Aurora wants electricity question on March ballot

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Updated: January 13, 2012 8:10AM

AURORA — The city plans to ask voters next spring for permission to hunt for cheaper electricity.

City staff is suggesting an ordinance that would allow voters to decide if Aurora should establish an electricity aggregation program for the city’s residential and small commercial retail customers. The goal of the program is to allow local governments to offer residents a cheaper energy supply.

If the City Council approves the ordinance Tuesday, the referendum question would be placed on the March ballot.

In January 2010, Illinois completed the process of deregulating the power industry in the state, allowing for municipalities to shop for their residents and small commercial businesses in the aggregate. Currently, ComEd provides electricity to Aurora households. The deregulation opened the door for competition between providers.

If voters approve the electricity change, Aurora will be able to shop from 35 companies that provide electricity in Illinois. Because the large scale purchase of electricity in bulk is a competitive process, it’s likely residents will save money, city staff said. City Finance Director Brian Caputo has estimated residents could save as much as 25 percent.

Individual households maintain the right to opt out, meaning they would continue to purchase electricity from ComEd or another supplier they choose.

Caputo said two notices to opt out are sent to homes before a switch is made.

“Generally speaking, there’s not going to be a high number opting out,” he said.

Caputo said it would take nine months to institute the program if the referendum is approved. The city also plans to hire a consultant in order to establish the program and analyze electricity supply bids.

Mayor Tom Weisner said the electricity aggregation program was turned down by only a few of the 15 to 20 communities that held referendums earlier this year.

North Aurora, Sugar Grove, Elburn and Campton Hills all adopted electricity aggregation programs in April.