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Towns try to get word out to residents on plan to purchase electricity

In partnership with other communities, Palatine will be trying to get the word out on an upcoming March referendum that would allow the group the right to search for an electricity provider on behalf of residents.

Officials from Palatine, Arlington Heights, Buffalo Grove, Lincolnshire, Long Grove, Vernon Hills and Wheeling are working together on passing the so-called electricity aggregation proposal, which would give the village permission, but not require it, to get its electricity through companies other than ComEd.

Meetings for residents of all seven communities will be held at 7:30 p.m. Feb. 21 at Arlington Heights Village Hall, 33 S. Arlington Heights Road; at 2 p.m. Feb. 29 at Buffalo Grove Village Hall, 50 Raupp Blvd.; and finally at 7 p.m. March 8 at Vernon Hills Village Hall, 290 Evergreen Drive. The referendum vote for all communities is March 20.

While electricity aggregation referendums are increasingly common — an estimated 20 communities in Illinois have already held such votes — the seven towns are taking a more unusual route by partnering with each other. Palatine Deputy Village Manager Mike Jacobs said the idea is to get a better bulk discount by having more potential customers, all while not getting too large to scare off smaller or mid-sized suppliers.

Jacobs said the communities already work together on a variety of issues, so electricity aggregation seemed logical.

“The communities just pulled together and said, ‘This is something we should look at,’” he said.

The referendum is possible due to a change in state law in 2009. The change both deregulated the industry and allowed an opt-out program, in which all residents and businesses would automatically be enrolled in the program if a new energy provider is picked. However, individuals can opt out at any time and go back to Exelon energy. The opt-out concept is to facilitate a bulk discount by having all residents automatically enrolled.

ComEd would still manage the infrastructure, delivery and billing. Residents would still receive all their billing through ComEd, and would make payments to the company, not the village. The company would also still be responsible for outages, infrastructure improvements and maintenance.

If a favorable agreement with a third-party supplier is not reached, the communities can simply choose to stick with Exelon energy.

Jacobs said the communities would work together after the vote, but acknowledged there is always the possibility that not all voters would give each town a yes vote.

“Obviously, it’s up to residents in each community to pass it,” he said.

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