Electricity aggregation savings could start in June

Several North and Northwest suburbs that voted last month to approve an electricity aggregation measure will start to see those promoted savings as soon as June.

A consortium made up of Arlington Heights, Buffalo Grove, Lincolnshire, Long Grove, Palatine, Vernon Hills and Wheeling recently received eight bids from alternative retail electric suppliers, and officials were pleased with the proposals.

The electricity usage portion of a utility bill, which on average makes up about two-thirds of the total amount, will decrease more than 30 percent. In Palatine alone, savings will exceed $5 million, Village Manager Reid Ottesen said,

The favorable bids also make it likely that the consortium, which covers a population of about 260,000 people, will go with a completely renewable energy option. A supplier could be chosen by the end of the week.

“We had a very small spread between traditional, or brown energy, and the 100 percent renewable energy, and we’re hopeful that when the calculations come down, we might be within a 1 or 2 percent difference,” Ottesen said at the first of two public hearings each community is required to hold on the issue. “If that’s the case, it’s the intention to take the 100 percent renewable energy.”

Should the cost difference between traditional and green energy be more significant, officials said, residents will be able to select which option they prefer.

Several uneventful public hearings Monday opened and closed without opposition, and some passed governance and operating plans. In Palatine, a couple of residents applauded the consortium for making renewable energy a priority.

“(This) offers the opportunity to free up million of dollars without the loss of service or convenience,” resident Peter Gorr said.

In the March primary, dozens of communities across the state approved electrical aggregation, which lets them leverage greater buying power and get lower rates. ComEd will still provide service, delivery and billing, and contracts will last only a year.

Not every community is going through the process in a partnership. Hoffman Estates, for instance, chose to remain on its own for the time being. Village Manager Jim Norris estimates savings between 20 percent and 30 percent, though the bidding process won’t begin until next month. Officials there expect the program to begin in July or August.

After the decisive referendum results — between 60 percent and 74 percent of voters in the seven-community consortium approved electrical aggregation — misleading solicitations from various energy suppliers began filling mailboxes. As a result, some residents have been confused as to what, if anything, they have to sign to participate. Arlington Heights Public Works Director Scott Shirley reiterated that this is an opt-out program, meaning residents will automatically be enrolled if they do nothing.

“The sooner we lock into this market, the better,” Shirley said in reference to various companies’ “unsavory” practices. “We can put this Wild Wild West atmosphere behind us.”

Ÿ Daily Herald staff writers Jessica Cilella, Deborah Donovan, Melissa Silverberg and Steve Zalusky contributed to this report.

Savings: Residents will be automatically enrolled if they do nothing