Is a long term ComEd contract the new municipal aggregation jail sentence?
In addition, the residents of North Aurora are in a similar predicament. They are switching back to ComEd on July 1st and have 60 days to opt out of a long-term ComEd contract.
So, what does that mean?
When the current municipal electric aggregation contract ended, the small communities searched for a new supplier who’d offer the lowest rates. Because ComEd’s high rates corrected this past June, the utility was able to offer a competitive municipal aggregation rate for the communities. Due to the rate and the length, Fox River Grove locked in a contract until September 2014.
So, they’re saving money for a longer period of time… What’s so bad?
As they often say, the devil is in the details. These contracts only offer residents a 2-month opt-out window before they are locked in with the giant utility for over a year. After that, the main issue comes after the 2-month opt out window is up. Once a resident signs on with ComEd, they are subject to any additional changes (read rate increases) ComEd might issue, for a multiple number of reasons over the length of the contract.
While the delivery and supply charges won’t vary all that much, the real kicker will come from the “Purchase Electricity Adjustment Charge”. This rate can rather quickly flip, causing a fixed rate plan into something very close to a variable rate plan.
So, what’s the takeaway?
The main point is that Fox River Grove and North Aurora are returning from a municipal aggregation deal to ComEd. As they return, there is only a 2-month window for residents to opt out of the new plan with ComEd. Once this new plan locks in, residents will be at ComEd’s mercy, and will not be able to choose their energy supplier until September of 2014. As energy enthusiasts and proponents for electrical competition, we wanted to share the word and encourage consumers to remain aware of their energy situation.