Chalen Daigle
Executive Director
Northern Illinois
Governmental Electric
Aggregation Consortium
(815) 477-2090
Mark Burns
President
Independent Energy
Consultants
(330) 995-2675
Kelly Biemer
Constellation Energy
(410) 470-5224
NIGEAC ELECTRIC AGGREGATION PROGRAM SELECTS NEW SUPPLIER
FOR THE NEXT PROGRAM BEGINNING THIS SUMMER
McHenry County, IL (April, 2015 – Officials of the Northern Illinois Governmental Electric
Aggregation Consortium (NIGEAC), are pleased to report that they have completed negotiations
and selected Constellation New Energy (“Constellation”) as the group’s electric supplier for the
next term. NIGEAC communities include Algonquin, Genoa, Huntley, Lakewood, Ringwood and
Woodstock. Constellation will begin supplying the group with electricity flowing in July 2015
(August billing). Residents and small businesses in the current program have collectively saved
approximately $8 million in the first 2 ½ years of the program.
The NIGEAC recently completed an exhaustive bidding process and chose Constellation to serve
the Program at a fixed rate of 6.89 cents/kWh for a 2-year term. Constellation will replace the
program’s current supplier, Direct Energy. Chalen Daigle, Official Coordinator for the group said,
“We are pleased to have negotiated a rate that’s lower than the current rate.” Daigle added, “Our
offer with Constellation also includes an option to be supplied by 100% renewable energy
resources.”
Current participants and newly eligible residents and small businesses should expect to see OptOut letters from Constellation on or around May 6. The letters will arrive in clearly marked
envelopes mentioning the Aggregation Program on the outside and will include the respective
community logo. Newly eligible customers are those who receive their generation supply from
ComEd, or in other words, those who have not chosen a supplier on their own. Be on the lookout
for your letter and please read it carefully, it will explain the rate and terms and conditions. If you
wish to remain in the program or be added to it, simply do nothing. If you do not want to
participate, follow the instructions for opting-out within the 21-day period.
A similar letter will be sent to residents in the six communities who are not eligible for automatic
aggregation. These residents will be allowed to receive the same low rate, terms and conditions
but will need to contact Constellation to enroll. Once again, all of this will be explained in the
letters expected to arrive on or around May 6.
The NIGEAC and individual community leaders stress that residents need to wait for those letters
to arrive. Do not contact Constellation as they will not be ready to accept enrollments until after the
letters are mailed. Likewise, please do not contact your community officials as they are not staffed
to handle large volumes of calls. The letters you receive from Constellation will provide all the
information you need to make an informed decision and will include a list of Frequently Asked
Questions.
Under Illinois law, communities are able to form aggregated buying groups to purchase electricity
on behalf of their citizens. The governmental aggregator chooses an alternate supplier for all of the
members in its group. Customers may opt out of the aggregation program and shop for a supplier
or accept the standard rate offered by ComEd. ComEd will continue to deliver the electricity, read
meters, send monthly billing statements and maintain service for residents and small businesses.
#######
Electric Aggregation Program – FAQs March 2015
Supplier – Constellation Energy Services (Constellation) 1-844-257-8244
Member Communities
City of Genoa
City of Woodstock
Who is this NIGEAC Group I’ve been hearing about?
Illinois law allows communities to band together through an Intergovernmental Agreement process to help
achieve efficiencies amongst the participating communities. Six cities/villages within McHenry, Kane and
DeKalb Counties have come together to form the Northern Illinois Governmental Electric Aggregation
Consortium (NIGEAC). The NIGEAC is comprised of the Cities and Villages shown to the left.
Village of Algonquin
Village of Huntley
Village of Lakewood
Village of Ringwood
Ex-Officio Member
Chalen Daigle
Executive Director
McHenry County Council
of Governments
NIGEAC Consultant
Mark Burns
Independent Energy
Consultants, Inc.
What is an “opt-out electric aggregation program”?
