Urbana residents and small business owners have saved about $500,000 collectively on power bills within the first three months of the Municipal Electric Aggregation program. Voters passed a referendum for the program during the March 2012 primary and put it into action May 8.   

Mike Monson, Urbana chief of staff, said this two-year program gives residents and small businesses that produce 15,000 kilowatts or less a year the option of paying a lower power bill by bundling their electric with others in the community.

“The average savings is $45 over three months,” he said. “It’s close to what we thought but actually a little bit better. If we can put $150 in each residence’s pocket (per year), that’s good.”

Residents and small business owners who are a part of the program are grouped with 50 other Illinois communities that receive their energy through Homefield Electric. Urbana Mayor Laurel Prussing said she chose the company’s bid of 4.05 cents per kilowatt hour over three other bidders because she felt Homefield was the best deal as it was a larger group and could offer a lower price.

“The whole purpose is to have a big group, so that it can be sold to more customers and that lowers the rate,” she said. “I think it is something good Urbana did, and we are pleased to see our efforts got the best price for our citizens.” 

Prussing said the group’s electricity rate is currently the lowest offered in Champaign County. 

This program has also cut costs for University students. Chelsea Randall, junior in ACES, lives in an Urbana apartment and said she chose the aggregation program because it was less expensive.

“I haven’t really noticed a difference in my bill since it’s only been two months,” she said. “But it just made sense to get because it’s cheaper.” 

The program also uses Renewable Energy Certificates from Iowa and Illinois wind farms, which offsets carbon emissions.

The Champaign County Board passed a similar referendum in elections this November.

Corinne can be reached at [email protected].