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Savings on Electric Bill Arrive in June

Village expects savings from consortium to be as much as 30 percent.

Village residents will soon have an opportunity which is expected to reduce the cost for power between 20 and 30 percent, according to Jennifer Maltas, assistant to Village Manager Kent Street.

Maltas hopes the program will be in place in June. Commonwealth Edison will continue to deliver the power through its existing infrastructure. The consortium will only purchase the electricity itself.

After citizens passed a referendum with 74 percent of the votes March 20 giving the Village authority to negotiate electric rates with suppliers other than ComEd, plans are moving ahead with the effort.

Late last year, Deerfield joined forces with Highland Park, Lake Forest, Lake Bluff, Skokie, Park Ridge, Northbrook and Glencoe to form a consortium to bargain with electric suppliers pending passage of the referendum.

“We expect the savings to be between 20 to 30 percent but we won’t know until we go into the marketplace,” Maltas said. “It could be more or less depending on the market the day we lock in a rate.”

In anticipation of passage of the referendum, the eight communities issued a Request for Proposal (RFP) to choose a supplier. MCsquared was chosen as the representative. They were the lowest responsible bidder,” Maltas said.

The consortium and MCsquared will monitor the market and select the best possible rate during the first half of April, according to Maltas. They do not want to take any action ahead of time which could push the rate up.

“The market is responsive deals in the marketplace,” Maltas said. “If we say we are buying on April 15 the market could move up.”

After the rate has been secured, all Deerfield residents who have not signed their own contract with an electric supplier will receive a letter from the Village explaining their options. If people do not specifically opt out of the program, they will be included.

On Monday, the Board of Trustees will vote on one ordinance and two resolutions enabling the Village to go forward with the plan at its regularly scheduled meeting at 7:30 p.m. There has already been a public hearing.

Regardless of the choice electric consumers make, they will continue to receive their bill from ComEd. ComEd will pay MCsquared, according to Maltas.

RonnieTheLimoDriver March 27, 2012 at 07:48 PM
We've had deregulation here for a number of years now. For some reason most consumers have not taken advantage of it, but businesses have. The grid here is no more or less reliable.
RB March 28, 2012 at 12:32 AM
That explains it. Except for why a bundler buyer of some sort is able to buy electricity at rates lower than a larger buyer like comEd?
SL March 28, 2012 at 02:23 AM
ILLINOIS - NORTHSHORE RESIDENTS Understand your electric bill - 101 Your Com Ed bill is divided into three parts Supply | Distribution | Taxes and Other Supply: -Electricity Supply Charge -Transmission Supply Charge Distribution: This portion remains with Com Ed -Customer Charge -Standard Meter Charge -Distribution Facilities Charge -IL Electricity Distribution Charge Taxes and other: -Smart Meter Program [2009 pilot program to "improve technology for remote meters"] comed.com/smartmeter -Environmental Cost Recovery Adj: Mandated charges through ICC -Energy Efficiency: Funds 'energy efficiency programs, recycling programs, "mandated by ICC" -Franchise Cost: Fee for recovered cost related to the agreement between ComEd and your village | Any questions - call your village. -State Tax -Municipal Tax: Any questions call your township _________________________________________________________________ Com Ed owns all the cables - wires - pipes - trucks - meters - labor force - admin for billing, etc...We are told this will not interfere with our Com Ed service.
SL March 28, 2012 at 02:28 AM
"Deregulation = Choice" of energy suppliers. Be advised: Before you "opt-in" to these multi-village Consortium's 12-24-36 month contracts...understand you are bound for that time. If you change your mind and want to "opt-out" at a later date, you will incur a $25 charge. Who charges the $25.00? Not ComEd (this answer is a confirmed ComEd statement) ASK THIS QUESTION where does the money go? $25.00 times (x) approximately 260,000 households/small businesses in one (1) of the many consortium groups. Do the math...ask important questions. -Where does this money go? -How and what is the money used for? -Who and/or what company, village, township, or consultants, benefit from these cancellation fees? *****Transparency is only as good as the questions we ask.***** Have unanswered questions? Direct them to the Illinois Commerce Commission (ICC) (800)524-0795 or go to their website: www.icc.illinois.gov | then select appropriate link
RB March 28, 2012 at 10:41 AM
If ComEd passes electricity through at no increase, why would another ( I assume smaller) company be able to purchase and sell electricity for around 25% less ? ComEd is large enough to negotiate an ever better rate, you would think.

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