FULTON, Ill. — Fulton residents and small businesses are expected to receive approximately $560,000 in electric generation savings during a three-year agreement with FirstEnergy Solutions.

Under Illinois law, communities are able to form municipal aggregation buying groups to arrange for electricity on behalf of citizens. In November, citizens passed a referendum allowing the city to purchase power for small commercial businesses and residents. On Thursday, Mike Mudge from Rock River Energy Services said the results of the municipal aggregation program are better than he anticipated when he began working on the program with the city last August.

Fulton is the first community in Illinois to have begun the aggregation process, though City Administrator Randy Balk said other communities are now working on similar programs. Through Fulton’s program with FES, residential customers will receive a low fixed price of 6.23 cents per kilowatt-hour on electric generation. The fixed rate for small businesses will be 6.04 cents per kilowatt-hour. Balk said these rates mean an estimated 20 percent savings of ComEd’s current rates for residents and 21 percent for small businesses. Mayor Larry Russell said that while Fulton is not a big city like Aurora, Ill., or Rockford, Ill., he felt the community has received the better, big-city rates from FES because Fulton is the first in the state with this program.

FES is a subsidiary of FirstEnergy Corp. that provides competitive electric generation supply and other energy-related services and products to more than a million customers. The company is a licensed supplier in Ohio, Pennsylvania, New Jersey, Maryland, Michigan and Illinois.

In Ohio, FES has provided savings to more than 1.4 million residential and small commercial participants in more than 300 communities in a similar aggregation program. FirstEnergy Solutions Major Account Executive Richard Olson said he was excited about the agreement with Fulton.

“It’s a great opportunity to be the first one in Illinois, to be able to do this. It’s been a very successful program for FES and it’s customers in Ohio,” Olson said. “It’s great to finally hit the ground running here and work with the city of Fulton to get everything going.”

Balk, Russell and others at the press conference Thursday focused on the economic development aspect of this program. Russell said the money saved with this plan will have a better chance of staying in Fulton.

They said the savings for small businesses could attract new businesses to the community and allow existing ones to grow. Members of the chamber of commerce attended the meeting in support of this program.

“This timing of this contract; this agreement, is very helpful too for economic development with a potential prison that we believe should or will open. Housing; new housing; new business start-ups are going to be able to capture this,” Balk said.

With the contract signed, Balk and Mudge said the next part of the aggregation process will begin soon. Mudge said the first “opt out” letter will be sent in the mail June 1 or June 2. A person wanting to be a part of the program does not have to respond. People will have two chances to opt out of the program. Anyone opting out later would be charged $50. Three categories of people will not receive letters about the program. Mudge said people who have an electric heat rate with ComEd, have an hourly rate with ComEd or have already chosen a supplier will not be sent letters.

Balk said they expect to have billing in mailboxes sometime in August, reflecting the July air conditioning.

“The citizens should see a noticeable impact right away on their first billing in August,” Balk said.

ComEd will continue to provide the same level of electricity, read meters, send monthly billing statements and maintain service for residents participating in the aggregation program. Balk said ComEd has supported the aggregation process.

Besides providing electric generation, FES is also giving Fulton a one-time grant of approximately $13,000 to use as the city sees fit. Balk said they have discussed using it in various ways, such as a geothermal system at the senior center or an updated siren system.

“It’s just a nice little gesture on FES’s part to give money to the community to use it as they wish,” Balk said.

He said representatives from the corporate office were going to attend the press conference and present the grant, but were unable to travel due to weather warnings. He said they will have a separate grant ceremony when they are able to come.