IL Municipal Aggregator May Return to ComEd

The Chicago Tribune reports that eight municipalities which have participated in a municipal aggregation program in Illinois are considering returning to Commonwealth Edison.

The North Shore Electricity Aggregation Consortium signed a three-year supply contract with MC Squared Energy Services that expires at the end of May. Over the past three years, residents and small businesses participating have saved a combined $36.5 million by purchasing from retail suppliers. However, when the association sought bids from suppliers in November, the bids could not compete with ComEd’s default service rate.

It is not uncommon to see municipal aggregators switch between competitive and default suppliers to ensure attractive rates for participants – though ComEd’s service territory has high levels of retail energy penetration.

At the end of 2013, retail suppliers provided 85 percent of non-residential load and 69 percent of residential load, according to migration data from the Illinois Commerce Commission.

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