Electric aggregation is a process which allows governments to pool, or aggregate, the electric usage needs of
residents and small businesses. This combining of electric usage opens the opportunity for the community to
get competitive bids to seek lower pricing for its residents and small businesses. Opt-out programs allow
individuals and businesses to choose to not participate. Opt-out programs generally have high participation
rates and thereby have increased bargaining power to negotiate lower electric rates from Alternative Retail
Electric Suppliers (ARES) for residents and small businesses than would an individual purchaser acting alone.
The process is being modeled after successful programs in other states that have over 10-years experience
with Governmental Aggregation programs.
What is an Alternative Retail Electric Supplier (ARES)?
An Alternative Retail Electric Supplier (ARES) is a company that supplies electric energy and operates as an
alternative electric supplier to your current local electric supplier. They supply the electric energy that is to be
consumed or used.
How is the group able to choose an Alternative Retail Electric Supplier (ARES) on my behalf?
In March 2012, many of the NIGEAC communities’ residents voted to allow the group to contract for an
electric generation supplier on their behalf. Algonquin joined the group following a successful ballot in March
2014.
Is our price for power fixed or does it vary?
In this program, the price you will receive for the generation related charges is fixed at 6.89 cents/kWh for
your August 2015 through July 2017 billing cycles. We have also negotiated a green power option for
residents to receive at a rate of 7.05 cents/kWh. You must call Constellation to choose this green power
option.
Who will be the supplier for the electric program?
Constellation Energy Services (Constellation) is the supplier for your August 2015 through July 2017 billing
cycles.
Who do I call if I have a problem with my electric service?
The local utility, Commonwealth Edison (ComEd), will continue to deliver your purchased electricity through
their wires, read your meters, and issue your monthly bills. You will continue to call ComEd at 800-334-7661
for emergency repairs, downed power lines, leaks, billing questions, etc.
Why does my service at the new rate begin a month late?
The start of your service is subject to the timing of your enrollment under ComEd’s meter reading schedule. If
your enrollment was not accepted by ComEd by the applicable meter reading date for your particular billing
cycle, your service will not start until the following billing cycle.
How do I know if I’m saving?
Your Price to Compare (PTC) is shown on page 1 of your ComEd bill. The PTC is the rate that ComEd will take
off your bill and replace it with the rate you’ve received from an ARES. Your new rate must be lower than
your PTC for you to save. To calculate the actual savings amount simply subtract your ARES rate from your
Electric Aggregation Program – FAQs March 2015
Supplier – Constellation Energy Services (Constellation) 1-844-257-8244
Member Communities
City of Genoa
City of Woodstock
Village of Algonquin
Village of Huntley
Village of Lakewood
Village of Ringwood
Ex-Officio Member
Chalen Daigle
Executive Director
McHenry County Council
of Governments
NIGEAC Consultant
Mark Burns
Independent Energy
Consultants, Inc.
PTC rate and multiple that by the kilo-watt hours of energy you consume in a month.
Will I get two bills?
No. You will continue to receive one bill from ComEd that shows their distribution charges and the supply and
transmission charge from Constellation.
Will I still receive a delivery charge from my local utility – ComEd?
Yes. Even though you have chosen a new supplier of electricity, ComEd continues to deliver the electricity to
our homes and businesses. Distribution charges, a meter charge and a monthly customer charge apply
whether you choose a supplier on your own, join a Governmental Aggregation Program, or remain supplied
by ComEd.
Can I remain on budget billing?
Yes. If you are on budget billing you will remain on budget billing. If you would like to switch to budget
billing, call ComEd at 800-334-7661. Budget billing, automatic payment, online billing, etc., are all controlled
by ComEd’s policies and are subject to change.
What if I’m with another supplier and would like to join the NIGEAC program?
If you have already chosen an ARES you will not receive an opt-out notice and are not eligible to be
automatically included. NIGEAC cannot interfere with a contract you freely entered into with an ARES. You
will need to contact Constellation seeking enrollment information. You will need to be aware of any
obligations in your current agreement; many include an early termination fee.
