limits. Supply companies bid on the business for the future, based on where they think the market for electric supply will be at that time. For summer of 2026, electric supply costs are expected to be higher, some estimates are suggesting rates in the 12-14 cents per kWh beginning in June. While we can never truly know the future, the rate environment and current market forces suggest a dramatic increase in cost, as discussed in the Stone River Group press release below.
The current rate of $0.08277 goes through the end of May 2026.
Due to the upcoming expiration of our current contract, the CIMA group, through the Stone River Group, participated in bidding and accepted a low bid on March 25, 2026. The low bid was accepted with Direct Energy at the fixed rate of $0.1276 per kWh for the period beginning June 2026 through May 2027. The Ameren default rate, to use for comparison, that will begin this summer is expected to be $0.12 to $0.14 per kWh.
Since the thought in the energy market is that price escalation should ease somewhat in the longer term, the CIMA group only signed a one-year contract on this rate, instead of a longer-term contract as we have done in the past. The hope is that the market will ease back down and we will get a lower rate next year.
Residents, who want to accept this rate while still receiving billings directly from Ameren, don’t need to do anything.
If a resident does NOT want to accept the negotiated rate, and instead wants to choose their own supplier and negotiate their own rates, the resident must mail in an “opt-out” card to Direct Energy by May 10. This card will be provided to each resident via a mailed packet of information. Opting out of the program means you will contract for your own electric supply or accept the Ameren rate, so please read the opt out and other information thoroughly as there is much information available to make your decision.
Historical Savings with Municipal Aggregation
Questions?
4/24/25 FAQ from The Stone River Group
4/22/26 Press release from The Stone River Group concerning the new contract.
