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Municipal Aggregation Program Update – October 4, 2018

October 4, 2018 By General Content

The current ComEd rate was recently reset BELOW our aggregation program rate. The current ComEd rate is 7.29¢. The City’s program rate is 7.64¢. Residents can return to the lower ComEd rate at any time, with no early termination fee. To do so, call Constellation Energy at 844-252-3656. Be sure to have your ComEd account number available when you call.

Background: When the City last renewed its aggregation program, ComEd had published its non-summer residential rate (October 2018 thru May 2019) at 7.941¢, resulting in an average annual rate (June 2018 thru May 2019) of 7.76¢.  The City received numerous bids to renew its program and selected the lowest rate of 7.64¢ from Constellation. Months later, ComEd unexpectedly adjusted its rate downward to 7.29¢.  This rate will be in place through May 2019.

The difference in rates equates to approximately $2.85/month for the average West Chicago resident. Keep in mind that the West Chicago aggregation program has saved the typical homeowner $211 to date.

Why did ComEd reset its rate?  ComEd is part of the PJM grid, a regional transmission organization that coordinates the movement of electricity in 13 states. PJM is regulated by the Federal Energy Regulatory Commission (FERC). PJM’s charges are included in the energy charge for all suppliers, including ComEd.

The unexpected reprieve is due to a settlement negotiated by the Illinois Commerce Commission and regulators in other states that make up the 13-state regional power grid called the PJM Interconnection, of which northern Illinois is a part. The pact affected the allocation of costs of transporting power to population centers. Flat rates were charged across the grid. But it turns out East coast states are more expensive to serve. Thus, some areas including northern Illinois were subsidizing Eastern states. FERC had PJM re-set its pricing, cutting the cost of transmission and reimbursing electric consumers for past overpayment in those areas.

Will the City’s rate be adjusted downward? No. The City negotiates fixed rates for the duration of its contracts and asks its suppliers to bear the risk of regulatory changes during its contract. As such, the City rate will not change.

Future inclusion in Aggregation Program? If a resident chooses to leave the program for the lower ComEd rate, they will be able to rejoin the program after 6 months, should they choose to do so. If they remain with ComEd until the end of the current aggregation program, they will automatically be included in any renewal program the City may put in place.

 

 

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Filed Under: News, Public Works Tagged With: Municipal Aggregation Program

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