Electrical Aggregation: Things You Should Know Before You Vote

When voters go to the polls on Tuesday, they’ll be asked to answer this referendum question: "Shall the Village of Plainfield have the authority to arrange for the supply of electricity for its residential and small commercial retail customers who have not opted out of such a program?"

What does that mean? It’s a practice called “,” and to help residents better understand it, here are some basic questions with answers provided by village officials and the Citizens Utility Board.

What is electrical aggregation? It’s the purchase of electricity on behalf of a group of people with the intent of securing a better price than what’s currently being charged by ComEd. The idea is that the village may be able to lower electricity rates – and thereby reduce homeowners’ and small businesses’ electric bills – by negotiating a price for the entire group of customers. If the village joins with other municipalities, thereby making the pool of potential customers even larger, rates could be reduced even more.

“It’s economy of scale,” village manager Brian Murphy said in November. “Negotiating on behalf of 11,000 customers is not the same as negotiating for 150,000.”

Who will they be negotiating with? There are several companies that sell electricity, all of whom could potentially win the Plainfield contract. If ComEd offers the best rate, they would continue to be the village’s electricity provider.

Does electrical aggregation automatically go into effect if the measure passes? No. Voters are giving the Plainfield Village Board “authority” to pursue it if trustees think it is a good idea. If the referendum is approved, the village board will discuss the issue and may ask village staff to begin the bid process or direct them to join forces with other municipalities in order negotiate as a larger group. Even if a potential deal is struck, the board will still have to approve it before it can be enacted.

If ComEd does not win the contract, how will I be billed? Regardless of which company provides the electricity, ComEd will continue to send out bills to customers and to respond to power outages and other service-related problems. Customers should not experience any change other than lower bills.

What happens if ComEd’s current rate is the best? Everything will stay as it is right now.

I’ve already negotiated a lower rate with an electricity provider. What happens to me? If the village can negotiate a better rate, you will benefit from that. However, if you have a better rate than what the village secures, you will keep your lower rate.

Have any other towns in the area already done electrical aggregation? Yes. In June, Crest Hill signed a contract with NIMEC to be its electricity provider. The deal is expected to save the average homeowner about $125 a year.

What kind of savings might Plainfield see? It’s hard to say until bids go out. However, municipalities in other parts of the country have seen rates drop anywhere from 12 percent to 30 percent, Murphy said in November. He estimated that Plainfield residents would likely see a 12 percent to 14 percent decrease.

If the referendum passes, when would I see lower bills? It’s possible a new contract could be in place as soon as this summer, Murphy said.

I absolutely do not want this. Is there anything I can do if the village proceeds? Yes. Residents will be notified by mail if a new rate has been negotiated. At that time, you can sign a statement saying that you “opt out” and want to stay with ComEd.

Does electrical aggregation go away if the referendum fails? Not necessarily. The village could still pursue a new electricity contract on behalf of its residents. However, in order to take advantage of a lower rate, the homeowner would have to sign an agreement saying they want to “opt in.”