Consultant explains Swansea's aggregation opt‑out rules and why rates can spike

Steve Bryant, a consultant for Good Energy, told the Village Board that Swansea's municipal aggregation — approved by residents in April 2013 — functions primarily as an insurance policy against large, unanticipated electricity price spikes. "The entire opt out program was adopted in 2010 by the state of Illinois," Bryant said, and villages that run aggregation programs must follow statutory opt‑out notice rules.

Bryant explained how opt‑out letters work and common resident confusion around the 21‑day statutory notice: "That 21 days is a requirement... but residents can opt out of the program anytime they desire," he said, adding that residents who return to Ameren default service after an opt‑out may be required to remain on Ameren for a year. He emphasized the difference between the supply price the village negotiates and Ameren's delivery charges, noting that delivery fees can rise independently of supplier contracts.

Why it matters: Bryant said wholesale and capacity market volatility has made long, 36‑ or 48‑month fixed supplier contracts rare. He cited past capacity auctions that rose from roughly $30 per megawatt‑day to more than $200–$300, which rippled into retail prices. "We have been really working hard to lock in fully fixed rates," he said, and described negotiating a 17‑month fixed contract for village accounts.

On municipal accounts and savings, Bryant said Swansea's owned accounts pay substantially lower rates than the regional average because they are bid separately. He cited an owned‑account rate of about 8.87¢ per kilowatt‑hour versus an average near 14.57¢ today and told trustees that participating residents have saved roughly $3 million since 2013. He also described a separate lighting contract and a recent municipal arrangement to participate in community solar, which he estimated could save the village roughly $70,000–$90,000 a year on municipal accounts.

Trustees asked procedural questions about timing and outreach. Bryant said opt‑out letters for the upcoming contract will be mailed mid‑to‑late September and that the supplier sweep/online opt‑out process has reduced inbound calls: "over 60% of them opted out online" in the last cycle, he said. He offered to draft materials for the village's news outlet and advised trustees to prepare residents for questions about anniversary dates and utility‑hold rules.

What comes next: Bryant urged clear outreach and recommended that the village publish explanatory material online when the opt‑out packet is mailed. He said staff will provide detailed notices and that the new supplier term would be about 17 months.