Wednesday, July 10, 2013
 
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Mayor warns about energy marketing calls

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[July 10, 2013]  Lincoln Mayor Keith Snyder is urging Lincoln residents to be wary of marketing calls being made by energy providers.

"I have received calls at home and at the mayor's office in recent days from energy supply companies claiming they can lower the rate I'm paying for electricity," Snyder said. "Many residents have complained to me about the calls as well. During each call the companies claimed their rates are much lower than the Ameren rate for electricity."

"The problem is, if you are a participant in the city's electric aggregation program, the rate you are paying is already 14 percent lower than the Ameren rate and probably lower than the direct-marketing companies are offering over the phone," the mayor added. "It would be a shame if residents were misled by a marketing pitch and signed up for a rate they thought was lower, only to find out they are agreeing to pay a higher rate."

The mayor said the current electric aggregation rate provided for city residents by Integrys Energy runs through September 2014. Following the conclusion of the current contract, the city again plans to solicit bids for community electrical needs, using the aggregation process.

"We were pleased with the rates we secured a year ago and are anticipating we will do as well when we rebid the electricity needs of Lincoln next year," the mayor said.

Snyder indicated there is an easy way to learn the rate you are paying for electricity and whether you are participating in the electric aggregation program. On the second page of the typical Ameren residential bill, there is a section entitled "ELECTRIC SERVICE BILLING DETAIL – Rate Zone II." There is a line in that section listed as "ENERGY CHARGE." To the right of that line is the rate you are paying for electricity.

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If you are a participant in the electric aggregation program, your energy charge will be shown as $.04084310 (or 4.08431 cents) per each kilowatt-hour you used. That 4.08431 cents per kwh is the rate secured by the electric aggregation program.

Above the energy charge line are three bold lines entitled "Electric Power Supply." Electric aggregation participants will see that their electricity comes from "Integrys Energy Services." Integrys is the supplier for the city of Lincoln's electric aggregation program. If there is a different supplier listed than Integrys, you are not a participant in the city's electric aggregation program.

"The marketing companies may tell you that Ameren's rate is above 4.5 cents per kwh, and they can get you a lesser charge," Snyder said. "You need to ask them if they can beat the city's rate of 4.08431 cents per kwh. That would be the key answer for them to provide."

Residents are encouraged to ask a lot of questions and read any and all fine print in any agreement they are asked to sign or agree to over the phone to ensure they would actually be saving any money when all costs are considered.

[Text from news release received from Lincoln Mayor Keith Snyder]

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