What is municipal aggregation of electricity?
Aggregation in general refers to many customers joining together to form a
buying group. Municipal aggregation refers specifically to the situation where a
municipality organizes the pooling of its citizens to become the buying group.
The municipality then seeks out offers on behalf of its constituents to get
better pricing, terms and services than would be available to an individual.
Similar to garbage collection contracts, the municipality will have the
authority to negotiate on behalf of its entire community.
Why is this possible?
The State of Illinois amended the deregulation legislation allowing
municipalities to aggregate their residential and small business.
Through deregulation, municipalities can
seek competitive bids for the energy and move to other suppliers if their
pricing is more attractive. ComEd is no longer the only company that supplies
electricity, but everyone continues to use ComEd to deliver the power, even if
it is purchased by other suppliers.
does municipal aggregation work?
aggregation allows the municipality, in this case the City of
Sycamore, to organize its residents to serve as a buying group to
procure electrical energy at a reduced cost when compared to the
A referendum was approved in March to
allow the City to proceed with Municipal electric aggregation.
every resident and small business required to participate?
Residents and small
businesses can opt-out of the program if they do not wish to
Initially, every resident and small
business will automatically be included in the aggregation program,
unless the resident or small business has already entered an
individual contract with an energy supplier.
In order to bid, suppliers must be
certified by the Illinois Commerce Commission.
supplier has won the City’s aggregation?
The City has entered
into an agreement with First Energy.
is the rate per kilowatt hour?
The rate per kilowatt
hour from First Energy will be 4.81 cents.
When compared to over 8 cents per
kilowatt hour through Commonwealth Edison, customers can expect see
a savings of over 43% on the power portion of the electric bill.
(Note**Residents with a special rate
for electric space heat will save much less than those with standard
long is the rate guaranteed for?
The rate will be locked
in for two years, unless the rate offered through Commonwealth
Edison is less than 4.81 cents kW/h.
The City negotiated a price guarantee,
meaning if ComEd’s rate drops below the stated rate First Energy
will match or move the aggregated accounts back to ComEd.
will the potential savings begin?
The savings is likely to be reflected on the
How much will I save?
www.mycomedbill.com and use the
online calculator to find out what your savings will be.
How will this affect ComEd?
ComEd will continue to bill you. ComEd
will continue to respond to power outages.
How Do I Enroll?
You do not have to do
anything to enroll. All eligible residents and small businesses will be
automatically included in the program unless they choose to "opt-out". A letter
will be sent in the next few weeks with details of the price and terms prior to any enrollment. If you
do not respond to the letter sent to you, Commonwealth Edison will complete the
enrollment process. However, if you do not want to enroll in the program, you
have until a specific date, to opt-out.
Will I get two bills?
No, you will continue to get one bill from ComEd. You will
continue to send your monthly payment to ComEd.
Will the aggregation program affect the reliability of ComEd service?
No. The aggregation program will have no
impact upon the reliability of service you receive from ComEd.
Will I still be a ComEd customer?
still provides the distribution of electricity and will still be responsible for
delivery services: reading meters, maintaining equipment, responding to outages,
the monthly bill look different?
No, Commonwealth Edison
will continue to be responsible for delivering the power, reading
meters, responding to outages, etc.
The monthly bill will look the same
with the exception that the energy component will be reduced as a
result of municipal aggregation.
ComEd’s delivery charges will be the
same whether the power comes from ComEd or an alternative supplier.
What if I have
already selected another electric supplier?
If you have already signed up for another power supplier on your own, you will
not be included in the aggregation program.
You may, however, opt-out of your current program and then join the
City’s program. You should first
determine if your current supplier would charge an early termination fee to
If I heat my home
with electricity, will I be included in the aggregation program?
ComEd provides a subsidized rate for homes and businesses with electric heat
however prices through First Energy offer a savings when compared to the
For more information on electric heat, visit:
and click on “Utility Space Heating Rate”.
Act 096-0176: Amendment to Illinois Power Agency Act (PDF)
Plug In Illinois by the Illinois
Citizens Utility Board
of Communities with Opt-Out Municipal Aggregation Program
Chicago Tribune article about municipal aggregation
For additional information regarding municipal
aggregation, call 1-800-856-3404.