Politics & Government

Algonquin Electrical Aggregation Program Moving Forward

Local communities recently signed a one-year deal with Direct Energy.

Submitted by the village of Algonquin. 

The Village of Algonquin, working together with the Northern Illinois Governmental Electric Aggregation Consortium (NIGEAC), is pleased to report that they have completed negotiations for a new term that will provide savings versus the alternative ComEd rates.

NIGEAC recently completed an exhaustive bidding process and agreed to renew with their current supplier, Direct Energy, for another 12-months at a fixed rate of 7.2 cents/kWh.  The ComEd price to compare was recently announced at 7.59 cents per kWh through September 2014. That price does not include the Purchased Energy Adjustment (PEA) ComEd is allowed by law to charge at a maximum of 0.5 cents/kWh.

Find out what's happening in Algonquin-Lake In The Hillswith free, real-time updates from Patch.

Direct Energy will be sending letters in the upcoming weeks to residents who receive their supply from ComEd, or in other words, those who have not chosen a supplier on their own.  When your letter arrives please read it carefully, it will explain the rate and terms and conditions.  If you wish to remain in the program, simply do nothing.  If you do not want to participate, follow the instructions for opting-out within the 21-day period.

Mark Burns, President, of Independent Energy Consultants said “We’re pleased that the 1-year offer will provide significant savings vs. the ComEd rate, which is only known through May 31, 2015.  Unfortunately, the prolonged and bitter cold winter has driven energy prices higher and capacity costs have soared as a result of the retirement of many coal-fired generating plants across the Midwest. We see higher offers in other communities and in the default rates from ComEd.”

Find out what's happening in Algonquin-Lake In The Hillswith free, real-time updates from Patch.

Under Illinois law, communities are able to form aggregated buying groups to purchase electricity on behalf of their citizens. The governmental aggregator chooses an alternate supplier for all of the members in its group. Customers may opt out of the aggregation program and shop for a supplier or accept the standard rate offered by their utility.  The local utility companies will continue to deliver the electricity, read meters, send monthly billing statements and maintain service for residents and small businesses.

The Northern Illinois Governmental Electric Aggregation Consortium includes the communities of Algonquin, Genoa, Huntley, Lakewood, Ringwood and Woodstock.  To date, residents and small businesses in the current program have collectively saved over $6.2 million in the first 18 months of the program that will expire in July 2014. 

Please keep in mind that the NIGEAC logo will be included on all documentation from the new supplier.  For the latest information on electric aggregation in Algonquin, please visit www.algonquin.org


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