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Municipal Electric Aggregation

Municipal Electric Aggregation. Electric Aggregation Advisory Committee August 22, 2012. What is municipal electric aggregation?. When a municipality negotiates or bids for an electric supply rate for residential and small commercial customers within the municipality.

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Municipal Electric Aggregation

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  1. Municipal Electric Aggregation Electric Aggregation Advisory Committee August 22, 2012

  2. What is municipal electric aggregation? • When a municipality negotiates or bids for an electric supply rate for residential and small commercial customers within the municipality. • The supplier then provides power supply through ComEd. • ComEd bills customers based on new rates.

  3. Why pursue electric aggregation • Municipalities are able to bring significant savings in electric supply rates to residents. • ComEd Rate: Electric Supply: 6.214 cents per kWh (June-Sept.) 7.722 cents per kWh (Oct.-May) Transmission: 0.820 per kWh Total Rate: 7.034 / 8.542 cents per kWh • Aggregation Experience (ComEd territory): Electric Supply: 4.056 to 5.99 cents per kWh Transmission: 0.820 per kWh Total Rate: 4.876 to 6.81 cents per kWh

  4. Why is the savings possible? • Illinois Power Agency regulations on electric utilities prohibit them from profiting on electric supply. • IPA regulates the purchase of power and sets rates for utilities. • Current electric market is extremely low • Recession • Historic low natural gas prices • Competition among suppliers

  5. Future of electric aggregation • Savings are likely short term • Predicted market upswing in 2014 • New EPA regulations in effect in 2015

  6. Opt-out Process • Referendum • Filed for November Election • Public Information Profess • Plan of Operation and Governance • Provide for universal access and equitable treatment to applicable residential customers • How demand management and energy efficiency services will be provided to each class of customers • Responsibilities of municipality and consultant • Public Hearings • Reviews the Plan of Operation and Governance • Two required

  7. Next Steps • Consultant selection • September • Public Information • Now through November • Draft Plan of Operation and Governance • Prior to November referendum • Referendum • November 6 • Public Hearings • Scheduled if referendum is successful

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