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updated: 7/22/2011 1:32 PM

Sugar Grove residents to get cheaper electricity

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Sugar Grove residents can expect to pay less for electricity, beginning with the bills delivered in October.

The village has signed a two-year contract with Direct Energy, a Texas firm, to supply electricity to residences and small businesses.

The charge will be 5.99 cents per kilowatt hour, except for senior citizens, who will be charged 5.89 cents. That is about 22 percent lower than ComEd's rate, according to the village.

The cost is cheaper because the electricity is being bought in bulk, rather than by individual households. Residents gave the village permission to negotiate a contract on their behalf via referendum in April.

Customers are free to opt out of the plan and buy electricity from any company they choose.

Eight companies bid for the Sugar Grove business.

The cost savings is only on the supply of electricity. Other charges, such as metering, distribution and customer charges, are not affected.

Repairs and billing will still go through ComEd.

Sugar Grove, Elburn and North Aurora voters all voted in favor of electrical aggregation in April. North Aurora approved a contract earlier this week. Elburn is still working on getting proposals.