Wilmette Power Purchasing Program

Update
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The Village Board will hold two public hearings regarding the Plan of Operation and Governance. The hearings will be held during the Village Board Meetings on May 8 and 22, beginning at 7:30 p.m. in the Village Board Conference Room.

Click here to view the draft Plan of Operation and Governance. This is a draft document. For the most up to date document, please contact John Prejzner at (847) 853-7502 or prejznerj@wilmette.com.

Click here to view the PowerPoint presentation for the public hearings.
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On the March 20, 2012 election ballot, a referendum was held regarding electrical aggregation. The question asked Wilmette residents “Shall the Village of Wilmette have the authority to arrange for the supply of electricity for its residential and small commercial retail customers who have not opted out of such program?” Wilmette voters approved the referendum with 75.4% of the votes in favor.

Electrical Aggregation, permitted through state statues deregulating ComEd, enables municipalities to seek alternate suppliers of electricity in hopes of lowering rates. The Village’s aggregation program is called “Wilmette Power Purchasing Program” or “WP3”. This in no way alters the actual delivery of electricity, as this service would still be provided by ComEd.

The Village will seek bids from alternate suppliers and bundle all residential and small commercial electrical accounts. If rates are found to be below ComEd rates at the time of the bid, all eligible accounts would be automatically transferred to the alternate supplier, unless customers elect to opt-out during the enrollment period. Those who have already switched to an alternate supplier would not be affected by the program.

For additional questions, please contact John Prejzner, Assistant to the Village Manager, at (847) 853-7502 or prejznerj@wilmette.com.

Click here for an informational brochure on WP3.

Click here for a copy of the PowerPoint presentation from the March 13 informational meeting.

Click here for a copy of the RFP for Lakeshore Power Alliance

Residents have reported to the Village that they have received telephone calls from one or more alternative electricity suppliers falsely stating that a company other than ComEd is the Village’s new electricity supplier and asking that resident for their ComEd account number. Please be advised that such solicitations are false and misleading. Unless voters approve the Wilmette Power Purchasing Program (WP3) referendum, no residents can be or will be customers of any supplier other than ComEd, unless the resident themselves has personally chosen their own alternative power provider.

Frequently Asked Questions

1. What is deregulation?

On December 16, 1997, the State of Illinois implemented a plan to deregulate Commonwealth Edison (“ComEd”). Under this plan, ComEd no longer generates electricity for its customers but continues to provide power generated by others through its distribution system.

2. What is electrical aggregation?

Electrical aggregation is a program that allows local governments to bundle – or aggregate – residential and small commercial retail electric accounts and seek bids for a cheaper source of power. Currently, ComEd customers receive power at a price set each year by the Illinois Power Agency, a not-for-profit quasi-governmental body that buys electricity on the wholesale market on behalf of utility customers. By bundling residential and small commercial accounts, municipalities can go out into the open market to seek a lower rate for electric power for property owners. Large industrial and commercial customers already have this option, which has only recently become available to residential and small business property owners.

3. What does opt-out mean?

All residential and small commercial electricity users will be included in the customer base unless they affirmatively choose not to participate. The opportunity to opt out will be available to customers after the bids are received and the electric rate and identity of the supplier are made known to customers.

4. Who will be ineligible for the WP3 program?

Business customers with an annual usage of 15,000 kWh or higher are not eligible for the program.

Also, residential customers enrolled in the Residential Real Time Pricing Program (RRTPP) will not be automatically enrolled in WP3. However, residents participating in RRTPP can switch to WP3 if they choose to do so.

All other residential and small commercial customers would be eligible.

5. I have already signed up for an opt-in program on my own. Am I still eligible for the Village’s WP3 program?

If you have already signed up with an alternate electrical supplier on your own, you would not be switched over to the Village’s program. Upon termination or expiration of your individual contract, you would then be eligible to switch over to the Village’s program if you choose to do so.

7. The Referendum passed; what happens next?

Passing of the Referendum does not mean the Village will definitely switch providers. It only gives the Village the ability to do so. Switching providers depends on the rates obtained by the Village.

The Village has developed a Plan of Governance (POG). The POG is a required document that outlines how the opt-out program would operate. It describes the procurement process, opt-out process, billing, new customers, and more. Prior to adopting the plan, the Village is holding two public hearings to allow for public input on May 8 and 22.

Upon approving the plan, the Village will begin working to identify a new supplier to secure a lower electrical rate for residents and small commercial customers.

8. When will the Village seek competitive bids?

The Village will release a Request for Proposals shortly and anticipates announcing the new supplier in June.

9. What will be the cost to the Village?

Due to the complexities of the program and the bidding process, the Village has partnered with the Illinois Community Choice Aggregation Network (ICCAN). The costs for hiring ICCAN will be paid for out of the Village's operating fund and will not impact the rate negatively whatsoever.

10. Will the Village be partnering with any other municipalities?

The Village has entered into an intergovernmental agreement with the Village of Kenilworth. Partnering with other municipalities is beneficial as staff time and costs associated with ICCAN is shared by all participating municipalities and the total electrical load being bid out is larger, providing a potential for lower rates.

11. Will my electric bill increase? What happens if the ComEd rate drops below the new rate?

The goal of WP3 is to decrease electrical bills. Electric bills will not increase as a result of this program. If the bids are higher than current ComEd rates, then bids will be rejected and the current supplier will be kept.

12. How transparent will this process be?

Residents and small commercial businesses will have access to information about the referendum and bid process through local media coverage, public hearings, the Village’s newsletter and website, and direct mail. If the Referendum passes, the Village will host two public hearings prior to the adoption of the POG. During the bidding and purchasing process, public announcements will be made to keep the community informed.

13. Will residents receive a separate bill for the supply of electricity?

No, the energy supply charge is already on ComEd bills and will remain there. The bill format will remain the same as it does today. ComEd customers will receive the bill via mail or electronically and will remit payment in the same current manner.

14. What if my power goes out – will I need to call the company providing the power?

No. ComEd is responsible for ensuring that electricity flows through its distribution network to all homes and businesses in Wilmette. Aggregation would not change how ComEd responds to outages.

15. Will the Village Government receive any benefits by operating this program?

The Village derives no additional benefit other than reducing electrical rates for its residents and business owners. The ultimate goal of the process is to save residents and business owners money on their electric bills.

16. If the new rates come in 25% lower than ComEd rates, will I save 25% on my bill?

Your electrical bill is comprised of three different portions: electricity supply services, delivery services, and taxes and other. Only the electricity supply portion will change with the opt-out program. If the Village obtains rates that are 25% lower than current rates, you could see a savings of approximately 14% off your entire bill, depending on your usage.

With 25% lower rates, an average resident (728kWh per month) would save approximately $170 per year.

For a detailed explanation of your bill and where you would see savings, click here.

For additional questions, please contact John Prejzner, Assistant to the Village Manager, at (847) 853-7502 or prejznerj@wilmette.com.