Referendum Could Mean Lower Electricity Rates

While referendums often draw ire from taxpayers, one to appear on the March ballot will likely get Oswego residents better electric rates.

Through the Illinois Power Agency Act, municipalities can negotiate power supply agreements for their respective residents and small businesses with voter approval.

The measure was introduced to Mark Horton, the village's director of finance, by the Northern Illinois Municipal Electric Collaborative, who is spearheading the aggregation process.

Oswego is a member of NIMEC.

By soliciting bids from power suppliers to see if municipalities can beat the ComEd rate, residents could see a 20 percent savings each year through the initiative, according to NIMEC officials.

“Voter approval is the first step,” Horton said. “Once that happens we can aggregate electricity consumption.”

Village residents currently get their energy from Exelon, as delivered by ComEd. (Since 2003, ComEd has been an energy delivery company only. Parent company Exelon generates the electricity ComEd delivers.) Under the new proposal, Oswego would negotiate for lower rates on behalf of residents and small businesses.

Several Illinois municipalities, including Crest Hill, Fox River Grove, Glenwood, Harvard, New Lenox, Sugar Grove, Elburn and North Aurora have passed referendums allowing them to seek out lower rates.

The village of Montgomery is considering a similar proposal.