Marion council approves 24-month city natural gas contract and urges residents to consider opting out of aggregation

The Marion City Council on Wednesday approved a 24-month natural gas supply contract for city facilities with Constellation and spent substantial time advising residents about the city's residential electric aggregation program after a temporary dip in Ameren's winter supply rate.

City staff recommended the 24-month term, saying it "makes the most sense, and saves us the most long term," and the council voted to authorize the contract, which staff said would take effect Dec. 1. During discussion, staff characterized the 24-month option as producing a modest increase in the supply price relative to the city's current purchase but as the most prudent long-term term.

Cody, the city planning/staff lead on utilities, explained options and timelines and said the 24-month contract would begin Dec. 1. "I think the 24 month option is what I would recommend and makes the most sense, and saves us the most long term," Cody said.

An energy consultant introduced as Rob with AGE explained differences in billing units and the residential market context, noting that in Illinois residential natural gas supply is not deregulated and commercial rates can differ. He answered technical questions about therms and decatherms and how utility bills are displayed. "In Illinois, residential natural gas is not deregulated, so you don't have a choice of where you get your natural gas supply," Rob said.

Councilmembers also discussed the city's residential electric aggregation contract with Homefield Energy, which runs through December 2028 and has had annual rate increases. Staff said Ameren's recently announced winter supply rate will be about 3 cents per kilowatt-hour lower than the current Homefield price for the winter months, creating a temporary window in which many residents could save money by opting out and taking Ameren's supply.

Cody said the city will distribute the Homefield opt-out phone number and opt-out instructions; staff read the Homefield contact as (866) 694-1262 and advised residents to have their 10-digit Ameren account number ready when calling. Staff warned that under Illinois aggregation rules customers who opt out and switch to Ameren typically cannot rejoin the aggregation for roughly a year without special arrangements, and that rejoining would depend on contract terms and any negotiated exceptions.

The council approved the Constellation natural gas contract by roll call vote. Staff said they will execute the supplier contract and update residents on aggregation options and timelines.