Council authorizes city manager to pursue two‑year energy supply agreement through Priority Power to stabilize municipal electric costs

The Collinsville City Council voted May 12 to authorize the city manager to enter into an all‑inclusive kilowatt‑hour energy supply agreement for city facilities in the Ameren service territory using broker Priority Power.

City Manager Derek Jackson described the authorization as administrative flexibility rather than a binding lock: the ordinance gives him authority to negotiate and execute an agreement, with staff recommending a two‑year term with Direct Energy as the supplier based on Priority Power’s pricing proposals. Jackson summarized past agreements with Priority Power (since 2018) and said those purchases have saved the city about $353,000 since 2018. He said the recommended two‑year approach aligns with anticipated solar projects at the wastewater treatment plant and estimated the municipality could save about $200,000 across approximately 93 city accounts by securing current rates.

Rob Wilt of Priority Power, present to answer questions, explained that Priority Power is a broker that solicits competitive offers from licensed retail electric suppliers; he said the suppliers purchase blocks of energy and pricing depends on market timing, supplier competition and community usage. Council members asked clarifying questions about how supply contracting differs from Ameren’s delivery and transmission charges; staff said the ordinance does not affect resident utility bills and applies only to city facilities in Ameren territory.

After discussion the council approved the motion (moved by Hausman, second by Seaton) and adopted the ordinance by roll call vote.