Can I exit this program without penalty?
You will be given an initial 21-day period to opt-out free of charge. As soon as you are enrolled by
Constellation, ComEd will send you a notice reminding you that your electric supply service is about to be
switched and you have 10 days after the utility accepts your enrollment to rescind the transfer. Finally, once
you are enrolled in the program, you can leave free of charge at any time for any reason.
Who is eligible for the program?
Your local utility company must be ComEd;
You must be a resident or small business owner located within the NIGEAC territory;
You must not have already chosen an ARES;
You must not be participating in ComEd’s Real-Time Pricing Program; and
You must not be a commercial customer using over 15,000 kWh/year.
How will I sign up for the program? Do I Have to Participate?
If you are already in the program or newly eligible to participate, you will receive an opt-out letter from
Constellation that explains the program rates, terms and conditions. The notice will also provide instructions
on how to remove yourself from the program, if you think it is not right for you or your family. Residents will
have 21 days to make that decision. If you would like to remain in the program, simply do nothing and you
will be automatically enrolled.
I’ve already opted-out of the Program. Why do I need to opt-out again?
Under Illinois rules and our Plan of Operation governing the Program, all eligible customers must be included
in the new offer. Although you may have opted out of a previous offer for the NIGEAC program, ComEd’s
rates and the rates of competing offers have changed. We have negotiated a new rate and realize that some
customers may change their minds regarding their inclusion in the Program.
Electric Aggregation Program – FAQs March 2015
Supplier – Constellation Energy Services (Constellation) 1-844-257-8244
Member Communities
City of Genoa
City of Woodstock
Village of Algonquin
Village of Huntley
Village of Lakewood
How did the NIGEAC develop such a program?
The NIGEAC is using the services of Independent Energy Consultants, Inc. (IEC,) an Illinois Commerce
Commission (ICC) licensed Agent/Broker/Consultant of electricity. IEC has designed, implemented, and
administered many successful aggregation programs and has over 150 community relationships through their
electric and natural gas aggregation programs.
Will small businesses, schools and churches be eligible?
Only commercial accounts using less than 15,000 kWh/year are eligible for automatic aggregation. Accounts
using more than this amount would need to contact our ARES supplier to seek enrollment.
Village of Ringwood
Does this affect my distribution charges or the wires coming to my home or business?
Ex-Officio Member
Chalen Daigle
Executive Director
McHenry County Council
of Govrernments
No. The Customer Choice program in Illinois provides residents the ability to choose an ARES to replace the
generation and transmission charges from ComEd. ComEd continues to maintain and bill for the distribution
charges to your home or business.
Will ComEd simply increase distribution charges to protect their profit?
NIGEAC Consultant
Mark Burns
Independent Energy
Consultants, Inc.
No. Illinois Commerce Commission (ICC) regulations prohibit ComEd from charging special or separate
distribution fees in municipalities that form a program. ComEd does not make a profit on the generation or
purchase of electricity. They simply pass on the cost of purchasing electricity to their customers. Since ComEd
simply passes on the cost of purchasing electricity to their customers, they are indifferent about your choice of
electric supplier. The utility companies make their profit on the delivery of the electricity through their
distribution network. They will not treat you any differently from a customer that does not switch to a
different electric supplier.
How much of the bill can I expect to be affected by the program?
Aggregation affects only the electric supply and transmission portions of the bill which amount to
approximately 65%-70% of the total bill amount. The distribution portion of the bill remains regulated and
that 30-35% of a typical bill goes to ComEd for maintaining the distribution network that brings power to our
homes and businesses.
Where can I learn more about electric deregulation and assistance programs?
The Illinois Commerce Commission has approved a number of additional assistance programs to help
customers with their energy bills. Eligibility and enrollment information can be found on the ICC’s website at
www.icc.illinois.gov/electricity. The “Plug In Illinois” website is a good source to learn about electric
competition in Illinois and find out how to choose a supplier. www.pluginillinois.org.