Municipal Aggregation Program Update—ComEd Adjusts its Rate
In the name of transparency, the Village of Mundelein is informing residents that ComEd recently adjusted its rate downward to 7.29¢ per kWh due to a settlement negotiated by the Illinois Commerce Commission and PJM Interconnection. The new ComEd rate of 7.29¢ per kWh will be in place through May 2019, after which it is expected to increase and will change every six months thereafter. The Village’s negotiated rate through Constellation will remain at a fixed 7.499¢ per kWh until October 2020.
Residents have the option of returning to the lower ComEd rate at any time, with no early termination fee. To do so, call Constellation Energy at 844-252-3272. Be sure to have your ComEd account number available when you call.
When the Village last renewed its aggregation program in August of this year, ComEd had published its annual residential rate of 7.76¢ per kWh. The Village received numerous bids to renew its program and selected the lowest rate of 7.499¢ per kWh from Constellation NewEnergy, Inc.
For more information about this update, please refer to the frequently asked questions provided below:
Municipal Aggregation Program Update FAQ
Why did ComEd reset its rate?
ComEd is part of the PJM grid, a regional transmission organization that coordinates the movement of electricity in 13 states. PJM is regulated by the Federal Energy Regulatory Commission. PJM’s charges are included in the energy charge for all suppliers, including ComEd. The unexpected reprieve is due to a settlement negotiated by the Illinois Commerce Commission and regulators in other states that make up the 13-state regional power grid called the PJM Interconnection, of which northern Illinois is a part. The pact affected the allocation of costs of transporting power to population centers. Flat rates were charged across the grid. But it turns out East coast states are more expensive to serve. Thus, some areas including Northern Illinois were subsidizing Eastern states. FERC had PJM re-set its pricing, cutting the cost of transmission and reimbursing electric consumers for past overpayment in those areas.
Will the Village’s rate be adjusted downward?
No. The Village negotiates fixed rates for the duration of its contracts and asks its suppliers to bear the risk of regulatory changes during its contract. As such, the Village rate will not change.
Can residents leave the Municipal Aggregation Program and return to ComEd?
Residents have the option of returning to the lower ComEd rate at any time, with no early termination fee. To do so, they must call Constellation Energy at 844-252-3272. Residents must have their ComEd account number available when calling.
If a resident chooses to leave the Municipal Aggregation Program now, can they return to the program if the ComEd rate increases later on?
If a resident chooses to leave the program for the lower ComEd rate, they will be able to rejoin the program after 6 months, should they choose to do so. If they remain with ComEd until the end of the current aggregation program, they will automatically be included in any renewal program the Village may put in place.
