Electricity Aggregation: What Comes Next
Residents passed a referendum to allow the village to seek lower electricity rates, but action in Springfield could hold up the process.
Although voters passed a referendum Tuesday to give the village authority to seek cheaper and aggregated electricity rates, some legislation in Springfield could hold up the process a bit until residents get a break on the utility bill.
About 60 percent of voters favored the referendum on Election Day, and now the village will work with the Northern Illinois Municipal Electric Cooperative to educate residents and find the best option for the village.
"I'm glad it passed," Mayor Tim Baldermann said. "But we still have to keep educating our residents. I think that even though we did a good job of getting the word out, there are still some people who don’t completely understand it."
The state deregulated the generation of electrical power in 1996, giving residents and the businesses the option to move from ComEd to lower-cost suppliers. And though about 76 percent of the commercial market has moved away from ComEd, few residents have because suppliers could only offer an opt-in program.
New Lenox joined 18 other Chicagoland municipalities out of 23 voting on similar referenda, and can enter an opt-out program in which all residential accounts within village limits would be moved to an electricity supplier of the village's choice. Residents could have the option to stick with ComEd, but it's important to know that ComEd is currently only a distributor of electricity, not a provider.
And while village officials are optimistic they'll lower rates, some state legislation could hold up the process. A key component is that ComEd is prohibited from releasing account information to electricity suppliers, NIMEC Director David Hoover said. That would be essential if the village switched provider, because ComEd would still handle billing but the new provider would need account information.
"If the (Illinois Commerce Commission) allows this quick fix, then we’re full steam ahead," Hoover said.
Besides clearing that hurdle, the village and NIMEC are also required to hold two public hearings to help educate residents about the various options, including the opt-out program residents can take part in if they don't like the decision the village makes. Dates are not yet set for the public meetings.
"The purpose of the public hearings is just to familiarize the residents with the program and how it’s going to work," Hoover said, adding that he hopes there would be some indicative pricing to give the residents.
Bids would then be sent out, and the Village Board will eventually be presented with the option that meets requirements the village will lay out. For example, Baldermann said the village will request to keep the monthly budgeting option currently allowed.
"Whatever we think needs to be part of the proposal, we’ll let NIMEC know so when they go out there we can get the best choice for the residents," he said.
If residents are unhappy with their electric bills, they have the option to switch to another supplier right now. But Baldermann suggested waiting for the village aggregate to get the cheapest prices possible. Hoover hopes that residents could start seeing lower rates by August or September if everything goes as planned.
"They can always make that change, but we think it would be better to buy in bulk and get the cheapest rates," Baldermann said.
For more information and video explanations of the referendum, see our 2011 Election Page.
US Veteran Energy LLC
2:35 pm on Sunday, April 10, 2011
Being a member of the Chamber of Commerce in New Lenox and the Chicago Southland Chamber of Commerce I will be offering my services to all the villages that have currently passed the Municipal Aggregation referendum. Nimec is not the only game in town. I offer transparency and a larger pool of customers in 6 states. US Veteran Energy offers the only fully automated electric clearance house to purchase a new supplier for free. Nimec offers no such options and charges villages to use archaic services. Currently pricing most business electricity at .02 cents less then ComEd’s current rate.
Gail R. Campbell
11:20 am on Sunday, April 17, 2011
The Northern Illinois Municipal Electric Cooperative (NIMEC) appears to be the darling of a number of municipalities who are trying to help residents save on their electric bills. But neither NIMEC, nor its associates, the Illinois Municipal Aggregation of Electric and Progressive Energy Services (http://www.electricaggregation.org), are registered to do business under their assumed business names with the Secretary of State’s office. As of January, NIMEC, located in Prospect Heights (DAVID A HOOVER 417 CHERRY CREEK #250 PROSPECT HTS 60070), was not registered to do business in Cook County, either, under its assumed business name. Per public records at the Secty. of State’s office, NIMEC, #64953931, was dissolved on “04-30-09” without ever submitting required financials.
Per information at http://www.zoominfo.com/search#search/profile/person?personId=7009436&targetid=profilej, NIMEC is an energy broker. However, NIMEC's owner, David Hoover, is exempted from having to have a State energy broker's license per se because he markets energy to municipalities. So where is the oversight, on either NIMEC, Hoover, or the above associates?
The Village should open the process beyond just the one broker, NIMEC. After all, isn’t the point to get the best rates for both residents and municipalities? As for NIMEC, I’d think the Village ought to deal with only properly licensed, registered entities. Don’t you?
Gail R. Campbell
gailrcampbell@hotmail.com
Gail R. Campbell
4:23 pm on Wednesday, April 20, 2011
In fairness I wish to correct an error I made in my prior comment:
I stated that an entity named Progressive Energy Services was listed on the Illinois Municipal Aggregation of Electric website, was associated with the Northern Illinois Municipal Electric Cooperative (NIMEC), and was unregistered with the Illinois Secretary of State's office.
A confusion resulted from this statement because Progressive Energy GROUP (caps added for emphasis) IS listed on that website, not Progressive Energy Services, and Progressive Energy Group IS registered and listed with the Illinois Secretary of State's office as as "...an Agent, Consultant and Energy Broker in Illinois" according to a spokesperson for the Group.
I regret any confusion due to that mistake. None was intended.
Gail R. Campbell
gailrcampbell@hotmail.com