Northbrook May Pull The Plug On ComEd To Save Money

When it comes to saving money on the electric bill, Northbrook residents may have the power to do something a little more substantial than simply turning off the lights. 

Along with eight neighboring communities, the village of Northbrook is considering the pros and cons of “electric aggregation,” a purchasing program that lets villages bundle residential and business accounts, then buy electricity in bulk from an ComEd competitor such as FirstEnergy Solutions or Nicor Electric. A law passed in 2009 made such arrangements possible, and since then at least 19 Illinois municipalities have entered into agreements with alternative electric suppliers, which require a community vote by referendum.

Village staff presented a report on the program at a board meeting Tuesday night. If Northbrook went forward with the program, any residents or business owners could opt out and choose to remain with ComEd as a supplier or find their own supplier. Residents and businesses are already able to secure alternate arrangements with electric suppliers on an individual basis. In any situation, ComEd will still distribute the electricity, even if it doesn’t supply it. 

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“This is really a way that villages can use their buying power to help residents,” said Trustee Kathryn Ciesla, who was already familiar with the concept. 

A handful of municipalities in the Chicago suburbs have already signed contracts with alternate energy suppliers. , while the villages of Oak Brook, Lincolnwood and Grayslake have teamed up to buy electricity together. Several others are in the process of considering the program, according to assistant village manager Phil Kiraly.

Under the agreement Oak Brook, Grayslake and Lincolnwood have signed with the electrical provider Integrys Energy Services Inc., residents can expect to save 29 percent on their electrical bill and businesses can expect to save 27 to 30 percent, depending on the season.   

Overall, Oak Brook village manager David Niemeyer says the switch could save his village $2.5 million a year, if every customer opts in. 

“I think once people understand this, they realize it’s a big deal,” he said. Niemeyer added that the switch has required some public education to help consumers understand that it’s only the electric supplier that’s changing. ComEd will continue to distribute the electricity, meaning the same utility is their contact for outages and setup. 

If Northbrook’s village board votes to put the question before residents, it could go on the ballot as soon as the March 2012 referendum. The village is considering partnering with several other local municipalities in order to save money on the legal fees required to draft the agreement, according to assistant village manager Phil Kiraly.

Ultimately, if voters approve electric aggregation, the village will put its electric package out to bid to various companies on a state-certified list. Once a provider is chosen, residents have a set period of time in which to opt-out. 

Trustees will consider the matter at the next village board meeting, which is set for 7:30 p.m. Tuesday, Nov. 29, at .