Municipal Electric Aggregation

Electric Aggregation Advisory Committee

August 22, 2012

What is municipal electric aggregation?

When a municipality negotiates or bids for an electric supply rate for residential and small commercial customers within the municipality.

The supplier then provides power supply through ComEd.

ComEd bills customers based on new rates.

Why pursue electric aggregation Municipalities are able to bring significant

savings in electric supply rates to residents. ComEd Rate:

Electric Supply: 6.214 cents per kWh (June-Sept.)

7.722 cents per kWh (Oct.-May)Transmission: 0.820 per kWhTotal Rate: 7.034 / 8.542 cents per kWh

Aggregation Experience (ComEd territory):Electric Supply: 4.056 to 5.99 cents per kWhTransmission: 0.820 per kWhTotal Rate: 4.876 to 6.81 cents per kWh

Why is the savings possible? Illinois Power Agency regulations on electric

utilities prohibit them from profiting on electric supply.

IPA regulates the purchase of power and sets rates for utilities.

Current electric market is extremely low Recession Historic low natural gas prices Competition among suppliers

Future of electric aggregation

Savings are likely short term Predicted market upswing in 2014 New EPA regulations in effect in 2015

Opt-out Process Referendum

Filed for November Election Public Information Profess

Plan of Operation and Governance Provide for universal access and equitable

treatment to applicable residential customers How demand management and energy efficiency

services will be provided to each class of customers Responsibilities of municipality and consultant

Public Hearings Reviews the Plan of Operation and Governance Two required

Next Steps Consultant selection

September Public Information

Now through November Draft Plan of Operation and Governance

Prior to November referendum Referendum

November 6 Public Hearings

Scheduled if referendum is successful