What is the Municipal Electricity Choice Program?

Illinois "Opt-Out" Electricity Supply Cost Savings For Residential & Small Commercial Retail Customers

The purpose of deregulating electricity markets is to increase supplier competition and bring about reduced supply costs for consumers. Illinois residential and small commercial retail customers can finally benefit from deregulation. 

Recent Illinois legislation now permits Municipalities to propose a public referendum (the next public referendum will be held on Election Day, April 9th, 2013) which, if approved, entitles municipal authorities to put their residential and small retail business electricity usage, or "load", out to bid to Alternative Retail Energy Suppliers (ARES) in order to save money. This municipal aggregation program falls under the Illinois Power Agency Act and may be found at "20 ILCS 3855/1-92".

Opt-Out Legislation

Opt-Out legislation is an extremely effective tool, widely used to spread the benefits of electricity competition to residential and small commercial retail customers with the due diligence of a municipally-organized process. Though these benefits are hard to deny, the legislation still allows for any residential or small commercial account holder to "Opt-Out", should they wish not to participate. Several well-publicized public notifications will be made explaining the Opt-Out process. 

The group buying power generated by assembling such a massive aggregation of accounts is substantial and can increase savings by nearly 20% when compared to standard individual offers currently in circulation. Negotiating strength in general, is also greatly enhanced and is far more likely to result in contract language that will benefit those who choose to enroll in the program.

Saving Money on Electricity

Energy markets are separated into two distinct markets, the wholesale market and the retail market. The retail market is represented by your local utility, Ameren or ComEd, and various ARES. Utilities purchase electricity from wholesale energy markets in specific amounts for specific lengths of time, resulting in utility rates established for the end user. Because ARES are not necessarily bound by the same set of rules that utilities are, they are able to take advantage of certain wholesale market conditions with the intent of undercutting existing utility rates. If wholesale markets drop after the utilities have made their purchases and established rates based on those purchases, ARES are quick to capitalize so they can offer lower-priced electricity, as it becomes available, to its customers. Currently, Opt-Out program savings in Ameren and ComEd show potential savings in excess of 28% to 32%. Savings apply only to the supply portion of your utility bill. The delivery and transmission components of your electricity bill will not be affected and will remain the responsibilities of the utilities. This portion of your bill is not deregulated. Should a power outage occur, please contact your utility directly.

Voters from the following 55 Municipalities and Counties within the Ameren and ComEd service territories, including more than 283,748 households, as well as a substantial number of small commercial retail accounts, voted YES in 2012, to pass the resolution allowing their local governments to purchase electricity on an enormous scale on their behalves. This municipal aggregation is managed by Good Energy, L.P.:

The Committee for Municipal Electricity Choice operates a municipal aggregation managed by Good Energy, L.P., with Municipalities and Counties totaling a population of more than one million in Illinois, the resulting buying power of which will help secure the lowest rates possible. Given current market conditions, electricity supply cost savings are forecasted to be as high as approximately $165 per household in Ameren for June 2012 to June 2013.  In ComEd, savings are even more robust - for the average residential NON-Space Heating account, savings are estimated to be as high as $330/year, while space heating accounts will likely save between $111 and $168/year. Savings for both utility service territories will be re-evaluated when rates are reset by the utilities in June 2013. 

ALL RESIDENTIAL AND SMALL COMMERCIAL ACCOUNTS WILL CONTINUE TO RECEIVE ONE BILL. 
ALL DELIVERY AND TRANSMISSION COSTS WILL CONTINUE TO BE PAID TO AMEREN OR COMED. 
RESIDENTS WILL RECEIVE EXACTLY THE SAME LEVEL OF SERVICE FROM THEIR RESPECTIVE UTILITY.