Electricity rates increase, but less than with Com Ed
ELBURN—Elburn residents will see an increase in their electric bill in September, but those in the village’s aggregate program will still pay less than if their contract was with Commonwealth Edison.
According to a press release from Village Administrator Erin Willrett, increased prices from energy suppliers is due to a large increase in capacity charges, which all suppliers must pay to ensure they can meet demand, a rise in cost for the actual power, due to the winter’s “polar vortex,” as well as a huge drawdown of the nation’s natural gas supplies, a large component of electric generation.
Through a municipal electric aggregation savings program established by the village in 2011, Elburn recently sought competitive bids and contracted with the lowest bidder, FirstEnergy Solutions, at a rate of $.0732 per kWh to begin in September. That rate will be good for a three-year term ending September 2017. The current rate for those in the program is $.0476 per kWh.
First Energy’s new rate of $.0732 per kWh compares favorably with Com Ed’s rate of $.07596 per kWh, effective on June 1, plus or minus a floating “Purchased Electricity Adjustment” that varies monthly. According to Willrett, Com Ed’s current rate, including the adjustment, is $.0788 per kWh.
Through the aggregate savings program, approved by the public in a referendum three years ago, the village has been able to save the average participating household $561, resulting in a cumulative village-wide savings of $1,015,000 since 2011.
According to Willrett, eligible resident and small commercial accounts will receive an “opt out” notice from the village, informing them of program details. No action is needed if they wish to be enrolled in the program, as that will happen automatically.
Residents in the program would automatically be switched to ComEd if their rate were to go lower, Willrett said.
Residents enrolled with other suppliers will not automatically be enrolled, but may join the program by calling FirstEnergy Solutions at 1-888-651-5200 and asking for the Elburn program and rate of $.0732. They should check to see if they are subject to an early termination fee.
Residents with questions about the program may call FirstEnergy or the village’s electric aggregation consultant, NIMEC, at 1-800-727-3820. When calling NIMEC, leave your phone number and you will be contacted within 24 hours.
Story edited at 7:15 a.m. July 26, 2013.