Integrys Energy Services has been chosen by the City of Chicago to supply electricity to about one million residents until 2015. The municipal aggregation supply agreement between the city and Integrys Energy is the largest in the nation.
The agreement is expected to save non-shopping Chicago Commonwealth Edison (ComEd) customers an average of $130 to $150 total until the end of the contract in 2015. Customers can expect to see up to 25% savings on their electricity bills between February and June of 2013, but the exact rates will not be finalized until after the contract is officially approved.
Eight retail electricity providers bid on the contract with the City of Chicago. To bid, each provider was required to supply 100% non-coal generated electricity as well as be able to supply electricity at the rates of or below the default utility provider, ComEd. Currently, ComEd’s price-to-compare is 8.319 cents per kWh and is scheduled to decrease in June of 2013.
Electricity Aggregation in Illinois
Electricity aggregation has become popular in Illinois over the past decade. The state is deregulated, meaning that customers can shop around for their electricity supply. Municipalities, on behalf of their residents, are also able to shop around for their electricity supply through municipal aggregation supply agreements.
In Chicago, residents and small businesses that have not already chosen a retail electricity supplier will automatically start receiving their electric supply from Integrys Energy at no cost. At any time, customers can chose to opt out and choose their own retail electricity supplier. It’s not possible to estimate how many customers will opt out and chose their own provider, but the fact that none of the electric supply is generated from coal can easily translate into significant savings from other providers, since coal generated electricity is often cheaper. To compare the rates and plans in your area, type in your ZIP Code at the top of this page.
For all customers in the ComEd territory, from no matter where their supply comes, ComEd will still deliver the electricity, maintain power lines and other infrastructure, read meters, and send and collect bills.
Update – January 11, 2013: Competition Offering Lower Electric Prices than Chicago Aggregation Supplier