Sentinel The Shorewood
Wednesday, May 23, 2012
Enterprise Publications • www.shorewoodsentinel.com
MOVING FORWARD SHOREWOOD MOVES AHEAD ON ELECTRIC AGGREGATION
“The down side of any
long-term contract is the volatility. If the cost of fuel were to plummet we could find ourselves trapped in a contract that would not be beneficial to the group.” Rick Chapman, mayor By Sherri Dauskurdas Staff Reporter
S
horewood residents are getting closer to improved electrical rates, as the village is moving forward on the process of electrical aggregation. Village trustees got an update this month from the Will County Aggregation Group, which sets up the requirements for bidders on the area’s power supply needs. Shorewood, together with 15 other Will County municipalities, will be negotiating electrical rates together. The plan would allow rates for the supply of electricity to be negotiated with alternative suppliers, but service would remain in the hands of ComEd. The idea is that a larger group, such as a municipality or a group of municipalities, would be able to negotiate better rates than a lone resident. In the case of the Will Electric Aggregation Group, there would be one contract and one price for all the towns participating.
Vol. 17 No. 24
Mayor Rick Chapman is a voting member of the WCAG, which is made up of all the communities that signed up. Each community has one vote. To that end, the agreement approved will set supplier requirements on bidders for credit, technology and customer assistance. It also outlines the need for a cost free opt-out option for residents who choose not to participate in the negotiated rate plan. According to the WCAG, regardless of the supplier, there will be an opt-out period with no fee to the resident, but termination fees may be applied once the contract begins. There will be provisions for residents who move to take their rates with them to participating communities. Additional requests outlined in the plan include a provision for price matching, so the rates residents receive are always the same or lower than what is offered by ComEd. Rate bids are being sought with one-, two- and three-year options. Chapman said the length of the procured contract is one of the biggest concerns. “Bargained rates need to be for a defined term, usually in 1 year increments,” Chapman said. “The longest usually bringing in the lowest bid, therefore the best savings to our residents. The down side of any long-term contract is the volatility. If the cost of fuel See ELECTRIC, page 2