The City of Champaign has received reports from Integrys Energy Service (IES), the City’s electricity supplier for our Municipal Electricity Aggregation (MEA) Program, of an estimated $1.6M in savings. This is the total savings from the start of the program (August 2012 through May 2013). The City executed the MEA agreement with IES beginning May 24, 2012 for two years (through June 2014 meter reads).
On May 31, 2013, IES notified the City that they planned to increase the MEA electricity rate from $0.04149 to $0.04315 per kWh, a four percent (4%) increase due to increased tariffs from the ICC and MISO (see tariff definitions below). The increase will be effective with the June 2013 meter reads billed in July. IES is not increasing their energy supply unit price, in accordance with the executed MEA agreement. However, IES is passing along the ICC/MISO tariff increases which is allowable under the agreement. It is standard MEA contract language to allow the electricity supplier to pass along tariff and tax increases. The current Ameren price to compare is $0.0468 per kWh. The MEA rate is still lower; however, Ameren’s price to comparehas decreased significantly since the City executed the MEA agreement with IES ($0.06169 to $0.0468).
Tariff Definitions:
• ICC Tariff: The ACP (Alternative Compliance Payment) is a required payment that all retail electricity suppliers in Illinois must pay to the ICC for every kWh of electricity they sell in Illinois. The ICC uses these dollars to ensure/enforce compliance with the Illinois Renewable Portfolio Standard. The ICC increased this tariff May 13, 2013, effective June 1, 2013.
• MISO Tariff: The NITS (Network Integration Transmission Service) is a MISO (Midwestern Independent System Operator) tariff that Ameren distribution customers must pay. The tariff covers MISO expenses associated with delivering and balancing electricity on the regional grid. MISO increased the tariff late 2012, effective January 1, 2013.