Electric Aggregation Program

About the Program
Round Lake Beach voters approved a program called Municipal Electric Aggregation via referendum in March of 2012. Through aggregation, the Village gained group-buying power for the purchase of electricity. The average participating household has saved $270 (in the first 18 months of the 24-month program) for a community-wide total of $1,500,000. Savings will continue through summer until August 2014 meter read dates, when the program term expires.

May 2017 Update

The Village again this year sought competitive bids and the determination was made that the default ComEd rate was better than the lowest bid received by suppliers. To be clear, “ComEd rate” is a misnomer. Following deregulation of energy supply in 2007, ComEd has not generated any power, but only operates network stations, wires serving homes and businesses, and oversees billing. A State agency, the Illinois Power Agency, seeks bids from various suppliers and establishes power supply for any ratepayer that does not seek an individual supply contract or a municipal aggregation program contract. The results received by the Village on May 12, 2017 follow, all rates and terms are below the new ComEd rate to take effect June 1, 2017. To be clear, the ComEd rate varies from month to month, but 7.185¢ is the expected average base rate for the new Energy Year.

Supplier

Term (in months)

Fixed Rate per kWh

Default “ComEd rate” set by the

Illinois Power Agency:

12:  7.185¢

Constellation Energy Services

12:7.590¢                    13:7.606¢                         24:7.899¢                         36:7.946¢

 

 

Dynegy Energy

12: 7.555¢      
14:  7.394¢    
24:  7.847¢    
36:  7.855¢

 

Eligo Energy

12:  7.530¢      
14:  7.330¢    
24:  7.730¢    
36:  7.700¢

 

 

MC Squared

12:  7.480¢                 24:  7.600¢               
36:  7.800¢



July 2015 Update

The residential aggregation program has been in place since August 2012 through the final meter reads in August 2014.  Since then, there has been a convergence of ComEd rates to open market rates whereas ComEd rates have been equal – and in some cases better – than what could be found in the open market.  Very recently, there has been a dip in open market rates and the Village of Round Lake Beach, through its consultant NIMEC, received multiple “indicative” bids from a variety of suppliers.  Although the open market pricing has indeed fallen from a few months ago, it hasn’t fallen quite enough to make a residential opt-in program worthwhile.


We are continually monitoring market rate changes along with any legislation that could potentially impact ComEd pricing. The Village will work with NIMEC in the case that open market rates happen to drop to more appealing levels.

June 2014 Update - Village Electric Aggregation Program Suspended

Following a competitive bidding process in early June, ComEd offered the lowest priced energy option for the upcoming year at just under 8¢ per kwh.  The next lowest bidder for a 1-year program was 8.396¢.  As a result, the Village has decided to suspend the Electric Aggregation Program for a year.  Residents enrolled in the Village’s program will receive a letter from ComEd in July stating that their supply service will be switched back to ComEd at August meter readings. This “Confirmation of Drop” notice will state the ratepayer has two billing periods in which they may choose to switch to another supplier or otherwise will be required to remain on ComEd electric supply service for a total of twelve months from the effective date on the letter. Residents are advised that they may switch to another supplier only within that first 60-day window. No action is needed to be moved to the ComEd supply rate.

Residents should beware of door-to-door solicitors, direct callers or direct mail pieces regarding electric supply and are advised to review contract terms to understand any floating rates or early termination fees. It is recommended that ratepayers never release their account number to a solicitor unless they have decided to move to that supplier.

Contact Information
The Illinois Commerce Commission has established a resource for residents to learn more about supplier choice: Pluginillinois.org. Residents with questions about the current contract may call the Village’s consultant, NIMEC at 800-727-3820. (When calling NIMEC, please leave your call back number and you will be contacted within 24 hours.)