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Dozens of suburban towns could be getting into the electricity game this year.
In less than two months, voters will decide of they want their towns to shop around for better deals with utility companies on their behalf.
Two years ago, Illinois passed a law letting towns seek out contracts with electric utilities. Since then, at least 19 towns have dropped ComEd for an alternative provider, according to the Illinois Commerce Commission.
Now, this spring, 16 DuPage County communities, several in Cook County andl of unincorporated Kane County — though not Geneva and St. Charles — will have the option on the ballot.
On March 20, voters will decide if they want to approve an “electric aggregation program.”
If the referendum passes, the town would be able to purchase electricity jointly on behalf of residential and small business customers. Any resident can opt out. On behalf of those in the program, local leaders would be able to choose an electricity provider offering the lowest rates and best contract terms, according to proponents of the law.
The towns that have introduced aggregation already include Oak Brook and North Aurora; most are in the Chicago area. All are in ComEd territory, but now they receive their electricity from one of the dozens of other options — First Energy Solutions, for instance, or Direct Energy.
The program does not cut ComEd out of the equation completely; the utility still operates the power grid.
“The customers will stay pay a delivery charge to ComEd. The power will come via their lines,” Beth Bosch, a spokeswoman for the Illinois Commerce Commission, said in a recent interview. “The aggregation is strictly about the price of the commodity — electricity.”
Towns pushing for the referendum, have reported potential savings of up to 20 percent, but that is not guaranteed. In many towns, officials have acknowledged that savings could narrow once ComEd renews its rates in a competitive market.
“It all sort of depends on the price of energy, and that goes up and down,” Bosch said.
The trend could also lead to market volatility several years down the road.
Currently, with ComEd as the premier provider, utility rates are locked in and subject to state regulation.
If enough municipalities create aggregate programs, and millions of customers opt out of ComEd, the state could be moved to deregulate, according to the commerce commission.
Dozens of suburban towns could be getting into the electricity game this year.
In less than two months, voters will decide of they want their towns to shop around for better deals with utility companies on their behalf.
Two years ago, Illinois passed a law letting towns seek out contracts with electric utilities. Since then, at least 19 towns have dropped ComEd for an alternative provider, according to the Illinois Commerce Commission.
Now, this spring, 16 DuPage County communities, several in Cook County andl of unincorporated Kane County — though not Geneva and St. Charles — will have the option on the ballot.
On March 20, voters will decide if they want to approve an “electric aggregation program.”
If the referendum passes, the town would be able to purchase electricity jointly on behalf of residential and small business customers. Any resident can opt out. On behalf of those in the program, local leaders would be able to choose an electricity provider offering the lowest rates and best contract terms, according to proponents of the law.
The towns that have introduced aggregation already include Oak Brook and North Aurora; most are in the Chicago area. All are in ComEd territory, but now they receive their electricity from one of the dozens of other options — First Energy Solutions, for instance, or Direct Energy.
The program does not cut ComEd out of the equation completely; the utility still operates the power grid.
“The customers will stay pay a delivery charge to ComEd. The power will come via their lines,” Beth Bosch, a spokeswoman for the Illinois Commerce Commission, said in a recent interview. “The aggregation is strictly about the price of the commodity — electricity.”
Towns pushing for the referendum, have reported potential savings of up to 20 percent, but that is not guaranteed. In many towns, officials have acknowledged that savings could narrow once ComEd renews its rates in a competitive market.
“It all sort of depends on the price of energy, and that goes up and down,” Bosch said.
The trend could also lead to market volatility several years down the road.
Currently, with ComEd as the premier provider, utility rates are locked in and subject to state regulation.
If enough municipalities create aggregate programs, and millions of customers opt out of ComEd, the state could be moved to deregulate, according to the commerce commission.
