Village of La Grange to Discuss Electrical Aggregation Options Tonight

La Grange residents interested in hearing the Village Board discuss options regarding an electrical aggregation plan for the village should drop by tonight for the board's regular meeting at 7:30 p.m.

Recently, with electrical supplier First Energy at their board meeting on June 12. Residents of La Grange Park who do not opt-out of the program will be billed 4.93 cents per kilowatt-hour for their electricity and see an average yearly savings of about $347.

La Grange residents could get a similar opportunity to save money if the board directs staff to develop a resolution for trustees to approve, so that the issue can appear on the November ballot. The board could vote on a resolution by their next meeting on June 9, according to village staff.

La Grange Trustees, concerned about resident's tax burden and the cost of village government, have been looking for ways to save residents money at most of their meetings this year. Trustee Jim Palermo, in particular, has been vocal at past meeting about the board considering an electrical aggregation program for residents.

Electrical Aggregation Background:

In 2009, Illinois amended the Illinois Power Agency Act to deregulate the electrical market for residential and small business customers, giving them the freedom to shop around for the electrical supply.

ComEd continues to be the distributor of electricity throughout the state, but deregulation allowed residents to buy their electricity from other suppliers adding their electricity to the system. Deregulation also allows municipalities to solicit bids for electricity on resident's behalf, which means a bigger pool of customers and lower rates.

Because ComEd continues to be the distributor of the state's energy, residents would see little change after selecting a new provider. ComEd would continue to bill residents on behalf of the aggregator and would continue to maintain power lines and other infrastructure. Should the aggregating company not be able to supply power for any reason, residents would see no interruption in their electrical supply.

"Not even a flicker," Sharon Durling, a consultant with the Northern Illinois Municipal Electric Collaborative (NIMEC), told La Grange Park board members at a recent meeting. NIMEC works with municipalities to answer questions, get information out to residents and to help the municipality go to bid for their electricity.

About 170 communities had an electrical aggregation referendum on their ballot earlier this year in March. In La Grange Park, .

Many Options Before Residents, 2 Examples:

Environmental: municipalities can purchase "green" or "brown" electricity with their contract. Energy from sustainable (green) sources is slightly more expensive and not available from all companies. Residents will also be able to choose how much of their electricity comes from either source. La Grange Park recently went with 50 percent green energy in their bid.

Civic Contribution: a civic contribution fee can be added to a village's bid prices to raise revenue for the village, while also attaining significant savings for residents. La Grange Park recently approved a civic contribution tax in their contract. The fee will add about $10 yearly to resident's bills. Trustee Marshall Seeder was the only La Grange Park trustee to vote against it, calling it a "backdoor tax." Other trustees saw it as recouping the expense of spending staff time on aggregation, and as a way to raise funds for the village in a way that would have minimal impact on residents.

Want more information? Take a look at our pictures. I've added a PDF document of Village Manager Robert Pilipiszyn's memo to trustees. The memo outlines the history of electrical aggregation in Illinois, the village's options and a record of what other municipalities have done.