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Park Forest, IL 60466
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Village of Park Forest - Administration News

Posted on: June 20, 2014

What did that letter about energy mean?

Mick 3_web.jpg

Residents participating in the Village's electric aggregation program -- a program that goes out to the energy market on behalf of residents to find the best rates -- likely received a letter in the mail this week alerting you that the contract with the supplier for the last two years, FirstEnergy Solutions, is ending. Below is a memo from Village Manager Tom Mick on what exactly that letter meant.


Dear Residents,

For those of you participating in the Village’s electric aggregation program, you likely received a letter in the mail this week from FirstEnergy Solutions. First Energy was the Village’s electric aggregation power supplier. The Village will not be continuing the electric aggregation program after the contract with FirstEnergy expires in August. This is because Park Forest went to the energy supply market in a bidding process a couple of weeks ago but was not successful in getting an electricity power supply rate that could beat what ComEd is currently offering. Companies responding to the Village’s request for bids included Constellation, FirstEnergy Services, Homefield Energy, Integrys and Verde. The most competitive bid received was 9.005 cents per kilowatt hour as proposed by Homefield Energy. Comparatively, ComEd’s rate varies between 7.75 to 7.93 cents per kilowatt hour based on seasonality.

Scroll to the bottom of this memo for a link to view the bid results document.

With the Village’s 2-year aggregation program expiring with meter reads in August, participating electric aggregation residents will have several options at their disposal and they are as follows:

• Do nothing and you will transition back to ComEd’s power supply source (billing will continue to come from ComEd). The ComEd rate is now lower than all bids received for the Village’s aggregation program this year. Although the ComEd rate can adjust every month, it is estimated to average 7.8¢ per kWh through May 2015. If a resident remains on ComEd’s service but does not switch to another supplier within two billing cycles of the August meter reading, the resident will be required to remain on ComEd service for 12 months. Residents will receive a "Confirmation of Drop" notice in the mail from ComEd in July which explains this transition.

• Call FirstEnergy Solutions as indicated in the termination letter that residents received, and check their offers. Be sure to check for length of contract, any fees, or floating rates before signing up.

• Go to www.pluginillinois.org and view options for comparing prices and terms being offered by other power suppliers in Illinois. When doing this, residents should be sure to check out and understand such details as the 1) rate, 2) is the rate as quoted a fixed rate or a variable rate; 3) what is the length of any contract; 4) are there any fees such as early termination, etc.

For what it might be worth, while the Village’s participating electric aggregation residents will likely transition back to ComEd for at least the next 12 months, the program saved Park Foresters more than $1,500,000 over the 2 years it was in place! Also, I am hopeful that the Village can go back to the energy market again next summer to assess the possibility of electric aggregation working again to the benefit of our community.


Sincerely,

Tom Mick
Village Manager
708-748-1112
tmick@vopf.com

Click to view the bid results!
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