• Oct 11, 2018, 12:57 PM

Municipal Aggregation Program Update

The current ComEd rate was recently reset BELOW our aggregation program rate. The current ComEd rate is $0.0729 per kWh. The Village’s program rate is $0.0738 per kWh. Residents can return to the lower ComEd rate at any time, with no early termination fee. To do so, call MC Squared Energy at 855-564-8130. Be sure to have your ComEd account number available when you call.

Background: When the Village last renewed its aggregation program, ComEd had published its annual residential rate of $0.0776 per kWh. The Village received numerous bids to renew its program and selected the lowest rate of $0.0738 per kWh from MC Squared. Months later, ComEd unexpectedly adjusted its rate downward to $0.0729.  This rate will be in place through May 2019.

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. 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 Village’s rate be adjusted downward? No. The Village 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 Village 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 Village may put in place.

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