Morton Grove is pulling the plug on its electricity aggregation program next month.
The move means the village, which started an electricity aggregation program after voters approved a referendum in 2012, now will switch back to ComEd for certain electricity service after cutting ties with the company and switching to an aggregate supplier for its program.
Illinois law allows municipalities to negotiate for the purchase of electricity for its residents and small businesses via an aggregation program.
Before the local referendum that established the program was approved, ComED electricity rates were significantly higher than what the village could get for residents via aggregation, said village administrator Ralph Czerwinski.
After the village instituted its aggregation program, residents and other eligible subscribers saw a combined savings of over $1.8 million a year, which translates to nearly $250 a household in Morton Grove, he said
Now, however, the rates offered by ComEd “are the same or less than what we can buy from aggregation companies,” Czerwinski said.
“There is no reason to continue this,” he said. “We are opting to make a smart move for our residents to not use aggregation because the rate was found to be higher.”
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The most recent ComEd rates are cheaper per kilowatt hour than what the village can get on the aggregate market, Czerwinski said.
Residents affected by the switch should receive a notice this month from ComEd informing them that their service will be switched to the state’s largest electricity supplier in September. No action is required on the part of the residents, Czerwinski said.
The Village of Lincolnwood made a similar switch two years ago, according to a press release from the municipality. According to the release, Lincolnwood was one of the first Chicago area suburbs to institute an aggregation program in 2010 and were able to achieve a savings of 30 percent over the rates offered by ComEd.
In September 2014, Lincolnwood officials also switched back to ComEd because the company provided the lowest rate offered, according to the release.
It’s likely Niles also could follow suit and switch back to ComEd, once the village’s contract with IDT Energy runs out at the end of May 2017, said village manager Steve Vinezeano.
Niles voters approved a referendum allowing the village to solicit bids from electricity suppliers on behalf of residents and small business in April 2013.
The village inked a two-year contract with IDT Energy in April 2015. The company offered a fixed-rate lower than what ComEd was charging at the time, according to village documents.
“We don’t plan on renewing it because there’s no more value left in it,” Vinezeano said of the village’s aggregation program.
He said the village will switch back to ComEd next June “unless something happens between then and now” that would make the aggregate alternative a more financially appealing choice. He said the village will embark on a campaign to make residents aware of the change when it happens.
Residents can opt of the program any time and switch back to ComEd or another supplier with no penalties, Vinezeano said.
Residents always have the option to select a supplier of their choice, but Vinezeano said they should be aware of “shady” companies who may encourage them to sign on to long-term contracts for their electricity supply. He said some of these solicitors will offer contracts containing baked in fees, variable rates and penalties.
A Morton Grove press release also warns residents to “beware of door-to-door solicitors, or direct calls or direct mail pieces regarding electric supply.”
Morton Grove residents with questions about the suspension of the aggregate program are encouraged to call the municipality’s electric aggregate consultant, Northern Illinois Municipal Electric Collaborative, at 1-800-727-3820.
Lee Gaines is a freelancer reporter for Pioneer Press.