Savings on Electric Bill Arrive in June

Lake Forest and Lake Bluff residents soon will have an opportunity to purchase their electricity as part of a consortium of eight communities, which is expected to reduce the cost of power between 20 percent and 30 percent or as much as nearly $200 per year, according to officials from both communities.

Late last year, Lake Bluff and Lake Forest joined forces with Highland Park, Deerfield, Skokie, Park Ridge, Northbrook and Glencoe to form the to bargain with electric suppliers pending passage of the referendum.

On March 20, Lake Forest and Lake Bluff each approved an electrical aggregation referendum with more than 70 percent of the votes in both communities.

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Monday night, officially passed its electrical aggregation ordinance and a plan of operation, according to the Illinois Power Agency Act. is expected to follow suit at its City Council meeting Monday, April 2.

Lake Bluff Village Administrator Drew Irvin said he hopes the program will be in place by June and no later than July. Commonwealth Edison will continue to deliver the power through its existing infrastructure. The consortium will purchase only the electricity.

In anticipation of passage of the referendum, the eight communities issued a request for proposals to choose a supplier. MC Squared was chosen as the representative.

Irvin said the actual agreement with MC Squared is a three-year contract.

“As we get to the end of every 12-month period, we can look at whether the rates are better than what the ComEd default rate will be,” Irvin said. “The village and residents will be always be better off than the ComEd default rate because if MC Squared can’t beat it or meet it, the agreement falls out.”

The consortium and MC Squared will monitor the market and select the best possible rate during the first half of April, according to Irvin. They do not want to take any action ahead of time, which could push up the rate.

After the rate has been secured, Lake Forest and Lake Bluff residents who have not signed their own contract with an electric supplier will receive a letter from the city or village explaining their options. If people do not specifically opt out of the program during the 21-day opt-out period, they will be included.

Irvin said there will be a toll-free number, a website and literature available in multiple languages to assist residents with questions.

Irvin said a second opt-out letter will come from ComEd as well.

Irvin said there will be fees assessed for people opting out of the program, and that’s after the initial 21-day opt-out period. The purpose of the fees is to avoid people shopping the marketplace.

Trustee Marina Carney noted she had received a call from ComEd that its rate would be decreasing. Irvin said residents likely will continue to receive calls from competing electric companies.

“There is nothing the village can do to stop those types of phone calls,” Irvin said. “This is a very aggressive marketplace.”

Regardless of the choice electric consumers make, they will continue to receive their bill from ComEd. ComEd will pay MC Squared.

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