Residents Gather to Learn about Electricity Aggregation Referendum

About 40 people filled Buffalo Grove’s village chamber Wednesday afternoon to learn about the and have their questions answered before they cast their votes.

“I thought I’d come and hear what they had to say,” said Buffalo Grove resident Avis Primack, who knew few details about the proposal up until the meeting. 

The presentation, led by Deputy Village Manager Ghida Neukirch, included an overview what a successful referendum would mean to residents and small business owners and provided answers to questions frequently raised in the community. (See the three-page document at right.)

By voting in favor of the referendum, residents are simply saying they support their village’s efforts to secure a lower rate on behalf of the community. If the referendum passes, individuals will have the opportunity to opt out from participating in the group rate.

“If we can get a lower cost for our residents and businesses, we want to pursue any opportunity to do so,” Neukirch said.

Neukirch emphasized that no infrastructure change would be required for those who participate in the group rate. Electric bills would still be issued by ComEd, and the transmission and distribution charges on customers’ bills would not be impacted. ComEd would still be responsible for service and would continue to respond to power outages.

The supply portion of the bill, which typically accounts for 65 percent to 70 percent of the total, is what would be reduced in the event of a successful referendum, Neukirch said. In Grayslake, where residents have already adopted an electricity aggregation program, residents are saving about 25 percent, she said.

She said she expects local savings would be similar. Buffalo Grove, Long Grove, Palatine, Vernon Hills, Wheeling, Arlington Heights and Lincolnshire have teamed to educate their communities about the proposal and, if their referendums pass, they will band together to seek a reduced rate for all seven communities, which represent about 85,000 homes.

The villages would enter into a one-year contract with their chosen supplier.

“We believe we’d be able to obtain a very competitive rate because we’re a large buying group,” Neukirch said. “We have no reason to believe we won’t get at least as competitive a rate as Grayslake did.”

Palatine resident Peter Gorr said he’s sold on the referendum. He said the outcome won’t impact his own electric bill, as he relies on solar panels to supply heat for his home. He urged village officials to pursue suppliers of renewable energy as they identify alternatives to ComEd.

“I’m a little concerned that there seems to be no emphasis on the source of the energy,” Gorr said. “I think we should be supporting homegrown energy.”

Though she couldn’t say what the cost might be, Neukirch said customers would also have the opportunity to choose “green” energy through the aggregated program.

Palatine resident Scott Herr said he supports the referendum for financial reasons. ComEd customers in Palatine collectively pay about $30 million per year, he said, so even if the cost savings isn’t substantial to individuals, it all adds up.

“To put $5 million in the pockets of Palatine residents is a good thing,” he said.

After the presentation ended, Primack said she was satisfied with the knowledge she gained.

“I thought this was a very informational program,” she said.

She offered only one criticism.

“It just needs more publicity,” she said.

A final meeting will take place at at the Vernon Hills Village Hall, 290 Evergreen Drive.

For more information, email electricityagg@vbg.org or call the Buffalo Grove Village Hall at (847) 459-2525.