Frequently Asked Questions
What is Municipal Opt-Out Aggregation?
Municipal Electricity Opt-Out Aggregation is a program that allows Municipalities
such as villages, cities, and counties, the option to create a large buying group of
residential and small commercial retail electricity accounts in order to seek bids for
cheaper rates. Right now in Ameren and ComEd, customers obtain power at a fixed
rate, regulated and set annually by the Illinois Commerce Commission. Grouping
residential and small commercial accounts together creates economies of scale,
enabling participating Municipalities the ability to achieve greater savings than
could normally have been achieved by the individual customer.
What are the Benefits of Municipal Opt-Out Aggregation?
The key benefit to Municipal Opt-Out Aggregation is the opportunity for residents
and small businesses to save money on their electric bills. Individual accounts can
potentially save between 10% to 15% off of their entire bill, up to 28% or more off of
the supply portion of their bill, based on current market conditions. Everyone wants
to save money, but spending some of those savings will also set conditions for
additional positive economic benefits within your community!
How does Municipal Opt-Out Aggregation work?
First, the Municipality must place a referendum on the November 6th Primary
Election ballot, asking voters to give their municipal government authority to create
an aggregation program. Once the referendum is approved, the Municipality will
create an aggregation plan that includes the objectives, procedures and process for
the program. The Municipality, through its expert consultants, will then seek bids
from Alternative Retail Energy Suppliers (ARES) to obtain competitive electricity rates
for participants. A resident or small business will be able to Opt-Out of the
Municipality’s program without penalty if they so choose.
How does Municipal Opt-Out Aggregation impact my current situation and
electricity bill?
The impact of Municipal Opt-Out Aggregation is primarily savings. Participants will
see NO change in their utility bill other than a price reduction on energy supply.
They will continue to receive a single bill, make one payment, and continue to
receive all other services through Ameren or ComEd. However, if customers are
already purchasing their power from a company other than Ameren or ComEd, they
are ineligible to take advantage of the Municipal Opt-Out Aggregation rate. A
resident or small business can join the Municipal Opt-Out Aggregation program
(assuming they are not in an existing contract with an ARES), still be billed by
Ameren or ComEd, and receive a price reduction, but early termination of a contract
with another electricity supplier may result in penalty fees. Check the terms and
conditions of your existing contract with your ARES.
When will the Municipal Opt-Out Aggregation go into effect?
Before the Municipality is able to implement the program, voters must approve a
referendum on November 6, 2012 to allow for municipal electricity aggregation. If
the referendum passes, the program will begin in early 2013.
Do I have to participate in the Municipal Opt-Out Aggregation program if I do not
want to?
No. Residents and small businesses are free to Opt-Out without penalty. Opt-Out
notices will be provided via mail prior to the program commencing.
When will I start seeing a reduction in my electricity bill?
The earliest participants would receive bills with new rates is January, 2013. But
remember, the new rate will reflect service received for the previous month, i.e., if
service begins in January, your utility bill will not reflect the new rate until February
for the previous month's service.
What part of my electricity bill will this program affect?
Your electricity bill has three cost components – transmission, distribution, and
supply. Municipal Opt-Out Aggregation changes only the supply component of your
bill. In the final analysis, approximately 50% to 75% of the electricity bill will be
impacted. The other components, transmission and distribution, will not be
affected.
Who shall I call if there is an outage or issues with my electricity bill?
All service and billing questions will continue to be directed to:
Ameren (800)755-5000 or ComEd (800)334-7661.
I am currently receiving offers from ARES promising lower electricity rates. What
should I do?
The earliest the Opt-Out Aggregation program is likely to begin is January 2013.
Consumers who decide to switch to an ARES before the municipal program is
available should consider several aspects of the existing retail supplier’s offer
before entering into agreement. These may include, but are not limited to the
following:
1 - Price/kWh
2 - Contract length: many ARES require a minimum 1-year contract, while only
offering a fixed price for the first six months. It is important to determine what
happens to the offer rate at the end of the first six months. Some ARES do not
define this in their offers. Depending on the contract term, a customer may be
prevented from getting the aggregation rate until the contract ends.
3 - Early termination fees
4 - Pricing terms which take effect at the end of the agreed upon fixed rate (as
mentioned above in #2 and/or at the end of the term), etc.
5 - One bill or two? Under the Municipal Opt-Out Aggregation program, participants
will still receive only one monthly bill and make only one payment to their respective
utility. Some ARES do not have this provision, meaning customers may receive their
regular bill from Ameren or ComEd and a separate bill from the supplier.
How can I get more information about the Municipality's Aggregation program?
Various public meetings and information sessions will take place through, and
following, the General election on November 6, 2012. Please check for
announcements from your municipality and your local news outlets. The municipal
website will feature all materials related to the referendum and the aggregation
program as they become available. You may also call and speak to a Committee
representative, or go to the Illinois Competitive Energy Association website for
additional information.
For more information call 618-465-6030