Aurora discusses electric aggregation costs, benefits

Aurora is one of many communities considering asking voters this spring to agree to aggregate their electric accounts and seek bids from power suppliers other than ComEd.

Industry experts say electric aggregation may save residential customers up to 25 percent on the supply segment of their power bill.

A possible question on the March 20 ballot would ask voters if they want the city to merge all their electric accounts and act on their behalf to seek a lower price from a new electricity supplier.

But educating voters about the topic could cost the city, an expense some aldermen are concerned about in the event the proposal fails.

“How would we educate the community and how much would we spend on it?” Alderman-at-Large Richard Irvin asked at a committee of the whole meeting.

Election law allows the city to provide factual information about any referendum proposal as long as the information does not urge residents to support or oppose the measure.

So if Aurora chooses to put a referendum question on the March 20 primary ballot, the city could mail letters to residents and hold public meetings to explain what electric aggregation means.

If the measure passes, Aurora could tack on a fee to the base price charged by the new supplier to recoup the costs of paying for voter education, Finance Director Brian Caputo said.

“If it doesn’t pass, the city may have to pay for education costs,” he said.

Still, education will be necessary should the city choose to pursue electric aggregation, Alderman Scheketa Hart-Burns said. If people don’t understand the benefits of an aggregated contract, they won’t support it, she said.

When a municipality aggregates its residential and small business electric accounts, economic principles drive suppliers to offer lower prices on the cost of generating electricity, Caputo said.

“For the next few years, there could be some savings,” Caputo said.

Savings could be up to 25 percent on the supply section of the bill, but the exact price won’t be set until the city seeks bids. Any customer unhappy with a contract the city approves would have two chances to remove their account from the agreement and find their own power supplier.

“While there’s not a 100 percent chance as to what the savings would be, there’s a better chance of savings,” under an aggregated contract than without one, Mayor Tom Weisner said.

The city council will vote Tuesday, Dec. 13 on whether to ask voters in the March 20 primary election if they want to aggregate their electric accounts.