ComEd customers who want a price break could soon have another option for electricity service.

Buffalo Grove officials voted unanimously Monday to place an advisory referendum on the March 20 ballot asking voters to decide whether the village should offer consumers the option of purchasing electricity through a municipal aggregation program.

Buffalo Grove plans to team with bordering villages, including Long Grove, Lincolnshire, Arlington Heights, Wheeling and Palatine, to secure lower prices for participating residents. The municipalities would solicit bids and contract only with companies whose rates are lower than ComEd’s.

Municipalities have been permitted to contract with outside suppliers since the passage of the Illinois Power Agency Act in early 2010. Electricity can be purchased through suppliers approved by the Illinois Commerce Commission.

By locking in a rate from an outside supplier, it is projected that consumers could save more than 20 percent during a two-year period.

Utility customers would be able to opt in or out of the aggregation program during specified periods, said John Kelly, a representative from Galvin Power, a not-for-profit organization that guides municipalities through the process. ComEd would continue to provide service in the event of a power outage, read electric meters and handle billing.

Village staff will begin educating residents and small business owners about the proposed program (see attached PDF) and officials said public hearings will be held in the coming months.

If the referendum is approved, officials said consumers could see cost savings beginning next summer.