Politics & Government

Area Villages Could Follow New Lenox, Seek Lower Electricity Rates

The village reached an agreement with Direct Energy to purchase electricity at a bulk rate, and now Mokena and Frankfort, among others, are exploring the option.

Following the village's for residents, Mayor Tim Baldermann said other municipalities would start lining up to find similar deals next year.

And that's exactly what's happening. In April, voters gave New Lenox the authority to seek lower electricity rates for residents at an aggregated price. Only 19 communities in northern Illinois did so, with New Lenox and Crest Hill the only two in Will County. But now there are loads more expected to join the trend, including Frankfort and Mokena.

Choosing an electric provider besides ComEd has been an option for Illinois residents to do on their own since 1997, when electricity was deregulated, but few have done it. This year, a change in state law allowed municipalities to seek bulk rates.

Find out what's happening in New Lenoxwith free, real-time updates from Patch.

The Chicago Tribune documented the trend, saying that 50 area municipalities could benefit from electricity aggregation within a year. Closer to home, the Will County Governmental League, a nonprofit organization that represents county municipalities in regional issues, unanimously voted to pursue electric aggregation for its members.

So how does this impact New Lenox's deal?

Find out what's happening in New Lenoxwith free, real-time updates from Patch.

Hypothetically, the Will County Governmental League could negotiate even lower rates than New Lenox got (5.89 cents per kilowatt hour) because it would be promising an even larger base of customers. Each municipality involved in negotiating this would need approval from voters during the March primary election.

New Lenox is locked into a two-year term with Direct Energy, but after that the village will explore its options and find the lowest possible rate. If the best deal was through a program that the county gets, Baldermann said the village could join that.

"We're always going to be looking for the lowest rates for residents," Baldermann said.

Nearby villages are already considering the move to follow in New Lenox's footsteps. in July, and during a board meeting in August.


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