Home || Finance || Electrical Aggregation || Faq

2012 Electricity Aggregation Proposal

Frequently Asked Questions

This FAQ is also available as a PDF in English or Spanish.

What is electricity aggregation?

Electricity aggregation is a program that allows municipalities the option of creating a large buying group of residential and small commercial retail electricity accounts in order to seek bids for lower rates. Right now with ComEd, customers obtain power at a fixed rate, regulated and set annually by the Illinois Commerce Commission. Grouping residential and small commercial accounts together creates economies of scale and, in turn, the possibility of achieving savings on electricity costs that cannot normally be achieved by the individual customer.

What are the benefits of electricity aggregation?

The most important benefit is the opportunity for residents and small businesses to save money on their electric bills. While any savings to be seen by Aurora electricity customers would be dependent upon bids submitted by potential Alternative Retail Electricity Suppliers (ARES), it has been reported that savings of about 12% to 18% on electricity costs have been obtained by some of the approximately 20 Illinois municipalities that have gone through the competitive bidding process to date.

How does electricity aggregation work?

First, a municipality must seek to obtain authority to create an aggregation program through a referendum. The Aurora City Council has authorized the placement of the referendum question on the primary election ballot that will be voted on March 20, 2012. If the referendum is approved, the city will seek bids from ARES to obtain lower electricity rates for residents and small businesses. A resident or small business would be able to opt out of the city’s program if desired.

How would electricity aggregation impact my current situation and electricity bill?

The impact of the electricity aggregation would primarily be cost savings. Electricity customers participating in the program would see no change in their utility bills other than a reduction in the price of electricity. Customers will continue to receive a single bill from ComEd, make one payment to ComEd, and receive all other services through ComEd.

When would the electricity aggregation program go into effect?

Before the City of Aurora is able to implement an electricity aggregation program, the voters must approve a referendum on March 20, 2012 to authorize the program. If the referendum passes, the earliest the program will begin is in the late summer of 2012.

Do I have to participate in the electricity aggregation program if I do not want to?

No. Even if the referendum passes, residents and small businesses would be free to opt out. Opt-out notices would be provided via mail prior to the program commencing.

When will I start seeing a reduction in my electricity bill?

The earliest participants would receive bills with new rates is August 2012. Customers are billed after using electricity. Therefore, if electricity is supplied under the new rates in July, utility bills will not reflect the new rate until August for July’s service.

What part of my electricity bill will this program affect?

Your electricity bill has two primary cost components: supply and delivery. Electricity aggregation changes only the supply component of the bill. The delivery component will not be affected.

If the electricity aggregation program is implemented, who will I be able to call if there is an outage or issues with my electricity bill?

All service and billing questions will continue to be directed to ComEd at (800) 334-7661.

How can I get more information about the electricity aggregation proposal?

If the referendum is approved, public hearings on the program will be conducted afterwards.

In addition, you should periodically check the city’s website for updated information. You can also call (630) 585-5266 if you have questions about electricity aggregation.