advertisement

Across the state, voters approve electricity aggregation

CHAMPAIGN, Ill. — Measures giving local officials power to negotiate for lower-priced electricity have passed in most of the nearly 300 Illinois towns where they were on the ballot, and residents and small businesses can expect the communities to move quickly to try to cut cheaper deals.

That’s because the higher Ameren Illinois and ComEd rates that officials are betting they can beat are likely to drop over the next 15 months or so, according to the Citizens Utility Board, a consumer advocacy group. Long-term contracts signed by the two major Illinois utilities several years ago, locking in higher rates, are due to expire by next summer.

Consumers in towns where the measures have passed will likely see lower rates in the short run.

“You would almost have to try not to save some money” compared to utility prices that are currently locked at 20-30 percent more than market rates, said David Kolata, executive director of the Citizens Utility Board.

The question, he said, is what happens after that.

By late Wednesday, the board had checked on the bulk of the electricity aggregation measures that were on Tuesday’s ballot and found about three-quarters of the nearly 300 had passed, Kolata said.

The rush of towns putting the measures before voters followed a move last year by about 20 northern Illinois towns. The board says all of the earlier measures have saved local residents and small businesses money, $9 to $14 a month.

Communities where the measures passed will now start putting together plans and looking for bids from power providers.

By law, towns must have two public hearings before moving ahead, and residents will have two chances to opt out: when the local government sends out a letter telling residents that their electricity supplier is going to change, and again when the local government mails notice that the supplier has changed.

But some things won’t change in the communities where aggregation measures passed. Customers would still be billed by Ameren or ComEd, depending on which of the utilities they use now, because those companies would continue to deliver the power and be responsible for outages or other problems.

In Champaign, public works director Dennis Schmidt expects to have a plan and bids for the cty council to consider by mid-May.

“I think everybody agrees that there’s some savings to be had here,” he said.

But Schmidt said no one knows what will happen after the long-term deals signed by the utilities expire. “You tell me what the economy’s going to be a year from now,” he said.

In the meantime, Kolata said, communities should probably sign only short-term deals and look for opportunities to potentially save even more money as Ameren and ComEd rates possibly become more competitive with the rates of new suppliers.

“I would presume that the suppliers are going to have to find ways to increase the value for towns, and maintain the value for towns,” Kolata said. “I guess we’ll find out.”

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.