FAQs
Q: What is deregulation?
A: On December 16, 1997, the State of Illinois implemented a plan to deregulate Commonwealth Edison ("ComEd"). Under this plan, ComEd no longer generates electricity for its customers but continues to provide power generated by others through its distribution system. Deregulation means that power can be purchased through any of the 23 Illinois Commerce Commission approved power suppliers.
Q: What is Electric Aggregation?
A: Electric Aggregation is a program that allows local governments to bundle - or aggregate - residential and small commercial retail electric accounts and seek bids for a cheaper source of power. Currently, ComEd customers receive electricity at a price set each year by the Illinois Power Agency, a governmental body that secures electricity on the wholesale market on behalf of ComEd. By bundling residential and small commercial accounts, municipalities can go out into the open market to seek a lower rate for electric power. Since 1999, large industrial and commercial customers have used this option to reduce electricity costs.
Q: What are the benefits of aggregation?
A: The most important benefit is the opportunity for residents and small businesses to save money on electric supply costs. A small commercial account is defined by the ICC as a commercial account using under 15,000 kWh per year.
Q: What is an eligible resident or small commercial account?
A. Any resident who is currently with ComEd and has not already switched to an Alternate Retail Electric Supplier (ARES) or who is not enrolled in a special Residential Real-Time Pricing (RRTP) program is eligible, and small commercial accounts are eligible.
Q: How can I enroll in the program?
A: You need not do anything if you are an eligible resident or small commercial electric account; you will automatically be enrolled unless you opt out. You will receive a letter with our Township logo on it stating who is the aggregation group supplier as well as the rate and term the group selected. If you choose to participate you will also receive an enrollment letter from ComEd explaining your switch and your rights to cancel if you feel you have been erroneously enrolled.
Q: Can I leave the program at a later date?
A: Yes, you may opt out at no cost.
Q: Am I obligated to participate?
A: No. Any account holder may opt-out of the program and remain on ComEd’s supply service rate.
Q: How do I opt-out of the program?
A: Eligible resident and small commercial accounts will receive a letter with the Township name and logo on it. The letter will explain the process for opting out. A phone number will also be provided for you to call with any questions. You will have 21 days from the post mark date to opt-out. Otherwise, you will be enrolled with chosen supplier. You will still have the ability to terminate your enrollment with the chosen supplier by contacting them directly. There is no termination fee.
Q: Can I opt-out over the phone?
A: No. If you want to opt out, you must mail in your completed opt out form and it must be postmarked by the due date.
Q: If I opt out now, can I change my mind later?
A: Yes, you may opt out now and join the program later, at no fee. Simply contact the chosen supplier and ask to be enrolled in the aggregation program with the Palos Township
Q: If I automatically enroll in the program now, can I leave the program at any time?
A: Yes, you can leave the program and move your account back to ComEd or another ARES. There is no early termination fee to leave the program.
Q: What is ComEd’s 12-month “stay” requirement?
A: Please note ComEd has rules that prohibit customers from switching accounts frequently. If your account was with an ARES and you moved back to ComEd more than two months ago, you are under a 12-month “stay” and may not switch to a new supplier for that time.
If you are automatically enrolled in the Townships aggregation program, and later switch back to ComEd, you must switch to a new supplier within two months or you will be subject to that 12-month stay.
Q: I have already switched to another ARES, but would like to join the program. Can I do this?
A: Yes. Contact the chosen supplier for information about how to enroll. We strongly suggest you contact your current supplier or check your contract to review any early termination fees you may be liable for. You may wish to wait for your current contract to expire before enrolling in the aggregation program. You may join the program at any time during the contract period for no fee.
Q: Who will take care of my power if there is an outage?
A: ComEd, by law, will still be paid to distribute the power to the homes and businesses and handle any emergency repairs.
Q: What is ComEd's role in this program?
A: ComEd distributes electricity, but does not generate it. As the local electricity distributor, ComEd is responsible for infrastructure, like power lines that bring electricity into homes and businesses, responding to outages and billing. ComEd will continue to bill customers for electric usage regardless of the supplier of that electricity.
Q: If I participate, will I get two bills - one from ComEd for delivering the power and another from a company that provides it?
A: No. ComEd will remain responsible for billing customers for all electricity, regardless of the electric supplier. The only change would be the name of the electricity provider on the bill's electricity supply.
Q: If aggregation means lower energy costs for customers, won’t ComEd simply increase charges on the distribution side to protect its profit margin?
A: ComEd owns the distribution system only, and so does not realize profits or losses from the sale of energy. ComEd has worked for several years with large commercial and industrial customers who have switched to third-party energy suppliers, and remains supportive of other customers who switch to third- party suppliers. In other words, there will be no impact on distribution rates. Per ICC regulations, ComEd cannot introduce any separate distribution fees on cities that aggregate.
Q: Will someone come to my home or call to sign me up?
A: No. You need do nothing to automatically be enrolled in the program. If someone calls or visits your home claiming to be the Townships power supplier, please report such activity to the Township Hall or file a complaint with the ICC at http://www.icc.illinois/gov/consumer/complaint.
Q: Will ComEd raise its rates?
A: ComEd must request a rate hike from State of Illinois regulators. No matter whom you select as supplier, it won’t affect whether or not ComEd increases its delivery rates.
Q: What happens if I move?
A: If you stay within the Townships limits, you can remain in the aggregation program. If you move outside of the area, you will not be subject to an early termination fee. Check your new community to find out if they have a municipal electric aggregation program for which you can sign up. New residents moving into the community after the program begins will not be automatically enrolled in the program, but may contact the chosen supplier to enroll, at no fee.