Electricity Bulk Buyers To Pay 7.2 Cents per Kilowatt Hour for Next Year, Up 54% from Current 4.169 Cents

A press release concerning future electricity costs for most of those in McHenry County whose municipalities are buying it in bulk (think “aggregation”), which are going up almost 54% from 4.169 to 7.2 cents per kilowatt hour:

NIGEAC ELECTRIC AGGREGATION PROGRAM WILL CONTINUE TO PROVIDE SAVINGS FOR RESIDENTS AND SMALL BUSINESSES

McHenry County, IL (May 10, 2014) – Officials of the Northern Illinois Governmental Electric Aggregation Consortium (NIGEAC), which include the communities of Electric Aggregator's logo NIGEC

  • Algonquin
  • Genoa
  • Huntley
  • Lakewood
  • Ringwood
  • Woodstock

are pleased to report that they have completed negotiations for a new term that will continue to provide savings versus the alternative ComEd rates.

Residents and small businesses in the current program have collectively saved over $6.2 million in the first 18 months of the program that will expire in July 2014.

The NIGEAC recently completed an exhaustive bidding process and agreed to renew with their current supplier, Direct Energy, for another 12-months at a fixed rate of 7.2 cents/kWh.

[ComEd’s rate will be 7.596 per kilowatt hour.  The previous rate was 4.169 cents per kilowatt hour.]

Lori Ciezak, Executive Director of the McHenry County Council of Governments and Official
Coordinator for the group said,

“With so much volatility in energy prices this winter the group was very cautious not to rush into a decision.

“We wanted to see the alternative rate from ComEd before selecting a supplier.

“When the ComEd rate was announced we were ready to go and selected our incumbent supplier as the lowest and best bidder.”

Direct Energy will be sending letters in the upcoming weeks to current participants and newly eligible residents who receive their supply from ComEd, or in other words, those who have not chosen a supplier on their own.

When your letter arrives please read it carefully, it will explain the rate and terms and conditions. If you wish to remain in the program, simply do nothing.

If you do not want to participate, follow the instructions for opting-out within the 21-day period.

The sky was blue on Monday, May 14, 2012, but there was no electricity in one Four Colonies neighborhood.

The sky was blue on Monday, May 14, 2012, but there was no electricity in one Four Colonies neighborhood.

Mark Burns, President, of Independent Energy Consultants said,

“The group enjoyed rates of 4.169 and 4.986 cents/kWh, respectively, in the first two years of the program.

“Unfortunately, the prolonged and bitter cold winter has driven energy prices higher and capacity costs have soared as a result of the retirement of many coal-fired generating plants across the Midwest.

“We see higher offers in other communities and in the default rates from ComEd.

“We’re pleased that the 1-year offer will provide significant savings vs. the ComEd rate, which is only known through May 31, 2015.”

Under Illinois law, communities are able to form aggregated buying groups to purchase electricity on behalf of their citizens. The governmental aggregator chooses an alternate supplier for all of the members in its group.

Customers may opt out of the aggregation program and shop for a supplier or accept the standard rate offered by their utility.

The local utility companies will continue to deliver the electricity, read meters, send monthly billing statements and maintain service for residents and small businesses.

= = = = =
ComEd is again asking for more money to deliver the electricity. It would seem to me that keeping their delivery system up to snuff should have been expected and required in return for Commonwealth Edison’s monopoly status.

Also noteworthy is that the closing of coal fired plants, pursuant to the Obama Administration’s initiatives to lower carbon emissions has a real cost to everyone.


Comments

Electricity Bulk Buyers To Pay 7.2 Cents per Kilowatt Hour for Next Year, Up 54% from Current 4.169 Cents — 4 Comments

  1. I think those individuals who are ComED customers, but not subject to the aggregation. Can still go with a different supplier for their electrical supply.

    My wife and I use Virdian.

    Last summer they were 0.03 cheaper than ComED for a 6 month fixed rate.

    This year they are 0.005 cents cheaper, however this price difference was before ComEd raised their rates.

    Just a word of caution.

    If you select another supplier, make sure you know when your term rate ends.

    In many cases you get moved into a higher cost bracket.

  2. “Electricity rates will necessarily skyrocket.”

    Where have I heard that before?

  3. Yes Cindy – and he said that campaigning in coal country Pennsylvania BEFORE he was elected!

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