Residents to Receive Lower Electric Rates with a Green Energy Supply!
Posted Date: 7/13/2012
Electric Aggregation Program Opt-Out Period July 13 – July 27
On June 4, 2012 the Village entered into an agreement with FirstEnergy Solutions Corp. for a 24-month term at a rate of 4.78 cents per kilowatt hour with a 100% renewable energy mix. This rate is 42% lower when compared to ComEd’s current price.
Supply + Transmission
Village of Lisle aggregation rate
ComEd supply rate
Your savings off the ComEd supply rate
*Purchased Electricity Adjustment (PEA) varies and is currently 0.5 cent per kWh. FirstEnergy Solutions charge no PEA fee.
As outlined in the State of Illinois electric aggregation legislation and the Village’s Plan of Operation and Governance, all eligible customers have the right to opt-out of the Village’s electricity aggregation program and continue to have ComEd purchase their electricity supply.
Opt-out notices will be mailed out on July 13 by FirstEnergy Solutions and will arrive in mail boxes the week of July 16. The letter will include the Village’s logo and refer to the Village’s electricity aggregation program. View a PDF copy of the opt-out correspondence.
Customers have until July 27 to mail the attached opt-out form. However, customers that would like to leave the program after that date will not be subject to any termination fee.
Customers that do not opt-out will be switched to the FirstEnergy Solution electric supply before the September 2012 meter read date so their electricity supply charge from September usage will be calculated using the rate of 4.78 cents per kilowatt hour.
Questions for FirstEnergy Solutions can be directed to their customer service toll-free number 1-866-636-3749.
June 4, 2012
On June 4, 2012, the Village Board approved a 24-month contract with Ohio-based FirstEnergy Solutions to supply electric and credits from 100-percent renewable sources like wind and solar, while still saving customers about 44% over the current state-approved electricity supplier. Lisle joins a select few other Illinois communities to purchase energy at a substantially lower rate for its residents, while attaining the environmental benefits of renewable energy.
The cumulative savings for Lisle customers over the next two years is expected to be about $5 million.
Through the March 20, 2012 referendum vote, over 60% of Lisle voters requested that the Village of Lisle work to obtain lower electricity supply rates for its residents. With the approval of the referendum, the Village may arrange for the supply of electricity for its residents and small commercial retail customers who have not opted out of such a program.
The Village Board unanimously selected FirstEnergy Solutions, as the electric supply with a 100% renewable energy mix at a rate of 4.78 cents per kilowatt hour as compared to the current state-approved electric supply rate of 8.5 cent per kilowatt hour. The Village received a total of seven (7) bids from state-certified electric suppliers. Electric service will begin under the newly negotiated rate around September 1, 2012. Electricity still will be delivered by ComEd, which will remain responsible for customer service, such as billing and outage response. The only difference consumers will see will be a lower rate on the supply charge line item on their bills. As a reminder, aggregation addresses only one component of a customer’s ComEd bill, energy supply (which is typically 65 to 70% of the electricity bill) but does not effect delivery service charges. Additionally, a transmission charge will no longer appear on customer invoices.
All residential and small commercial business accounts in the Village will be enrolled automatically in the program; however, will be given the opportunity to opt-out of the aggregation program without penalty and remain with ComEd-purchased electricity. The Village will work with FirstEnergy Solutions to notify all eligible electric customers of the electric supply rate, terms and condition and their right to opt-out.
[Electric Aggregation Program Overview & FAQ's]
May 11, 2012
The Village will take the next steps in implementing an opt-out electricity aggregation program by holding two public hearings on a Plan of Operation and Governance for the program on Monday(s) May 21 and June 4, 2012 at 7:00 p.m. in the Board Room of the Village Hall located at 925 Burlington Avenue.
Plan of Operation and Governance [PDF]
Through the March 20, 2012 referendum vote, just over 60% of Lisle voters requested that the Village of Lisle seek lower electricity supply rates for its residents and small businesses. With the approval of the referendum, the Village may arrange for the supply of electricity for its residents and small commercial retail customers who have not opted out of such a program.
This spring, in order to develop and adopt a plan of operation and governance for the electricity aggregation program, the Village will seek public input through two (2) public hearings.
Once the plan is created and adopted, Village staff will work as part of a consortium with other communities or individually with a consultant to seek competitive bids from energy suppliers via a formal Request for Proposals (RFP) process. If a bid is received that meets the goals of the plan, a contract will be negotiated and presented to the Village Board for approval. It is anticipated that the Village would have a program in late summer or early fall, 2012.
Other DuPage County communities also have voted on electricity aggregation; on the March 20 General Election Primary, 15 of the 17 communities voted in favor of seeking alternative electric suppliers.
[Press Release Dated March 9, 2012]
VIDEO: Electric Aggregation - Community Education Program
March 20, 2012 Referendum to Address Electric Aggregation (Your Electric Bill) (.pdf)
On December 19, 2011, the Village Board authorized a referendum question on the March 20, 2012 election ballot for Lisle voters to consider. If approved, it would allow the Village to seek competitive pricing for the procurement of electricity to residents and small businesses.
The referendum question on the March 20, 2012 election asks Lisle voters if the Village should have the authority to seek competitive pricing bids for electric services under a single contract. Specifically, the referendum question will read:
Shall the Village of Lisle have the authority to arrange for the supply of electricity for its residential and small commercial retail customers who have not opted out of such program?
If approved, the Village would work independently or with other area communities collectively to issue a Request for Proposal for competitive electricity prices. If the referendum is approved, the Village will be required to hold two public hearings to discuss a plan of operation and governance for an electric aggregation plan. This will precede any bid for electric supply.
