Everybody likes to save money.
One way that is becoming more and more available involves the use of electricity. This is known as Electric Aggregation and is anticipated to go to the unincorporated area voters of McHenry County for the March 20 Primary Election.
The following provides information regarding the upcoming ballot questions. It should be realized this would apply only for residents in the unincorporated areas of McHenry County. If any of the cities or villages in the County desire to provide for the same possible savings for constituents it would require approval by the voters of each particular municipality.
1. How can the County purchase electricity on behalf of residents and small businesses at potentially lower costs?
Under the Illinois Power Agency Act (20 ILCS 3855/1-92), local governments are now able to receive a request for proposals (RFP) from suppliers on behalf of the entire community under a single contract. If the rates are lower than ComEd’s, all residential and small business accounts in the unincorporated County area would purchase electricity from the new supplier saving residents and small businesses on their electric bills.
2. Why is there a referendum?
Under the new state law, voters must approve a referendum granting the County the authority to seek electric service RFPs for residents and small businesses under a single contract.
3. What does the referendum ask?
The referendum asks unincorporated McHenry County voters if the County should have the authority to seek RFPs for electric services under a single contract. It specifically it asks:
“SHALL THE COUNTY OF MCHENRY, ILLINOIS, HAVE THE AUTHORITY TO ARRANGE FOR THE SUPPLY OF ELECTRICITY FOR ITS RESIDENTIAL AND SMALL COMMERCIAL RETAIL CUSTOMERS WHO HAVE NOT OPTED OUT OF SUCH PROGRAM?”
4. Why is the County asking voters for this authority?
The County’s intent would be to try and save residents and businesses money by taking advantage of the new state law.
5. What happens if the voters approve the referendum?
If voters approve, the County would begin the process of developing RFP documents with its Electric Aggregation Consultant and seeking RFP from electric suppliers. If the resulting prices are lower than current prices from ComEd, the County Board would accept the lowest, responsible bidder. Since electric prices would be lower, residents and business electric bills would go down.
6. What if a resident does not want to participate?
You don’t have to change electric suppliers. Each electric customer would be contacted by the selected new electricity supplier. Any customer may “opt out” of the program and stay with your current electric supplier.
7. Can residents enter into their own individual contracts with electric suppliers?
Yes, residents may currently enter into their own contract. Alternatively, residents may “opt-out” and then enter into their own contract.
8. What if the prices from the RFPs are higher than ComEd’s prices?
The County Board would not accept any RFPs and your account would stay with ComEd.
9. What rate savings can be expected?
It is too early to predict the magnitude of savings as electric suppliers have yet to price residential and small business accounts under a single bulk contract. That having been said, past aggregations have resulted in approximately 20% savings.
10. If power is purchased from another supplier who would residents call for outages?
ComEd will continue to be responsible for electrical distribution. By law, ComEd would continue to handle all service issues including any emergency repairs.
11. Would I get a separate bill from the new supplier?
ComEd will continue to handle billing. You will still be a customer of ComEd’s delivery system while you purchase power from another supplier.
12. Can the public have input on the RFPs?
Yes, the County will hold public hearings to give residents the opportunity to provide input on the plan.
13. If the referendum passes, is the County obligated to switch suppliers?
No. The referendum merely gives the County the right to seek RFPs. If RFPs are not lower, or not low enough, no change would be made.
14. When would the first RFPs be received if the voters vote “yes”?
March 2012 would be the earliest for the County to receive the first RFPs.
As an added note, we know of someone in McHenry County who receives natural gas in a like manner. A referendum was not required for this utility.
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