Kane County’s electric aggregation program for rural residents is off to a great start, and several municipalities in Kane County are either continuing electric aggregation programs or looking into them.

This week, the city of Elgin is extending its electric aggregation program by three months and sending letters to residents to let them know about the options and savings.

As part of the city’s municipal electric aggregation program, Elgin entered into a three-month contract extension with Constellation, Inc., an Exelon company. The contract extension allows Elgin residents to receive a reduced cost for their electric services over what is currently available through ComEd. In addition, Constellation also offers interested residents a 100-percent-renewable-energy option.

Letters have been sent to Elgin residents by Constellation notifying them of the 7.09 cents per kilowatt hour rate, which will be good for the next three months. Residents are automatically enrolled with Constellation and will receive the pre-negotiated low rate. Individuals or eligible small businesses that wish to purchase 100 percent renewable or “green” energy from Constellation may do so at the rate of 7.19 cents per kilowatt-hour.

Residents and eligible small businesses may opt-out of the aggregation program at no charge, with the options of remaining with ComEd or seeking another independent supplier.

Constellation’s current contract with the city was set to expire this month (September 2015). However, by law the city needs to give ComEd at least a 90-day notice prior to switching suppliers. Since the “capacity” charges were just released on Aug. 22, companies that supply alternative retail energy were reluctant to make aggressive bids because they did not know the effect of the new capacity charges.

By December, companies like Constellation will have more certainty about what prices they could offer, so the city could then solicit the most competitive pricing. If not, residents would go back to ComEd’s pricing. By agreeing to a three-month extension of services, the city ensures that it can offer its residents the best possible pricing.

What is municipal electrical aggregation?

Municipal electric aggregation allows local governments to bundle together or aggregate, residential and small commercial retail electric accounts and seek bids to secure consistent pricing.

History of Aggregation in Elgin

In 2012, Elgin voters approved a referendum for Elgin to participate in municipal electrical aggregation. Currently, Constellation, Inc., an Exelon company, is under contract with the City of Elgin to offer residents another option for their electricity supplier.

More Information

Dial 311 (or 847‐931‐6001 if outside Elgin) 7 a.m. to 5 p.m. Monday through Friday.

Read more about Elgin’s electric aggregation on the city’s webpage.

SOURCE: city of Elgin press release