Municipal Electric Aggregation Electric Aggregation Advisory Committee August 22, 2012.

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Presentation transcript:

Municipal Electric Aggregation Electric Aggregation Advisory Committee August 22, 2012

What is municipal electric aggregation?  When a municipality negotiates or bids for an electric supply rate for residential and small commercial customers within the municipality.  The supplier then provides power supply through ComEd.  ComEd bills customers based on new rates.

Why pursue electric aggregation  Municipalities are able to bring significant savings in electric supply rates to residents.  ComEd Rate: Electric Supply: cents per kWh (June-Sept.) cents per kWh (Oct.-May) Transmission: per kWh Total Rate:7.034 / cents per kWh  Aggregation Experience (ComEd territory): Electric Supply: to 5.99 cents per kWh Transmission: per kWh Total Rate: to 6.81 cents per kWh

Why is the savings possible?  Illinois Power Agency regulations on electric utilities prohibit them from profiting on electric supply.  IPA regulates the purchase of power and sets rates for utilities.  Current electric market is extremely low  Recession  Historic low natural gas prices  Competition among suppliers

Future of electric aggregation  Savings are likely short term  Predicted market upswing in 2014  New EPA regulations in effect in 2015

Opt-out Process  Referendum  Filed for November Election  Public Information Profess  Plan of Operation and Governance  Provide for universal access and equitable treatment to applicable residential customers  How demand management and energy efficiency services will be provided to each class of customers  Responsibilities of municipality and consultant  Public Hearings  Reviews the Plan of Operation and Governance  Two required

Next Steps  Consultant selection  September  Public Information  Now through November  Draft Plan of Operation and Governance  Prior to November referendum  Referendum  November 6  Public Hearings  Scheduled if referendum is successful