Peoria Standard

Energy Harbor LLC, which provides electricity to the City of East Peoria through an aggregate agreement, has proposed a new 29-month contract with the City.

The new contract will start in July and end in December of 2025.

The proposal has a price of 9.84 cents per kilowatt-hour. This does not include the capacity rates, which will be determined in June of 2023, 2024 and 2025.

While the prices are higher than they have been historically, they reflect anticipation of the rising energy and supply costs as well as inflation. Nevertheless, the price is still expected to save the average East Peoria household $40-50 each year. Several other electrical- and gas suppliers have raised their prices significantly more, so City officials are resigned to accept it, especially with recent state legislation that does not aid in lowering utility costs.

"This isn't a great rate," Mark Hill, East Peoria commissioner, said in the Feb. 21 city council meeting. "But we're going against the unknown and the volatility of this rate program all around the market."

Mayor John Kahl echoed those sentiments, noting that he was hesitant to accept the deal and contract because the rates were much higher than they had received in the past, but in the broader scope of current energy and utility markets there were not many better options. He was especially suspicious of the to-be-determined capacity rates.

The council passed the resolution and approved an agreement with Voltus for demand-response services that provides additional revenue for the City at no cost by reducing electrical usage during times of high demand.

East Peoria has had an electrical aggregate contract and program since 2012 when it was approved by a referendum. Over the past decade, the City estimated that they had saved residents approximately $7 million in utility fees with the program.

An opt-out program is available to residential and small commercial users within the City’s jurisdiction.