For those who don’t want to wait for the referendum decision to begin saving on electric bills, Clean Air Counts, a campaign created by the Metropolitan Mayors Caucus (of which Lisle is a member), has launched an Energy Savings Program to provide lower rates to residents through Integrys Energy Services. Residents More information about this program is available on the Clean Air Counts website.
FAQs: Community Electric Aggregation
How is community electric aggregation possible?
On August 10, 2009, Public Act 96-0176 amended the Illinois Power Agency Act by providing for the aggregation of electrical load by municipalities and counties. This law authorizes municipalities to develop aggregation programs for the procurement of electricity supply to residential and small business customers. Local governments can now work with community members to purchase lower cost electricity, green or renewable energy, encourage local generation (solar or wind, etc.), and other community initiatives. Municipalities are able to include all residents and small businesses in a Request for Proposal to retail energy suppliers.
Which communities have passed referendums?
Fulton, Campton Hills, Crest Hill, DeKalb, Dixon, Elburn, Erie, Fox River Grove, Glenwood, Grayslake, Harvard, Lincolnwood, Milledgeville, Morris, Mt. Morris, New Lenox, North Aurora, Oak Park, Oakbrook, Polo, Sugar Grove, Wood Dale.
A number of other Illinois communities in addition to Lisle will place the referendum question on the March 20, 2012 ballot.
Will residents notice a difference in service?
No, the only difference is the energy received from the selected supplier and lower, more stable prices. ComEd would continue to deliver energy to homes and businesses. Residents and businesses would also continue to receive a ComEd bill. If residents have an outage or need service, they would continue to contact ComEd.
What if my power goes out – will I need to call the company providing the power?
No. ComEd is responsible for ensuring that electricity flows through its distribution network to all homes and businesses in Lisle. Aggregation would not change how ComEd responds to outages.
Where does the electricity come from?
Using forecasting and purchasing methods for commodities, the selected supplier procures much of the energy supplied on the open market to find the best price for the aggregation group.
What component of the electrical bill will aggregation affect?
Aggregation addresses only one of the three components of an electricity bill. The three components are supply (where the power comes from), transmission (getting the supply from its point of origin or from the high voltage grid), and distribution (getting the electricity from the substation to the consumer’s meter). Aggregation concerns only the supply component, which is typically 65 to 70% of the electricity bill. The transmission and distribution parts of the bill will be unaffected by aggregation.
What if residents or small businesses don’t want to participate?
Residents and small businesses may “opt-out” of the program if the referendum is passed. Before the aggregation program begins, all residents and small businesses would receive an opt-out notice in the mail and given a date by which they must return the opt-out notice or call a number to request to be opted-out of the program. Residents using a third party supplier or residents moving to Lisle from outside the community would not be automatically included; they would have to “opt-in.”
What is considered a “small business” eligible for the aggregation program?
Small businesses are those which utilize 100 kilowatts of electricity – comparable to a fast-food restaurant. The amount of electricity a property utilizes can be obtained on an electricity bill.
Will customers be able to pursue clean, green or renewable energy?
Renewable, also known as green or clean energy, is energy which comes from natural resources such as sunlight and geothermal heat. The Village may include in its bid documents options for renewable energy.
How does electrical aggregation benefit a resident and small business?
Electric aggregation combines the retail electric loads of customers in a community. By combining the loads of its residents, the community can leverage the buying power of thousands of residents and small businesses. This combined buying power typically provides lower, more stable rates and improved service from suppliers.
I have received mailings from retail electric suppliers offering lower electricity rates now. What should I do?
The earliest the community aggregation program is likely to begin is summer 2012. Consumers who decide to switch to a retail electric supplier before the community program is available should consider several aspects of the retail supplier’s offer. Consider the following-
1) Length of contract. Many retail suppliers require a minimum 1-year contract, which would prevent a customer from getting the community’s aggregation rate until the contract ends.
2) Termination fees. Look at the cost of early termination. Some companies charge fees and others do not.
What if customers already have a contract with an electric supplier?
Residents and small businesses may “opt-in” to the Village’s program when their contract expires, or upon terminating their existing contract. Such termination would likely result in a termination fee from the supplier, so one would need to determine if it is advantageous to terminate a contract and join the Village’s program.
How long will the Village’s contract be?
The Village would most likely enter into a 12-month contract at a fixed rate.
So, what options do residents and small businesses have?
Subject to approval of the referendum, when the Village selects an electric supplier, the supplier will contact each resident and small business property regarding the program to provide an opportunity for you to decline (opt-out) participation. If you do not specifically opt-out of the program, you will be included in the Village’s aggregate program and receive the electric rate from that program.
You could start saving on energy bills now instead of waiting months for the Village’s electric aggregation program to begin, by switching to a retail supplier (i.e. the Energy Savings Program through the Metropolitan Mayors Caucus and the Clean Air Counts Program). If the Village’s referendum is approved, you may “opt-in” to the community aggregation plan when your new supplier’s contract expires, or if you decide to terminate that contract.
If you take no action : (1) you will be automatically enrolled into the Village’s electric supply program if the referendum passes, (2) you will continue to be supplied electricity via ComEd, at their rates, if the referendum fails to pass.
If voters approve the referendum, how long will it be before the program is implemented?
State law requires certain steps be followed to approve and implement the Community Choice Aggregation Program. If voters give the Village the authority to pursue aggregation, two public hearings must be held to gather citizen input for an aggregation plan that outlines goals such as savings targets and the mix of energy generation sources. Once the plan is created and adopted, Village staff would work with a consultant to seek competitive bids from energy suppliers via a formal Request For Proposals (RFP) process. If a bid is received that meets the goals of the plan, a contract would be negotiated and presented to the Village Board for approval. It is anticipated that the Village would have a program in late summer 2012.
For more information contact Administrative Services Director Eric Ertmoed via email or (630) 271-4144.