A recent piece of legislation that allows communities to receive lower electric rates from providers all over the country is being taken advantage of by a local community.
The City of Lincoln has been investigating into what is called "Electric Agrigation." Lincoln Mayor Keith Snyder explains the issue goes to referendum first, if approved by the voters, the city would hire a company to go out and acquire bids from electric companies to provide those in the city with electricity, and those in the city can chose to be or not to be a part of the program.
[audio:electricagrigation1.mp3]Mayor Snyder On Program[/audio]
The major advantage to the city of Lincoln would be providing residents with more options for their electric rates. Snyder notes things may shake out so the city has several options on how they want their electricity provided as well to be more environmentally friendly. He adds several other towns in Logan County have adopted the referendum as well.
[audio:electricagrigation2.mp3]A Word From Mayor Snyder[/audio]
According to Snyder, electric rates are currently low. He says the rates they would receive back hinge on what the electric markets do, which could be the one downside to Lincoln being a part of the program.
[audio:electricagrigation3.mp3]Snyder On Electric Rates[/audio]
The contract the city could enter into can be a short term contract or a long term contract. Snyder says if the city inters into a shorter contract, their rates most likely would be lower, but the longer their contract is the higher the rates would most likely be.
[audio:electricagrigation4.mp3]A Word From Snyder On Contract Options[/audio]
Should the referendum pass, the city will enter into an original contract. After the first contract expires they could then go out for bids again through a company to get rates for them, in hopes of finding lower rates. Snyder says this ensures they do not pay more than what their local provider would offer, which for Lincoln is Ameren.