In their rush to get good deals on electric rates, Granite City residents may miss a better deal later on, said Mayor Ed Hagnauer.

Hagnauer is urging residents to hold off on signing up with low-cost electric companies until after a March 20 election on a measure allowing the city to bargain with electric providers for cheaper rates. Numerous companies are sending out letters appealing to city residents to sign up with their own plans, Hagnauer said.

"We're not forcing anybody to do anything, but there could be an opportunity out there to save money," Hagnauer said. Going in with other cities, Granite City may have better bargaining power than other companies, he said.

The city is one of at least 48 municipalities and counties in the Ameren Illinois area that placed the issue on the March 20 ballot.

Residents will be asked if they want the city to negotiate under the state's Electric Aggregation Opt-Out Program. The program allows municipalities to negotiate with suppliers for cheaper rates for homes and small commercial businesses.

Residents and businesses would be part of the program unless they opt out. Those who have signed up for another plan wouldn't be part of the program.

The city would combine its negotiating power with about 70 municipalities with about 250,000 households, said Philip Carr, business development director for Good Energy. Granite City is a client of that company, which provides energy consulting services. Homeowners could see savings of $125 to $150 a year, he said.

People would still pay bills to Ameren Illinois and receive service from that company. Under Illinois law, Ameren Illinois is an energy delivery company, said Ameren Illinois spokesman Leigh E. Morris. The company bills users for services and passes through the electric provider's costs.

Contact reporter Jim Merkel at 618-344-0264, ext. 138