No action required to participate in new aggregation contract

Nov. 20, 2015 – Electricity customers who receive a letter from Constellation Energy about the Village’s aggregation program need take no action to be enrolled automatically on Dec. 1.

The new Village contract, which offers electricity at 6.735 cents per kilowatt hour for the next 12 months, represents a drop from the current two-tiered rate of 6.75 cents and 6.85 cents per kilowatt hour.

The Village program no longer includes buying renewable energy certificates, or RECs, an option Oak Parkers willing to pay the higher rate were able to choose in the expiring program. Instead, the new Village aggregation program will capture three-tenths of one cent of the fee consumers pay to create a fund for supporting local renewable energy projects.

The decision to forego what had been commonly called a green energy option evolved from a recommendation by the citizen volunteers on the Environment & Energy Commission. The commission determined that the earlier program where a portion of residential customers electrical supply fee was used to buy RECs has not proven effective in bringing solar and wind energy to Oak Park. That’s why the Commission recommended the electricity fee for local renewable energy projects as an alternative. 

By creating a funding mechanism for local projects, officials say, the aggregation program can make a tangible difference in the community and serve as a model for others that share Oak Park’s desire to help reduce the reliance on fossil fuels and their environment-damaging impacts.

The local fee is estimated to represent about $2.25 of the average residential electricity customer’s monthly bill under the new contract. Based on current aggregation program enrollment, a year’s collection of the fee will create a fund of about $400,000 for local projects.

Specific projects that could be funded by the new green-energy pool are limited to renewable energy. Among the ideas that have been suggested are the Smart City USA Program, which recommends grants for installing residential solar equipment with home energy management systems and battery storage technology. Community solar projects also could be funded under the new program. 

The Village Board likely will identify specific projects for funding in the first quarter of 2016. Public input will be gathered before any specific funding decisions are made, officials say.

Oak Parkers who want to choose their own energy provider still have the option of not participating in the Village aggregation program. To opt out of the Village program, just mark and return the card provided in the Constellation letter. Customers can learn more by calling 1.877.549.6888 or visiting www.constellation.com/il-oakpark. A ComEd account number or the code included in the letter is required to opt out.

Electricity aggregation, which was authorized by Illinois statute, allows municipalities to bundle residential and smaller business accounts, then use competitive bidding to seek lower rates from alternate suppliers. Voters gave the Village the authority to create a local aggregation program via referendum in 2011.

Aggregation does not alter the actual delivery of electricity, which still is provided by ComEd. In fact, consumers have the option of choosing from scores of suppliers approved by the Illinois Commerce Commission. Visit www.pluginillinois.org for more information.

Electricity customers who choose to opt out of the Village aggregation program will be enrolled automatically in electricity generation program provided by ComEd unless they select a provider on the open market.

Officials urge those who elect to choose an electricity provider from the state's list to read the fine print carefully. Contracts may contain unexpected fees and costly penalties to cancel.

The deadline to opt out of the Village aggregation program is Nov. 30.