City Recommends New Supplier for Electricity Aggregation Program

Submitted by the City of Highland Park

The City of Highland Park, one of eight north shore communities that make up the North Shore Electricity Aggregation Consortium (NSEAC), presented a recommendation to the City Council for a new electricity aggregation contract with the supplier Integrys that would be effective June 1.

Residents in Deerfield, Glencoe, Highland Park, Lake Bluff, Lake Forest, Northbrook, Park Ridge and Skokie who did not opt out of the initial program, have been receiving fixed price electric supply at reduced rates per kWh since June 1, 2012 when the consortium entered into a three-year agreement with MC Squared Energy Services.

Over the past three years, the consortium has saved participating customers more than $30 million collectively; in Highland Park alone, residents have saved more than $6.4 million due to the lower rates offered over the ComEd default rate.

Given the overwhelming success of this three year contract, the City, together with the consortium, sought bid pricing for a second program effort that would begin when the current contract with MC Squared expires May 31, 2015. In November 2014, the consortium sought qualified power suppliers to provide pricing to service the Consortium’s portfolio of customers. The Consortium received two timely responses that were substantively complete. Integrys not only offered the lowest bid, but also offered two additional options: a “free look” at the ComEd default rate as well as a natural gas option similar to aggregation. The free look allows the Consortium to monitor the ComEd rate and if the ComEd rate is lower than the Integrys rate, the Consortium could then use the ComEd rate. This offer will ensure that residents receive the most cost savings as possible.

“The goal of the electricity aggregation program is to ensure that our residents are receiving the best pricing and most favorable contract terms available to us for each program year,” City Manager Ghida Neukirch stated.

“Based on the proposals the consortium received this cycle and also available market research, a contract with Integrys will allow the most cost savings for residents moving forward. Additionally, Integrys’ offer regarding natural gas may allow residents savings before any legislative action occurs regarding this.”

If the City enters into an agreement with Integrys, then effective June 1, 2015, residents will be switched automatically to the new electricity supplier; no action is required. The Consortium’s decision to enter into a new agreement with Integrys does not prevent residents from individually seeking their own Alternative Retail Electric Supplier. Those residents that do not wish to switch to Integrys electricity supply will continue to be able to seek an alternative supplier after the Consortium program contract with MC-Squared ends during the May billing cycle.

Electric aggregation customers will have the opportunity to purchase renewable energy credits (RECs) by opting-in to the Green Power Program. The Green Power Program has been available since June 2012 and allows customers to purchase these RECs for a small additional charge to their per kWh rate. A REC is created when one megawatt hour of energy generated by a renewable source, such as wind power, is placed in the electricity grid.

RECs support clean energy sources. Information on opting-in to the Program with Integrys will be available in the coming months before the contract begins on June 1, 2015. If residents wish to opt-in to the Green Power Program now, residents can do so by contacting MC Squared at (888) 808-7731.