04/29/2026
Village of Aviston
149 Page St • Aviston, IL 62216 • (618) 228-7262 • [email protected]
Community Update: Municipal Electric Aggregation Decision
We have received several questions about the Village’s decision not to renew our municipal electric aggregation program, and we want to explain that decision clearly.
After reviewing current market conditions, recent Ameren pricing, and historical data, we determined that renewing the aggregation contract at this time would likely increase—not decrease—electric supply costs for residents.
Here are the key points:
• Recent Ameren supply rates have averaged lower than the fixed rate being offered through aggregation.
• For a typical household, the proposed aggregation rate would have resulted in higher monthly costs, not savings.
Why this happens:
Electricity prices change throughout the year based on demand.
During most of the year — including spring, fall, and even parts of winter — demand for electricity is relatively moderate. During these periods, Ameren’s market-based supply rate is typically lower, allowing residents to benefit from reduced costs.
However, during periods of extreme temperatures, especially in the summer when air conditioning use is highest, demand increases significantly. These short periods can cause market prices to rise, sometimes sharply.
Aggregation programs are designed to protect against those spikes by offering a fixed rate. The tradeoff is that:
• The fixed rate is set high enough to cover those potential peak price increases.
• As a result, it is often higher than Ameren’s rate during most of the year.
• Residents pay a higher price month-to-month in exchange for avoiding short-term spikes.
In simple terms, aggregation acts like price insurance — it can limit sudden increases during extreme conditions, but it typically comes at a higher overall cost across a full year.
After reviewing the numbers, we found that even when accounting for possible summer spikes, the proposed aggregation rate would likely result in higher total annual costs for residents.
Additional consideration:
• Aggregation uses an opt-out model, meaning residents are automatically enrolled unless they take action.
• We were not comfortable moving forward with a program where residents could be enrolled without fully understanding the cost impact, especially when savings were not clearly demonstrated.
Implications for you:
• Residents will remain on Ameren’s default electric supply.
• You are still free to choose an alternative supplier individually if you wish.
• The Village will continue to monitor the market and will reconsider aggregation if pricing becomes favorable.
Bottom line:
We did not move forward because the numbers did not support it. Our priority is making sure residents are not locked into paying more for electricity without a clear benefit.
If market conditions change and a program can provide real, measurable savings, we will absolutely revisit it.
Aviston Village Board and President
