Will County Board Seeks Voter OK to Negotiate Electric Rates

JOLIET – The Will County Board today approved an ordinance that could eventually pave the way for lower electricity rates for residential and small business owners.  The lower rates would be sought through a coalition of municipalities organized and represented by the Will County Governmental League.

“Over the last decade, a lot has changed in the way that Illinois electricity is supplied,” said Chairman Jim Moustis.  “Unfortunately, some electrical customers have failed to benefit from lower electricity costs from retail and wholesale competition.  However, Will County now has the opportunity to save residents money on their electricity bill by negotiating rates, and we’re going to pursue that.”

Board member Tom Weigel (R-New Lenox) raised the question several months ago as to whether the county could negotiate lower rates for unincorporated residents.

“The savings for the average homeowner could be significant, as much as $200 annually,” said Weigel. “The idea of aggregation is really about the leverage that a large group can have when negotiating better rates.  This is a win-win, and we strongly encourage residents to vote in favor of the referendum question on the March 20 election ballot.”

To date, the Will County Governmental League has had 20 municipal members join their Will Utility Aggregation Group (WUAG) which would bid out to electricity suppliers on behalf of their members. 

Assuming the referendum passes, the board will need to hold a minimum of two public hearings before the ordinance can officially be adopted.  Residents will have multiple chances to opt-out of the program.  However, member communities of WUAG could realize as much as $31 million in total savings.

“This is a great opportunity for us to partner with our municipalities and lower the electric bills of our residents,” said Minority Leader Walter Adamic (D-Joliet).  “During tough economic times, this is one of the ways local governments can help put money back in the pockets of citizens.”

Illinois deregulated electricity in 1997 in order to open the marketplace to competition.  Before a January 2011 court ruling, electricity companies new to Illinois had no efficient way to deliver their product to consumers because the infrastructure is owned and maintained by ComEd.  The ruling allows new electricity providers to use the existing infrastructure and bill consumers through ComEd.

Residents participating in the aggregation program will see savings on the supply portion, which accounts for approximately 60 percent of their bill.  Most of the remaining portion of the bill comes from ComEd infrastructure charges and would not change.  Residents who choose to opt-out of the program will continue to receive their electricity directly from ComEd unless they choose an alternative on their own.

“We want our residents to have the most options available,” said Moustis. “The aggregation approach provides just that, and I think a lot of people will take advantage of it.”