Hoffman Estates voters will decide future of power bills

Hoffman Estates voters will have an opportunity early next year to approve a referendum question that would allow the village to take action in obtaining a lower price for the community’s supply of electricity.

After being amended in 2009, the Illinois Power Agency Act states that municipalities can aggregate all their residential and small business electric consumers for the joint purchase of electricity from an alternative retail electric supplier.

More than 20 municipalities in Illinois voted this past April to begin their aggregation process. They are expecting to save between 20 to 25 percent in the first year on electrical supply costs.

The Hoffman Estates’ General Administration and Personnel Committee passed a resolution Monday granting the referendum question to be placed on the ballot in March, putting the decision of aggregation in the hands of the public.

If the referendum question is approved — and after two public meetings, the establishment of a municipal electric program and the development of an operation plan — the village can begin to solicit proposals and bids from suppliers other than ComEd.

Administrative intern Sarah Kuechler explained to the committee that residents and small businesses currently can opt-in on their own to the Metropolitan Mayors Caucus’ Energy Savings Program, which guarantees participants a lower rate than ComEd until June 2013.

However, she said, the village staff does not recommend people pursue that option now because program participants may be forced to pay an early termination fee if they wish to join the municipality’s alternative energy supplier in late 2012, assuming the referendum question passes.

Others municipalities, including Elk Grove Village, are also considering putting a referendum regarding aggregation on the ballot in March 2012. Kuechler said there is a possibility that Hoffman Estates may enter into an intergovernmental agreement with some of those nearby municipalities so together they can leverage greater benefits with an increased number of accounts.

If Hoffman Estates finalizes an aggregation program, all residents and small businesses will be automatically enrolled in it, but can opt-out if they want, Kuechler said. Under any program, she added, ComEd will still provide the distribution of electricity and would continue to handle power outages.

Kuechler said the earliest a village aggregation program could become effective is August 2012.