Hoffman Estates chooses electric supplier

Hoffman Estates officials announced Monday that a two-year contact was signed late last week making Ohio-based FirstEnergy Corp. the village’s new electricity supplier.

Residents who don’t opt out of the program, which is expected to be effective Aug. 1, will be charged at a rate of 4.96 cents per kilowatt hour compared to ComEd’s current supply rate of 8.5 cents per kilowatt hour.

Deputy Village Manager Dan O’Malley said that means residents will receive a 42 percent savings. FirstEnergy, he said, estimates the average user will save about $340 over the term of the contract.

The village’s consultant, the Northern Illinois Municipal Electric Collaborative (NIMEC), did the bidding.

“The results of the bid were very favorable for the village,” O’Malley said.

“The best part is it’s 100 percent green energy,” he added.

The agreement, he said, includes a provision that if, for whatever reason, the ComEd rate drops lower than the FirstEnergy rate FirstEnergy will match the rate. The village will also be accepting a civic contribution, which is slated to be used toward the village’s sustainability program.

O’Malley said more information about the change will be available on the village’s website and sent out to residents and small businesses in the coming weeks.

Trustee Karen Mills expressed some concern about whether people who signed up with other electricity supply companies that have been soliciting around the village recently could find out about the FirstEnergy rate.

O’Malley said only residents who currently have ComEd as their supplier will receive a notice about FirstEnergy. He agreed, however, to make sure information about the rate is printed in the next village newsletter, which is mailed to all residents.

Residents with suppliers other than ComEd are allowed to opt-in to the village’s program, but they may face fees from their current suppliers if they leave, O’Malley added.