Park Ridge’s membership in power coalition would have risks, rewards

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Updated: March 24, 2012 8:49AM

Moving to an alternative electricity provider could save Park Ridge residents and small businesses money, but how much their bills will actually decrease is dependent upon several factors.

During a public hearing held Feb. 20 to discuss the electrical-aggregation referendum Park Ridge voters will see on the March 20 election ballot, Park Ridge City Manager Jim Hock said the actual cost of electricity could drop 20 to 30 percent if the referendum is approved and the city contracts with an electric supplier other than Commonwealth Edison.

But that savings could be less if the City Council agrees to a renewable-energy option, Hock said. The greater the amount of renewable energy, the higher the cost, Hock’s presentation indicated.

Further influencing how much customers pay is ComEd. Even if the city purchases electricity through another company, ComEd will continue to deliver the electricity and maintain the infrastructure, Hock said. If ComEd raises infrastructure fees, that cost will be reflected on electric bills.

Hock expects rates for electricity under a different supplier to be much lower than Park Ridge customers now pay.

“We now pay 7.6 cents per kilowatt hour. The last public bid was 5.4 cents. And energy rates have even gone down further since that time,” he said.

In anticipation of the March 20 referendum the city of Park Ridge and seven other communities have joined the North Shore Electricity Aggregation Consortium. The consortium will consider bids from suppliers and recommend a single supplier for its members, Hock said.

By banding together, the municipalities expect to have “greater bargaining power” when it comes to obtaining electrical services, the city manager stated.

Timing will also reportedly influence cost savings.

“The greatest savings to our residents and businesses is how fast we can get them converted to this new electric provider,” Hock said.

If the referendum is approved and a new supplier is selected, residents and small businesses will receive a letter giving them an opportunity to remain a customer of ComEd. They will have 21 days to make the decision.

Customers will be automatically switched over to the new supplier if they do not choose the “opt out” option.

No matter what supplier the city uses, ComEd will still be responsible for repairs and addressing power outages, Hock said.

The March 20 referendum reads: “Shall the city of Park Ridge have the authority to arrange for the supply of electricity for its residential and small commercial retail customers who have not opted out of such program?”

A second, and final, public hearing on the referendum is scheduled for 6:45 p.m. March 7 at Park Ridge City Hall, 505 Butler Place.