Electric Aggregation Program
> Electric Aggregation Program
Two years ago, the Village started a Municipal Aggregation Program to lower residents’ electric costs. The current term on the program is ending with Integrys as the supplier, so the Village sought bids from numerous suppliers for our renewal. The Village is pleased to announce that Constellation has been selected as our new supplier for the aggregation program. This includes a three-year program with a fixed price of 6.621¢/kWh for bills received for June 2014 through May 2017.
As an eligible Village of Palatine residential or small business customer, you are automatically enrolled unless you decide to opt-out.
Here's how you benefit:
- Receive an exclusive electricity offer of a fixed rate of 6.621¢/kWh for your June 2014 through May 2017 billing cycles.
- Price certainty for 36 months.
- Receive one bill from ComEd, but with a low electricity price from Constellation.
- ComEd will continue to service all distribution lines and meters to your home, as well as respond to service issues.
- Receive 100% renewable energy.
If you have any questions or if you want to opt out, please contact Constellation at 1-800-718-1493 or visit them online at home.constellation.com/optout.
Aggregation Update as of October 2014
Following the passage of a voter referendum in March 2012, the Village of Palatine established an electric aggregation savings program to procure lower-cost electric supply for residents and small businesses via an opt-out program. The program has succeeded: average participating households have saved $299 to date, for a cumulative Village-wide savings of $6.6 million.
The Village renewed the program in May 2014 via a competitive bid process. Constellation, an Exelon Company, offered the lowest pricing at a fixed rate of 6.621¢ per kWh for three years ending May 2017. Additionally, 100% of electric supply consumed by program participants supports renewable energy sources such as wind, solar and hydro. To date, the renewable program has reduced CO2 output by 228,000 tons.
A new ComEd Price to Compare (PTC) was just released: The October rate is 7.487¢, and for the period November 2014 through May 2015 is 7.43¢. This compares with last summer’s rate of 7.6¢. In addition to the PTC, one must add a Purchased Electricity Adjustment (PEA) that floats monthly—to discover the actual, effective ComEd rate. For October, the PEA is a half-cent credit to ratepayers, bringing the effective rate down to 6.987¢. The PEA can be a credit or a charge of one half cent and changes every month. This means the PTC will be priced in a range of 6.93¢ to 7.93¢ for the period November 2014 through May 2015.
The fixed Palatine rate of 6.621¢ never has a PEA charge and therefore presents savings between 5 and 17 percent. There is no early termination fee to leave the program, nor any fee to enroll. Any resident or eligible small business may call Constellation at 800-718-1493 to enroll at the Village’s contracted rate and terms: fixed at 6.621¢ per kWh through May 2017.
Electric aggregation programs have been established by hundreds of communities across the State of Illinois, with 80 percent of the state participating. ComEd ratepayers were paying 9¢ per kWh for electric supply in the summer of 2010 but ratepayers are today enjoying much lower prices.
Prior to the legislation allowing the switch to competitive markets in 1999, Illinois ratepayers were charged one cent per kWh above the national average. Illinois electric prices are now two cents below the national average kWh cost. Competitive markets (and municipal aggregation) have resulted in substantial savings for Illinois residents.