The Village began an extensive process to review the possibility of creating a municipal electric aggregation program in the fall of 2011. After much public discussion, the Village Board determined it was in the best interest of residents to conduct a referendum regarding the creation of an aggregation program in November 2012. The referendum was approved by approximately 70% of voters on November 6. Following the passage of the referendum, the Village sought proposals for electricity supply from certified alternative retail electric suppliers. The Village Board reviewed these proposals at the November 26 Board Meeting, and approved a contract with Verde Energy USA. More information on what aggregation is and details specific to the Village's program can be found below.
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.
What are the details of the Village's program?
The Village approved an 18 month contract at the November 26 Board Meeting which includes 100% green energy (renewable energy certificates) at a rate of 4.981 cents/kWh, an approximate savings of 40% from ComEd’s price to compare of 8.32 cents/kWh. Click here to view the Village's press release on the contract.
Who is eligible to participate in the program?
All residents that have not opted out of ComEd's electricity supply service are eligible to participate and will be automatically included with the Village's aggregation program (residents will have the opportunity to opt-out before December 20 if they do not wish to participate).
Residents that have already switched to an alternative electricity supplier (such as Integrys, Spark Energy, Bluestar Energy, etc.) will not be included in the program, BUT, may opt-in if they wish to participate. A letter will be sent the first week of December to these residents alerting them of the program, and providing detail on how to participate if they would like to opt-in. REMINDER: Some alternative electric supplier contracts have early termination fees, so check with your supplier before opting in to the Village’s program.
Small businesses will also be automatically included in the Village's aggregation program, unless they wish to opt-out. Small businesses are defined for the purposes of aggregation as those that use 15,000kWh per year or less. Any business utilizing more than 15,000kWh per year cannot be included in the Village's aggregation program, but may have an opportunity to seek out an individual contract with an alternative electricity supplier.
What do I need to do to participate in the program?
You need to do nothing to participate in the program. All eligible residents and small businesses will be automatically enrolled in the program unless they "opt-out." Before the aggregation program begins, all residents will receive notice to opt out of the program. Notice will be received via a Village letter sent out the first week of December, as well as a second letter from ComEd later in December.
Impact – How will this affect me?
The only impact residents will see resulting from the aggregation program will be a lower electricity supply rate on the monthly bill. ComEd will continue to bill all residents on a monthly basis, and continue to be 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.
Verde - More Information on the Village's Electricity Supplier:
Verde is an independent electric supply company based in Norwalk, CT
Verde is licensed by the public utility commission in the states of Illinois, Connecticut, New Jersey, Ohio & Pennsylvania serving both residential and business customers
Verde services over 50,000 municipal aggregation customers in the Com Ed region of Illinois.
Verde sources power through short and long-term supply agreements with major energy companies. Renewable energy sources are part of these supply agreements
Verde is committed to providing strong savings and high quality customer service
What savings will I see if I participate in the Village's Aggregation Program?
Residents that participate in the program will see a rate reduction on the supply portion of the electricity bill from a rate of $.08319 cents/kWh to a rate of $.04981 cents/kWh. This is a 40% savings on the supply portion of your bill. Please note, electricity bills are separated between the supply and delivery of electricity. The aggregation program savings are for the supply portion, not delivery portion. For the typical residence utilizing 800kWh per month, it represents an approximate $30 monthly savings.
Where can I find more information on the Program and Opt-Out Resources?
www.ilmunipower.com/glenellyn or 800-241-0295.
Solicitors - NOT Affiliated with the Village of Glen Ellyn
There is at least one company engaging in door-to-door and phone solicitation as an electrical supplier in the Village. These companies are not affiliated with the Village's Electricity Aggregation Program that has been publicized over the last few weeks. Any company asking you to "sign-up", or make any advance payments, is not affiliated with the Village of Glen Ellyn proposed Aggregation Program.
How can my business receive savings on electric supply if it is not eligible for the Village's aggregation program?
If your business utilizes 15,000kWh per year or more, you are ineligible to participate in the Village's aggregation program, per the ICC. However, businesses have the option to contract individually with alternative retail electric suppliers and receive a lower rate than ComEd. More information on rate options is available at www.pluginillinois.org. Additionally, businesses may consider the Clean Air Counts Energy Savings Program for an individual contract. More information is available here.