Tiny Turnout for Electric Aggregation Hearing

On Wednesday night, village leaders held the first of two public hearings on their plan for electric aggregation. They discussed the ins and outs of the proposal, which would see the village join with other municipalities to try to obtain lower electric rates for all residents and some businesses.

Only one of those residents was in attendance, however, despite the fact that virtually every ComEd customer who lives in Montgomery will automatically be opted into the program, should trustees pass it on May 14.

In March, Montgomery voters in both Kane and Kendall counties approved a referendum allowing village leaders to negotiate with the 24 licensed suppliers of electricity in Illinois, to obtain lower rates for residents and small businesses as a whole.

Montgomery plans to join with the Northern Illinois Municipal Electric Collaborative, a group of 140 municipalities, with the goal of reducing the supply portion of your electric bill by more than 40 percent. 

Sharon Durling of NIMEC was on hand Wednesday to answer questions. She said NIMEC is currently working with 61 Illinois cities and villages who have passed electric aggregation, and taken 15 of them to bid. She said they have all seen savings on the supply portion of their electric bills of more than 40 percent, and close to 50 percent.

ComEd’s current rate is 7.73 cents per kilowatt/hour, Durling said, and NIMEC has been able to secure rates as low as “four cents and change.”

On behalf of Montgomery, NIMEC will seek out the cheapest rate offered by any licensed electricity provider in the state. The village can then sign a one-year, two-year or three-year deal, at a fixed rate.

Every home in the village, and every business in the 0-100kW range will be included, unless they already have a contract with an electric provider other than ComEd. Everyone will be given a chance to opt out, if they choose.

ComEd will continue to deliver electricity, and send out bills. The only change you should see will be a reduction in the supply portion of your bill, which makes up about 70 percent of your overall electric charges each month. ComEd does not supply electricity, only deliver it, and will work with any supplier, Durling said.  

Mike Pubentz, Montgomery’s director, presented a timeline for the village’s first foray into electric aggregation. The second public hearing will be held on May 14, and trustees will vote on the ordinance that same night. The village will go out to bid on or around May 23.

Pubentz said the opt-out period would occur in June, and last at least 14 days. Residents and business owners would receive a letter telling them how to opt out, should they choose to do so. In August, the village should begin receiving electricity from its new supplier, whomever that turns out to be, and the newly-reduced bills should begin arriving in September, Pubentz said.

Greg Nelson, the only resident on hand for the public hearing, asked whether the village will see a reduction in tax revenue from the lowered utility bills. But Durling said residents and businesses are taxed on usage, not on the amount paid, so the village’s tax revenue should stay the same.

Nelson also suggested creating a comprehensive plan to deal with utilities when they drop the ball on service. Durling said utilities are already heavily regulated by the state.

The next public hearing will be held on Monday, May 14, as part of the regular Village Board meeting at , 200 N. River St. For more on electric aggregation, read .