The Village of Buffalo Grove in engaged in a three-year electrical aggregation agreement. The agreement start date is May 2014 and provides an electricity provider alternative to ComEd. Constellation Energy Resources will be the Village's new alternative power provider. The Village will also be represented by the Northern Illinois Municipal Electric Cooperative.
What is Electrical Aggregation?
Hundreds of Illinois communities use electrical aggregation for the bulk purchase of electricity. Pursuant to Section 1-92 of the Illinois Power Agency Act, 20 ILCS 3855/1-1 et seq. municipalities are authorized to aggregate the electric loads of residential and small commercial retail customers and to then solicit bids, select a retail electric supplier, and enter into a supply agreement to facilitate the purchase of electricity and related services and equipment on behalf of its residents and small businesses. The statute is a part of the state’s electric deregulation efforts which allows customers access to competitive retail electric markets. In theory, bundling of residential and commercial accounts gives the Village more leverage to negotiate lower rates. Residents will still get a bill from ComEd and call ComEd when needed for service issues because the infrastructure is provided by that company. If residents find they can secure a better rate than what is provided by Constellation, they may opt out any time during the three-year agreement period. There is no termination fee.
What do Residents Need to do?
Because each community within the Consortium adopted an opt-out aggregation program, all customers in the defined aggregation group participate in the Program unless they affirmatively elect to opt out of the Program. By including procedures by which customers may opt-out, the aggregation program ensures that participation is voluntary and individuals have the ability to decline to participate.
Where can I Find More Information?
The Illinois Commerce Commission has created a website to inform residents about electrical aggregation. To learn more about aggregation in general and its history in Illinois, please visit pluginillinois.org. Click here for more information about the Village's alternative power provider, Constellation Energy Resources.