Electrical Aggregation Passes in Itasca
Recent changes in electrical regulation by the State of Illinois have given Illinois residents the ability to purchase their electricity from another supplier besides Commonwealth Edison (ComEd). As part of those regulation changes, municipalities may also bid the cost of electricity on behalf of residents in order to achieve larger savings. In this case the Village would have a village wide contract with a firm to supply electrical energy similar to the contract for trash pick-up. However, in order to do so, the Village must first gain public support through an advisory referendum.
In December 2011 the Itasca Village Board approved the placement a referendum on the March 20, 2012 ballot to ask its voters to give the Village the authority to aggregate electric accounts and seek bids for power generation. Itasca voters approved the referendum
Following the passage of a voter referendum on March 20, 2012, the Village of Itasca contracted to procure lower-cost electric supply. The current contractor is Homefield Energy and be reached at 866-694-1262 or by email.
Aggregation Plan Bid Information
Only energy suppliers certified and regulated by the Illinois Commerce Commission may respond. The bid that comes closest to achieving the goals of the aggregation plan would be accepted. However, if none of the bids meet the plan's goals, there would be no obligation to accept 1, and the aggregated accounts would continue to receive power from ComEd at prevailing rates. A resident or small business would have no obligation to participate and could choose to opt out of the program altogether.
The Village's goal is to provide residents with as much information as possible to be fully informed of their options. Passing the referendum still allows residents to have the ability to opt out of the program when the Village notifies residents of its choices. Instructions for doing so will be provided at that time. Residents will also have the option of opting back in. Itasca residents that decide to switch to a retail electric supplier before the Village's program is available should consider several aspects of the retail supplier's offer: Length of contract: Many retail suppliers require a minimum 1 -year contract, which would prevent a customer from getting the Village's aggregation rate until the contract ends. Termination fees: Look at the cost of early termination. Some companies charge fees and others do not.
The most important benefit is the opportunity for residents and small businesses to save money on electric supply rates. Saving can be significant but it is only on the electrical usage portion of the bill and not the delivery or other fees and taxes. A municipality can structure its request for proposals so that bidders set their rates at a specified percentage under ComEd's established rate. Market fluctuations make it impossible to guarantee that bids would come in under the current energy rate paid by ComEd customers. However, since that current rate is set every May, the market can react to it and often provide a lower rate. Right now, residents and small businesses pay a higher rate than most large commercial, industrial, and institutional accounts that have sought open market bids.
ComEd distributes electricity, but does not generate it. ComEd is responsible for infrastructure, like power lines that bring electricity into homes and businesses, responding to outages and billing. ComEd will continue to bill customers for power generation and individual electric usage regardless of the supplier of electricity. ComEd is indifferent to the aggregation program as it does not impact them financially. By law, any loss of power, downed wires, or other distribution issues will continue to be serviced by ComEd.
ComEd remains responsible for billing customers for all electricity, regardless of the electric supplier. The only change would be in the name of the electricity provider on the bill's power generation line.
NIMEC has created a new website to help residents “see” their savings. It takes about 30 seconds to calculate their monthly / annual savings. For more information, please visit the NIMEC website.