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Council hears options for city electric aggregation as supply rate signals spike
Summary
At its April 15 meeting the Zion City Council heard from Illinois Aggregation Consultants on options for the city's community aggregation program after the Illinois Commerce Commission signaled supply rates could jump to about 9.35 cents per kilowatt-hour; no final vote was taken.
Sharon Dirling of Illinois Aggregation Consultants told the Zion City Council on April 15 that the city's community aggregation supply rate is likely to rise and presented three options for the council to consider: suspend the program, renew the current common-price program for one year, or renew for two years.
Dirling said the market for brokered electric supply in Illinois has thinned. "Beginning, everyone came to the party, so to speak, and I personally worked with 12 different suppliers that serve Illinois. Currently, only 2 bring bids and really only 1 shares anymore," she said, adding that the city's current program sets a single common supply rate for all participating residents.
The consultant told the council that preliminary signals from the Illinois Commerce Commission indicate the common supply rate could rise sharply in June. "It could go up as high as 9.35' for one year," Dirling said, characterizing the figure as an indicative number to be finalized next month.
Dirling recommended the council consider a one-year fixed-rate option at about 9.35 cents per kilowatt-hour if the council wishes to lock a price; she cautioned there is no guarantee of savings and said fixed-rate offers can be volatile. She also said only one competitive supplier appears likely to submit a firm bid in the current market.
City staff told the council they would communicate the preliminary information to residents if the council requested, and Clerk Spooner was asked to assist with resident outreach. Dirling said the program's design aims to avoid resident confusion by using a single common-rate structure and that no extra fees would be added to resident bills under the program as presented.
No formal action was taken on the aggregation program at the April 15 meeting. Dirling said she was available to return with final bid information and that the matter would likely be brought back to the council for a decision after the Illinois Commerce Commission issues a final supply-rate notice.
Why it matters: The city's community aggregation sets the common supply portion of residents' electric bills; a sharp rise in supply rates would affect all participants and may prompt the council to weigh price certainty against market savings potential.
