Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Aggregation topic
No spam. Unsubscribe anytime.
Council told lower supplier bids exist but savings are modest as ComEd rates climb
Summary
City staff presented three supplier bids for municipal aggregation, showing one-year bids near 9.65¢/kWh versus ComEd's 12-month average supply rate of about 10.229¢/kWh; council scheduled the item for a vote the following week.
Mike Mudge, who presented the municipal aggregation options to the council, said the city received multiple bids and that one supplier, MC Squared, offered a 1-year rate of 9.65¢ per kilowatt-hour and a 2-year rate of 9.85¢ per kilowatt-hour. "The lowest price on here is from MC Squared, which 1 year is 9.65 kilowatt per kilowatt hour, and 2 years is 9.85 per kilowatt hour," Mudge said during the discussion.
Mudge told the council the all-in ComEd supply rate averaged about 10.229¢/kWh at the time of the presentation and noted that recent capacity costs and hotter weather pushed retail bills higher this summer. He said the typical residential customer (using about 634 kWh per month) would save roughly half a cent per kilowatt-hour under the MC Squared one-year price — approximately $3.17 a month for a 634 kWh household, based on the presenter’s calculations.
Mudge reviewed market context: changes in PJM capacity auctions and supply constraints, higher demand from electric vehicle adoption and data centers, and retirement of some traditional generation. He also explained that aggregation is voluntary for residents: the city would roll out a community rate and customers can opt out without termination charges.
During public comment, resident Ryan Glick described a personal billing dispute attributed to supplier switching and asked the council to be aware of consumer impacts. "That was a horrible six months I had to deal with with my ComEd bill being switched, and it took almost six months to be back where I wanted. And I'm on low income," Glick said.
Alderman Johnson asked about renewable or "green" product options from suppliers (Dynag/Direct Energy) and why those bids are higher. Mudge answered that renewable-sourced energy usually carries higher upfront costs and that the city can offer an opt-in green choice for customers who prefer it; he said MC Squared did not offer a green option in the presented bids.
City Manager Boyer noted staff is scheduled to bring a proposed aggregation contract to the council at the next meeting for formal action. No formal contract was approved at this meeting; council members asked questions and indicated they expected updated, fresher bids when the item returns for a vote.
