Lower Electric Rates For Morton Grove, Niles

Morton Grove residents may find it's more affordable to beat the heat this summer, because the village just announced it signed a contract Wednesday for a low electricity rate.

And while Morton Grove residents don't need to do anything, Niles gave residents an option to sign up for a lower electric rates in December, by a company which offered lower rates than ComEd's and guaranteed its rates would never be higher. 

Morton Grove plan will save $350 average

The Morton Grove plan will save the average household $350 in electricity costs annually, according to the village administrator.

On Wednesday, Morton Grove signed an agreement with First Energy Solutions Corp. to provide electricity at 4.42 cents per kilowatt hour. If during the term of the contract, the ComEd electricity rate (which is 8.5 cents/KWH as of June 1, 2012) falls below 4.42 cents per kilowatt hour, First Energy will match the ComEd price or switch customers to ComEd at no charge. 

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“We are very pleased with the bid,” said Village Administrator Ryan Horne, in a statement.  

Morton Grove residents don't need to take any action to sign up. Because of the referendum passed in March, all residents and small businesses will be switched over to the new supplier, unless they opt out or have already signed up with an alternative energy supplier.

Earlier: 

“If you have switched to an alternate supplier, you may still join the Village of Morton Grove’s electric aggregation program, but you must contact First Energy Solutions at (866) 636-3749 to enroll.  There is no fee to join, but your current supplier (other than ComEd) may charge an early termination fee,” explained Horne in a statement.

Electric bills contain a charge for supplying electricity and one for delivering electricity. Morton Grove residents will see the supply cost decrease by 48 percent; however, because ComEd will continue to deliver electricity, that charge will not go down. 

Niles had a voluntary plan

Niles did not put an electricity aggregation referendum, which would consolidate the village's buying power to get lower electric rates for households,  on the ballot in March, nor does it plan one for the November election. 

It did offer residents a chance to sign up in December for an alternative energy provider. The village put the offer on its website. 

"We were pleased that this option offered lower rates within about one to two months of signing up and guaranteed that their rate would never be higher than Com Ed's," said Niles Trustee Rosemary Palicki, who chairs the Environmental Relations Committee.

Those who signed up received four compact fluorescent bulbs, giving them the chance to save even more money, she said. 

"My understanding is that Com Ed will be renegotiating their rate in June of 2013.  At that time, their rate could be significantly lower than today's rates due to competition," she observed.

For that reason, Niles is expiring its program in June 2013, and will reassess the price situation then.