Electric Suppliers Solicit Ahead of Huntley Aggregation Program

Huntley’s electric aggregation program is moving into the next phase of planning, just as an electric supply company is going door to door trying to sign up residents at rates that may not be as good as the one the village may be able to negotiate.

Voters approved an electric aggregation program in the March primary that allows the village to bundle homes and small businesses together for purposes of negotiating a bulk rate with an electric supplier. Huntley joined the Northern Illinois Governmental Electric Aggregation Consortium, which brings together other communities and gives the consortium a bigger bargaining chip.

While Huntley residents automatically are enrolled, they can opt out of the program and use an alternate retail electric supplier. ComEd would continue to be the distributor.

Huntley’s website advises residents, “If you choose to go with one of these electric suppliers, you will be unable to be included in the village’s program.”

One of those electric suppliers is Spark Energy. The company has been trying to sign up consumers prior to the village launching its electric aggregation program, according to officials and residents.

Huntley officials have tried to let residents know that companies like Spark Energy at not part of the village’s aggregation program, Village Manager Dave Johnson said.

Northern Illinois Governmental Electric Aggregation Consortium’s plan is to select a supplier on April 20. The supplier then will mail out opt-out letters by May 4. Anyone who does not want to be part of the program or has an existing contract with a supplier must send in the opt-out letter by May 28.

ComEd, the distributor, will send confirmation letters to residents who will be participating.

The program is expected to be running June 1.

Johnson said the village cannot stop suppliers from marketing in the area and telling residents they can save more money by signing up with the companies.

Mark Burns, president of Independent Energy Consultants Inc., which is certified by the Illinois Commerce Commission, declined to submit a bid on Huntley’s electric aggregation program.

“I don’t know if it is coincidence or not. I suspect they are now out there trying to sign people up prior” to the village launching its program, Burns said.

Huntley cannot tell residents not to sign up for an alternate retail electric supplier. These suppliers do have guidelines issued by the ICC when signing people up, a spokeswoman said.

“I don’t think it’s a good business model long-term if you want to do work with municipal aggregation,” Burns said of the company’s efforts. “We’ve seen suppliers try to take advantage of the opportunity, where they didn’t win a competitive bid or chose not to bid and target customers on their own.”

“I have no idea if that is what is going on right now,” Burns said.

“Our experience is if you have got an individual and a buying group getting pricing the same day under the same market conditions, the buying group is going to get a better rate,” Burns said.

Huntley residents should know the village’s rate will be announced in a few weeks. No one will be going door to door; letters will be mailed from the supplier, he said. “Anyone accepting an offer on their own are free to do that,” he said.

“But it will probably be wise they are not locking themselves into any long-term contract with an early termination fee.”

Residents also can ask suppliers to explain the terms and conditions of the contract and ask other questions, he said. Typically, consumers have a period during which they can rescind the contract, he said.

If residents have questions about any alternate retail electric supplier, the ICC has information on its website.

Spark Energy, based in Houston, is a certified supplier on the ICC’s website, however, it is not accredited by the Better Business Bureau, according to the agency’s website.

The Better Business Bureau’s website states the accreditation was revoked in August 2011 due to a violation of Better Business Bureau standards that it “make known all material facts in both written and verbal representations, remembering that misrepresentation may result not only from direct statements but by omitting or obscuring relevant facts.”

It’s not unusual for alternate retail electric suppliers to be marketing in the same towns where electric aggregation programs are being launched, said ICC spokeswoman Beth Bosch. Spark Energy has been marketing in this area for a while. Companies started soliciting residential customers a few years ago, she said.

Spark Energy is accredited by the ICC. Alternate retail electric supplier marketers must identify themselves clearly and explain the terms and conditions of the contract, Bosch said.

The ICC’s website has tips on making the right choice and how to check on alternate retail electric suppliers, she said.