As a result of changes to state law, municipalities can choose to arrange for the provision of electricity to residential and small commercial retail customers by alternative electric suppliers (instead of Com Ed). Electric Aggregation allows a municipality to consolidate electrical energy consumption within their communities and leverage that demand to seek bids to purchase electricity in bulk in the hopes that the selected rate will be lower than the standard rate offered by Com Ed.
The Village Board discussed the issue of electrical aggregation on January 23, 2012 and again on June 25, 2012. To read a staff report from the June 25, 2012 meeting which provides a more in-depth analysis of electric aggregation, please click here.
On July 9, 2012, the Village Board approved a resolution to authorize placement of a referendum regarding an "opt-out" electricity aggregation program on the November 6, 2012 election ballot. To read a staff report and resolution from the July 9, 2012 meeting, please click here.
On November 6, 2012, the referendum authorizing the Village to arrange for an "opt-out" electricity aggregation program passed by a margin of about 65% (4,733 to 2,515). To read a staff report and ordinance passed by the Village Board on November 26.2012, please click here. Approval of the referendum does not obligate the Village to implement an "opt-out" electricity aggregation program if bids result in electricity prices that are higher than Com Ed rates.
Under an "opt-out" electricity aggregation program, Com Ed will remain the distributor of electricity in the Village. The selected alternative supplier will generate the electricity provided and deliver it to Com Ed for distribution. Customers will continue to receive electricity bills from Com Ed and Com Ed will remain responsible for all distribution system issues, including outages and equipment maintenance. Eligible residents would automatically be enrolled in the program unless they choose to "opt out".
The Village has entered into a one-year agreement with First Energy Solutions. The steps taken by the Village to implement the program are as follows:
1. Consultant Selection: The Village Board passed a Resolution Authorizing an Agreement with the Illinois Community Choice Aggregation Network for Electricity Aggregation Program Consulting Services on Monday, January 14, 2013.
2. Draft a Plan of Operation and Governance which explains to customers and potential electricity supply bidders how the aggregation program will operate, how customers will be enrolled in or out of the program, and numerous other standard matters. To view a copy of the draft Plan of Operation and Governance, please click here.
3. Hold two public hearings to discuss the Plan of Operation and Governance: The Public Hearings were held on Monday, January 28 and Monday, February 11 at 7:30 p.m. in the La Grange Village Hall auditorium. To view the presentation from the Public Hearing, please click here.
4. Adopt a Plan of Operation and Governance - to view the Resolution and final Plan of Operation and Governance adopted by the Village Board, please click here.
5. Solicit bids from electricity suppliers - bids were open on March 18, 2013.
6. Negotiate and enter into an agreement with a selected provider - the Village entered into a one-year contract with FirstEnergy Solutions. For more information regarding the program, please click here.
7. Public information and implementation of the program is ongoing.
Please view a list of Frequently Asked Questions regarding electric aggregation for more information.
Please note that neither FirstEnergy or the Village will visit your home nor will they call you to ask for personal information about you or your ComEd account. Door-to-door solicitors are required to have a license from the Village. To read more about predatory marketing, please click here.
Additional information regarding alternative electricity rate savings programs as well as links to the Illinois Commerce Commission and Citizen's Utility Board, is available here.
For more information regarding electric aggregation, please contact Andrianna Peterson, Assistant Village Manager, at (708) 579-2315.