A statewide consumer advocacy group is urging Morton Grove residents to explore their options when it comes to their electric bills after the village ended its electricity aggregation program earlier this month.
Morton Grove residents and small businesses that opted into the program now have to switch back to ComEd roughly four years after voters approved a referendum to create the electrical aggregation program in 2012.
Village Administrator Ralph Czerwinski said the program, which enabled village officials to negotiate the purchase of electricity from alternative suppliers on behalf of small businesses and residents, was enacted when ComEd’s rates were much higher. Now that those rates have dropped, he said, the aggregation program no longer provides savings and is actually more costly than ComEd’s rates.
In the wake of the switch, the Citizens Utility Board (CUB), an Illinois nonprofit utility watchdog group, is encouraging Morton Grove residents to look into alternatives to ComEd’s flat rate offerings. David Kolata, executive director of CUB, said residents have the opportunity to save an average of 15 percent on their electric bills if they take advantage of ComEd’s hourly pricing program.
Traditionally, he said, customers pay a flat rate for their electricity.
In contrast, hourly pricing gives consumers access to market-based electricity rates, which are oftentimes much lower than the flat rate, especially during non-peak nighttime and weekend hours, he said. In some cases, Kolata said, the non-peak rates are actually negative, meaning customers are being paid to consume electricity when supply outpaces demand.
In peak hours, however, the cost of electricity can be much higher, he said. Residents can avoid paying steep bills by using smart thermostats and programming them to reduce air conditioning during high-rate periods. Consumers also can take advantage of low rates by turning on their air conditioner, dishwasher or doing their laundry during late night and overnight hours.
A few small changes in consumer behavior can result in significant savings through the hourly pricing program, Kolata said.
“If you’re home 24/7 or have health issues, (hourly pricing) may not be the right rate for you. But more and more, our analysis shows the majority of customers could benefit by being on a rate like real-time pricing,” Kolata said.
In September 2014, Lincolnwood officials also ended its 4-year-old aggregation program at the time and switched residents back to ComEd because the company provided the lowest rate offered, village officials have said.
It’s likely Niles also soon could do the same and switch back to ComEd, once the village’s contract with IDT Energy runs out at the end of May 2017, Village Manager Steve Vinezeano has said.
To learn more about ComEd’s hourly pricing program and how to sign up for it, visit CUB’s website at www.CitizensUtilityBoard.org or ComEd.com/HourlyPricing.
Lee V. Gaines is a freelancer reporter for Pioneer Press.