Galesburg energy contract changing in June — what residents need to know

Editor’s note: This story has been updated to clarify the comparison between the Direct Energy rate and the current Ameren rate.

Galesburg residents will see a change in their electricity supply rate this summer when the city’s municipal energy aggregation contract switches from Constellation to Direct Energy.

The new contract takes effect with the June 2026 meter read and runs through August 2027. The fixed rate under the new contract is $0.1276 per kWh — an increase from the current Constellation rate of $0.1089 per kWh, and slightly above the current Ameren general utility supply rate of $0.12539 per kWh. However, the Ameren rate expires in September 2026 and is subject to change after that. The city says locking in a fixed rate through August 2027 is expected to prove beneficial for residents as energy prices continue to rise.

The city notes the Direct Energy rate is the lowest fixed rate offered for this contract cycle and will not increase during the 14-month term. Residents can expect to see the new rate reflected on bills received in July or August.

Participation in municipal energy aggregation from January through December 2025 saved Galesburg residents a combined $18,997.97 compared to the standard Ameren rate.

No action needed — unless you want to opt out

Residents currently enrolled in the aggregation program will be automatically switched to the new Direct Energy contract. Residents currently with Ameren for their energy supply will also be automatically enrolled.

Residents who do not want to participate should opt out before May 10, 2026. To opt out:

Residents can opt out at any time during the agreement, but the city recommends doing so before May 10.

Residents currently under contract with an alternative electricity supplier should review the terms of their agreement before switching. Those who previously opted out and want to re-enroll with Direct Energy can call (866) 968-8065.

New Galesburg residents will need to contact Direct Energy directly to enroll. Until they do, they will be charged Ameren’s current energy rate.

Watch out for outside solicitors

The city is warning residents to be cautious of outside energy suppliers who may contact them by phone, mail, or door-to-door. These companies are not affiliated with the city’s municipal aggregation program and may not be able to offer the same rates or protections.

Direct Energy will not solicit residents through any of these methods and will not ask residents to sign a contract.

Ameren remains your delivery company

No matter who supplies your electricity, Ameren remains the delivery company. Residents should continue to contact Ameren for outages, service calls, and emergencies. Bills will continue to come from Ameren with the new supplier charges included.

For more information on electric supply options, visit the Illinois Commerce Commission’s Plug In Illinois website at pluginillinois.org.

Energy aggregation FAQ

1. I received a letter regarding energy aggregation, what should I do?

All residents and small businesses will soon be receiving a letter from Direct Energy regarding the energy aggregation program. You do not need to do anything; you will be automatically enrolled utilizing the standard rate of $0.1276/kWh in the energy aggregation program with Direct Energy. This is true for those already enrolled in the current aggregation program, as well as those currently with Ameren for their supply of energy. The only circumstances where action from you is needed is if you prefer not to participate, or if you have previously chosen to opt-out and use an alternative supplier or Ameren but now would like to participate in the energy aggregation program with Direct Energy (see question 7).

2. How does the energy aggregation program work?

Illinois law provides municipalities with the opportunity to assist their residents and small businesses in reducing their electricity costs. Municipalities can aggregate the electric load of their residential and qualifying small businesses into one larger load and then solicit bids for electricity supply and related services for this larger group. These bids will reflect the electricity supply portion only. Ameren will continue to deliver the electricity across existing poles and wires. Additional information to evaluate the various electric supply options can be found on the Illinois Commerce Commission’s Plug In Illinois website: pluginillinois.org.

3. What is the benefit of energy aggregation?

Municipal Electric Aggregation is a program that allows local governments to bundle — or aggregate — residential and small commercial retail electric accounts and seek bids for a lower cost supply of power. Energy aggregation was approved by the citizens of Galesburg during the November 2012 election.

4. Who is the supplier for the energy aggregation program for Galesburg?

Constellation is the current supplier for the residential and small commercial aggregation contract expiring June 2026, and Direct Energy has the new contract which will remain in effect through the August 2027 meter read date. Residents can expect to start seeing the newly adjusted rate reflected on the bills received in July or August.

5. How do I enroll in the energy aggregation program?

You do not need to do anything to utilize the standard Direct Energy rate of $0.1276/kWh — enrollment is automatic. This is true for those already enrolled in the current aggregation program, as well as those currently with Ameren for their supply of energy. Residents or small businesses currently under contract with an alternate electric supplier should review the terms of their agreement with that supplier to determine whether or not they are currently eligible to leave their contract without incurring any fees for terminating the contract. Only this small percentage of residents and small businesses who previously opted out and set up an agreement with an alternate supplier will not have been automatically enrolled in the energy aggregation program and would need to contact Direct Energy directly to enroll, after verifying their options with their current alternative supplier. Direct Energy is available by phone at (866) 968-8065. New Galesburg residents will need to enroll in the energy aggregation program with Direct Energy. Until then, the resident will be charged Ameren’s current energy rate.

6. What if I do not want to participate in the energy aggregation program?

If you choose not to participate in the energy aggregation program, utilize one of the three options provided in the letter, which include:

If a resident prefers to opt out, it is recommended to do so before May 10, 2026; however, citizens can opt out at any time during the agreement.

7. What if I am currently being served by another electricity supplier or Ameren?

Residents or small businesses currently under contract with an alternate electricity supplier should review the terms of their agreement with that supplier to determine whether or not they are currently eligible to leave their contract without facing any fees for terminating the contract. Only this small percentage of residents and small businesses who previously opted out and set up an agreement with an alternate supplier will not be automatically enrolled in the energy aggregation program. Customers who are eligible and interested in switching their energy supplier may call Direct Energy at (866) 968-8065.

8. What if I am solicited by an electricity supplier?

Other energy suppliers may solicit Galesburg residents and small commercial businesses via phone, mailings, or door-to-door to enroll with their company. Caution is recommended, as these suppliers are not the supplier selected by the City of Galesburg for municipal energy aggregation and may not be able to provide the same rates or assurances as Direct Energy. Municipal aggregation enrollment with Direct Energy is automatic, and they will not be soliciting through any of the means listed above.

9. Who do I call if the power goes out?

No matter who supplies the electricity, Ameren remains the delivery company. All Galesburg users would continue to contact Ameren in the case of outages, service calls, and emergencies.

10. Who will my electricity bill come from?

You will still receive a bill from Ameren with the new supplier charges included. The electricity will be provided by your supplier and the distribution through the power lines will be provided by Ameren, but you will still receive only one bill from Ameren for all services. Residents can expect to start seeing the newly adjusted rate reflected on the bills received in July or August.

ReCENT POSTS

Loading...