About Municipal Aggregation:
The State of Illinois enacted legislation enabling municipalities to take advantage of the deregulated electric market by engaging in municipal aggregation of residents’ electric accounts with the goal of reducing their ComEd bills.

Municipal aggregation allows local governments to bundle – or aggregate – residential and small commercial retail electric accounts and seek bids for a lower cost source of power, similar to how municipalities negotiate contracts for waste disposal or cable television.

All eligible residents and small businesses are automatically enrolled. Those who don’t want to participate may “opt-out” of the program. This aggregation program can only be implemented when the voters approve the ballot issue in a primary or general election.

After a ballot issue is approved, NIMEC will solicit bids for the Village’s aggregated load. Nineteen municipalities in Illinois have already contracted to purchase power at rates significantly lower than ComEd’s. Whether the municipality moves the residents’ load or not, residents would continue to call ComEd in the event of a service disruption. And ComEd will continue to send the residents their monthly bills.

TESTIMONIALS: What mayors and administrators are saying about NIMEC’s work on Municipal Aggregation for Residential Electric Services in Illinois:

When considering the intimidating language in the state statute, the support and professional assistance received from NIMEC made the Electric Aggregation process simple.  From the “boilerplate’ forms provided to the personal attendance by a professional consultant at our Public Hearings, NIMEC was there to walk the City Council through the process.  In these tough economic times, NIMEC is one of the best things to happen to the citizens of the City of Morris in a long, long time! 

Mayor, Morris IL

Thank you on behalf of all the people you helped in the Village of Glenwood.

Mayor, Glenwood IL

We had a great experience with NIMEC.  They first introduced us to aggregation, then led us through the entire process. Our legal costs were kept to a minimum by using NIMEC’s standardized documents.  NIMEC saved our staff significant amounts of time; I’d definitely use them again. 

City Administrator, Harvard IL

NIMEC is a very professional company to work with.  They walked the Village through the aggregation process and met personally with the Village along the way.  Their promptness, organization and detail were exemplary.

City Administrator, Elburn IL

NIMEC has been a tremendous resource in passing the electric aggregation referendum.  His assistance and knowledge during this process has been invaluable.  I would not hesitate in using NIMEC in the future. 

Mayor, Crest Hill IL

The experience working with NIMEC has been smooth sailing; the knowledge base of electric aggregation that was shared with the City was instrumental to the program’s success.  As this was a big change for the community and a large-scale program, NIMEC was up to the task at hand and always went above and beyond to assist not only City Staff but also residents that inquired about the program.

City Administrator, Wood Dale IL

Once approved by voters, NIMEC provided a sample Plan of Operation and Governance, managed the bid process, and assisted in the negotiation of the contract.  There were a few small glitches, as with any new program, and NIMEC was ready, willing, and more than able to handle those as they came up.  Overall, NIMEC was an important asset to have throughout the entire process.

Finance Director, Sugar Grove IL

NIMEC was well prepared for our needs. From start to finish, David Hoover and NIMEC were available to assist us through the process. I would recommend NIMEC to any municipality that is considering Electrical Aggregation.

Mayor, New Lenox IL

MUNICIPAL AGGREGATION FAQS:

Q: What is Municipal / Electric / Community Aggregation?
A: Aggregation is the process in which a municipality pools together the electric load of all residents in order to seek competitive bids from power suppliers. The State of Illinois deregulated the energy market and enacted legislation allowing municipalities to negotiate with electric suppliers for a lower electric rate for their residents. This is similar to garbage disposal contracts the municipality negotiates on behalf of the community. The Village must pass a referendum in the March 20 election to allow them to solicit bids. After the referendum passes, the village will hold two public hearings and then go to bid.

Q: Is the Aggregation Program a scam?
A: No, this is “for real.” The municipalities seek to negotiate lower electric rates for all residents and small businesses.

Q: What do residents have to do be in the aggregation and get the lower rate?
A: They need do nothing. Residents will automatically be included in the new aggregation program.

Q: What is the ComEd rate?
ComEd’s current annualized rate is 7.7¢ per kWh through the period ending May 31, 2012. Municipalities aim to get bids for lower rates. Going to bid with the larger aggregated load puts the municipality in the position of commanding more aggressive pricing (lower rates) from the suppliers than is currently offered through ComEd.

Q: What if residents don’t want to participate in the aggregation? Can they stay with ComEd?
A: Residents are not obligated to participate in the aggregation and can stay with ComEd. Residents will receive two opportunities to “Opt Out” of the aggregation program: When a new supplier is selected, they will receive a letter with an Opt Out form; ComEd will send a second letter. Residents must return the form in the mail, or call the phone numbers provided. We cannot opt you out; residents have to do that themselves by returning the form.

Q: Can residents Opt Out before the program begins and return later to the supplier that won the bid in the aggregation?
A: Yes.
           
Q: What is the referendum question?
A: “Shall the village/city have the authority to arrange for the supply of electricity for its residential and small commercial retain customers who have not opted out of such program?  YES______ NO______”

Q: Are commercial accounts included in the aggregation?
A: Currently, accounts in the 0-100kW category are included. To determine this, simply look on the ComEd bill: one-third of the way down, are the service dates. To the right of that, is the rate Customer Group. If it says, “Commercial 0 – 100kW,” and the commercial account is located within the city limits, it will be included.

Q: What happens if the power goes out? Whom do residents call?
A: Residents should continue to call ComEd with any service issues. ComEd will still deliver electricity. Residents will simply have a new supplier. (ComEd is no longer an electric supplier; they only deliver the power, and maintain the network of wiring, stations, etc.)

Q: Will residents then receive two separate bills—one from the deliverer, the other from the supplier?
A: No. Residents will continue to receive a bill from ComEd, and will remain on any budget billing payment plan they currently have with ComEd: no changes there. Residents will still have an account with ComEd. The only difference on the bill is the new lower rate and the new supplier’s name will be listed.

Q: If a resident is getting offers from retail electric suppliers to switch for lower rates. What should they do?
A: If residents switch their electric account to a new supplier prior to the aggregation program, they will not be included in the community aggregation. If a resident switches to a new supplier, and later wants to join the community aggregation, they may (possibly) have to pay a termination fee. Residents should review the details of any offers. If a resident or small business does not switch to a new retail supplier, they will automatically be included in the aggregation program.

Q: What happens with ComEd; won’t they increase charges to keep their profit margins?
A: ComEd is actually indifferent whether residents choose another power provider. Residents’ choice of supplier has no impact on ComEd as they only deliver and do not supply the power. ComEd processes the bills for these supplier companies, and passes 100 percent of the revenue back to the company that generates the power.

Q: What if the rate residents in the municipality currently have is lower than the power suppliers’ bids?
A: No action will be taken. The municipality’s residents’ electric accounts will not move to a new supplier. The referendum does not mandate the municipality to switch to a new provider