What is Electric Aggregation?
Municipal electric aggregation allows municipalities to pool residential and small commercial retail customers together for the joint purchase of electricity. By creating these economies of scale, a community can leverage the buying power of thousands of residents and small businesses in an effort to obtain a lower price for the supply of electricity.
There are two main components to electricity: supply and distribution. The supply of electricity is currently generated at power plants, purchased by ComEd, and then transmitted and distributed to homes and businesses through ComEd’s infrastructure and power lines. With aggregation, a municipality can seek a lower price for the purchase of electricity with alternative suppliers; however, ComEd would continue to distribute electricity through its infrastructure.
Legislation – Why is this possible?
In 2009, the state of Illinois amended the Illinois Power Agency Act with Public Act 96-0716 to deregulate the electric market and provide for the municipal aggregation of electricity. Through deregulation, ComEd is no longer the only company that supplies electricity, but continues to provide power generated by others through its distribution system.
Process – How does it work?
In order for the Village to create a municipal aggregation program, a referendum must be approved by a majority of voters. The Village Board approved a resolution at the August 16 Village Board Meeting providing for the referendum question to appear on the next ballot on November 6, 2012. The referendum asks:
"Shall the Village of Glendale Heights 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?"
The Village will also be holding two public hearings and considering approval of a plan of governance related to electric aggregation this fall. If the referendum is approved, the Village can solicit proposals from suppliers who are licensed as alternative retail electric suppliers in the State of Illinois. Proposals are reviewed, and the Village determines if and who it will enter into an agreement with for energy supply. If favorable pricing does not exist, the Village will not enter into an agreement, and remain with ComEd. Based on the timing of the above process, a Village aggregation program would not become effective until 2013.
Impact – How will this affect me?
If an aggregation program is created, all residents and small businesses will be automatically enrolled in the program unless they "opt-out." Before the aggregation program begins, all residents would receive notice to opt out of the program.
Regardless of whichever option residents and businesses chose, ComEd remains the utility provider delivering electricity to homes and businesses. Residents would continue to receive a ComEd bill and would continue to call ComEd in case of an outage or service need. The only difference would be a change in the supply rate of the electricity bill.
For more information, please visit the below links.
Plan of Operation and Governance:
Public Hearing Notice:
Frequently Asked Questions: