Crystal Lake has joined a growing list of communities investigating whether an electrical aggregation program is right for them.
McHenry County, Woodstock, Huntley, Lake in Hills, Cary, Lakewood and Marengo are also exploring aggregation, which aims to lower electricity bills for residents and small business owners by buying electricity at a negotiated group rate.
There are two program options: an opt-in, which would include customers who choose to participate on their own, and an opt-out, which must be approved by referendum and includes all eligible accounts unless the customer chooses not to participate.
Typically, opt-in customers save around 10 to 14 percent on their electrical bills, and opt-out participants save between 23 to 33 percent, according to David Hoover of the Northern Illinois Municipal Electric Collaborative.
The Crystal Lake City Council is considering the opt-out program, and could vote later this month to put a referendum question on the March ballot. The referendum would allow the city to get bids on electricity providers with the hope of obtaining prices lower than those offered by ComEd.
Residents would continue to call ComEd during service disruptions, and the utility company would continue to send residents their monthly bills.
Residents in Harvard and Fox River Grove have already approved referendums.
Crystal Lake could save around $3 million a year, or $175 to $200 per household, Hoover said.
Mayor Aaron Shepley and other council members are skeptical of the program, and recently directed staff to prepare a detailed report of the positives and negatives involved before the City Council votes on the issue.
“I don’t want to see us get a short-term gain and take it in the ear five years from now,” Shepley said. “We want what’s best for the residents long-term.”
Councilman Ralph Dawson agreed.
“I’m not against it, but I want all the information I can get,” he said.
NIMEC is an electric purchasing cooperative of more than 140 municipal and government agencies that have joined together to lower electricity rates.
Crystal Lake has worked with NIMEC since 2006 to receive a more competitive price on electricity for water and wastewater operations as well as for street lighting.
In 2011, NIMEC worked with 15 communities in their pursuit of municipal aggregation.
Close to 100 municipalities could have the opt-out program referendum question on the spring ballot, Hoover said.
www.twitter.com/lsynett
