The city of Chicago has inked a new electricity contract with Integrys Energy Services that will save customers money on their electricity bills, Crain’s Chicago Business reports.
Under the deal, some 900,000 city customers will pay 5.42 cents per kWh starting in March, which is similar to what smaller suburb customers pay, the business publication reports. The new rate is 35 percent less expensive than Commonwealth Edison Co.’s current supply price: 8.31 cents per kWh.
The contract ends in May 2015, and while the price is only locked until May 2015, Crain’s Chicago Business says after that the city renegotiate a new deal with Integrys at the same profit margin.
The $300 million contract almost triples Integrys Energy Services’ business. Its parents company, Chicago-based Integrys Energy Group, also owns Chicago natural gas utility Peoples Gas, and has about 500,000 customers. This contract will add about 1 million customers.
According to the paper, Integrys and Chicago-based Exelon Corp., parent of Commonwealth Edison Co., were the city’s two finalists for the contract. It reports the offer from Exelon’s retail unit, Constellation, was more than 30 percent higher than Integrys’.
On Dec. 1, Constellation began providing electricity to Marriott in Arizona. Under the new contract, Marriott expects to save about 10 percent when compared to Arizona Public Service Company standard service rates.
A month earlier, the non-profit Texas aggregator Public Power Pool selected Constellation to supply its members with 2.7 million MWh of electricity, following a competitive bidding process.