Lake Zurich to host public hearings before negotiating for electric rates

Lake Zurich will host the first of two public hearings Monday to gather input from residents and small businesses as the village prepares to negotiate for electric rates.

A referendum passed in March that allows the village to create a plan to aggregate residents’ ComEd accounts and seek competitive power quotes to see if they beat the Commonwealth Edison rate. The plan must be approved by the village board in early May before the public works department can start seeking bids.

Under the proposal, if Lake Zurich finds a cheaper supplier, ComEd would continue to deliver the power and bill residents at a lower supply rate. The village estimates it will be able to save residents up to 15 percent on electric costs, or about $175 annually, according to Planning Manager Vijay Gadde.

“Depending on the bids we start seeing in May, residents could see a discount,” Gadde said.

Lake Zurich customers will be automatically enrolled in the aggregation program. Residents can opt out if they have already switched or decline to switch suppliers.

ComEd will continue to respond to power outages.

A 2011 Illinois Commerce Commission decision allows alternative energy suppliers to bill through ComEd, opening a new market for customers. That year, 19 municipalities across the state switched suppliers. Many more are expected to negotiate rates in the coming months.

“The more residents we have represented under the plan, the more leverage we have in negotiations,” said Trustee Rich Sustich. He suggested the village could team with other surrounding communities to negotiate with electric suppliers.

“We’re not just looking at prices,” Sustich said. “Other things play into it, like opt-out fees for residents; things need to be convenient.”

The list of potential new energy suppliers in Illinois includes BlueStar Energy Solutions, Champion Energy Services and Spark Energy. The aggregation program, if passed, would not be expected to go into effect until late summer at the earliest.

Monday’s public hearing will take place at the village board meeting at 7 p.m. at Lake Zurich Village Hall. A second hearing is set for the meeting May 7, and if there are no public comments the plan will be voted on that night.

Residents can view a copy of the proposed plan by contacting the Lake Zurich Administration Department.