Buffalo Grove residents will soon have access to less expensive electricity rates.
The village, along with Arlington Heights, Lincolnshire, Long Grove, Palatine, Vernon Hills and Wheeling, has entered into an agreement with Integrys Energy Services, Inc. to provide electric supply services which will save eligible customers more than 42 percent off their current electric supply. The price reduction refers to the electricity supply portion of the bill only, not the cost of delivery.
The villages secured a rate of 4.775 cents per kilowatt hour compared to ComEd’s current residential supply rate of 8.233 cents per kilowatt hour, village officials announced Monday. In addition to a substantial savings on electricity supply costs, the new program will ensure that the fees paid by participants for electricity generation go to purchase renewable energy certificates from wind resources.
The seven municipalities began working together in 2011 and created a consortium in order to pool their resources and buying power, making themselves one of the largest consortium groups in the state. The consortium worked with Mark Pruitt representing Intelligent Power Partners as their consultant. In March, voters in all allowing their villages to pursue lower rates through aggregation.
“A renewable offering, or green energy option, was important to the Village,” Jeff Braiman, Buffalo Grove village president, said in a statement. “Residents should look forward to a not only lower electricity rates, but also knowing their payments for electricity supply service are helping fund renewable energy sources.”
“We look forward to providing electricity supply service to the Northwest Consortium communities and adding renewable energy certificates to our mix,” said Brian Bowe, Illinois Direct Mass Market Manager for Integrys Energy Services. “These are exciting times in the State of Illinois with so many communities moving forward with electric aggregation. Integrys is proud having been selected to supply the Northwest Consortium.”
Eligible residents and small commercial customers will receive a letter from the village and Integrys in the next two weeks describing the program. Individuals are recommended to be cautious of offers from other firms seeking to contract with customers. The Village recommends comparing the rate of service and all terms and conditions before signing a contract or agreement.
Eeligible customers will become part of the Villages’ program automatically — no action is required unless an eligible customer desires to opt-out. Individuals who have expiring contracts with another supplier would be required to opt-in to the village's program if they are interested. Individuals already served by Integrys will receive information from Integrys on their ability to switch to the aggregation program’s favorable electric rate.
An early termination fee of $25 will apply if a customer leaves the program after the rescission period, which ends five business days before the switch to Integrys’ service is to occur.
The rate of electric supply will take effect after the first meter read after enrollment. The village’s agreement will extend through the last meter read date on or before June 30, 2013.
Further information about the program will be posted to the village’s website by May 6.