Grayslake power users to save $4M during next 2 years

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Updated: December 23, 2011 1:48AM

Consumers of electricity in Grayslake will save more than $4 million over the next two years thanks to volunteer participation in the village’s new Electric Aggregation Program.

The Village Board has authorized a power supply agreement with Integrys Energy Services, an alternative electrical provider that will supply electricity to those participating in the village’s electric aggregation program beginning in January. The company was the low bidder from several received recently.

The agreement calls for residential fixed rates over the next two years of 5.52 cents per kilowatt hour, and 5.45 cents per kwh for commercial customers.

Village Manager Mike Ellis said the rates reflect a 30 percent reduction from the prevailing ComEd power rates.

“We project savings to Grayslake customers will exceed $2 million annually during the two-year term,” he said.

Grayslake took advantage of a new state law offering municipalities the opportunity to select another power provider besides ComEd who can offer cheaper rates.

Electric aggregation, or the voluntary pooling of power customers, is becoming a popular alternative choice for many communities faced with rising electric rates. To initiate the process a referendum is required. If approved, competitive bids are then sought and considered by a municipality from alternative power companies.

These bids must be lower than ComEd rates or they are not considered. However, ComEd would still distribute the power through its transmission grid. On your monthly bill you would notice separate charges for the electricity you purchased from the alternative power company, and ComEd’s charge to transmit that electricity to you.

Customers have free choice. They can choose to remain as ComEd customers, or opt for a cheaper alternative power supplier.

Grayslake held their referendum last April, and it was enthusiastically approved by a margin of 80 percent.

In September, the village decided to join with Lincolnwood and Oak Brook to expand their purchasing muscle when bidding recently for alternative service. Yet each municipality will operate their own program independently.

Grayslake Mayor Rhett Taylor said his village was one of the first in Illinois to take advantage of the new state legislation. He thanked staff for their initiative in establishing it.

“Participation in the program is completely voluntary. But I think it will really help our residents and businesses save money on their electric bills,” he said.

Trustee Jeff Werfel said he was proud that the village ”blazed a trail for others to follow” and said the potential savings was impressive.