Village of La Grange Municipal Aggregation Hearing January 28, 2013 and February 11, 2013 What is Electricity Aggregation?

Village of La Grange Municipal Aggregation Hearing This is one of a series of presentations developed to provide La Grange residents with accurate information concerning Electricity Aggregation. More information regarding the La Grange Electricity Aggregation program can be found at: Village of La Grange Municipal Aggregation Hearing2

Village of La Grange Municipal Aggregation Hearing Referendum question approved by voters on November 6, 2012 Village Board approved an ordinance authorizing an opt-out program in November, 2012

How do you buy electricity now? Village of La Grange Municipal Aggregation Hearing4 Power Plants ComEd You Electricity Purchasing Pathways Supplier A Supplier C Supplier D Supplier B Alternative Retail Electric Suppliers Power Supply Contract Illinois Power Agency (IPA) Do Nothing Illinois Power Agency secures your electricity ComEd receives electricity from the grid ComEd delivers electricity to your meter Shop Around Alternative Retail Electricity Suppliers (ARES) secure electricity You negotiate a price with an ARES ComEd receives electricity from the grid ComEd delivers electricity to your meter

What is Electricity Aggregation? Purchasing authority for local governments Statutory authority granted in 2009 (PA ) The option for the Village to negotiate lower electricity prices on behalf of residential and small commercial consumers Used in other large states California, Massachusetts, New Jersey, Ohio, and Rhode Island Successful in 200+ ComEd communities Chicago, Oak Park, Evanston, Franklin Park… A simple way to lower electricity prices Village of La Grange Municipal Aggregation Hearing5

Aggregation is like buying from an ARES Aggregation ARES secure electricity from power plants City negotiates a rate for all residential and small commercial ratepayers ComEd delivers your electricity and handles the billing Village of La Grange Municipal Aggregation Hearing6 Power Plants ComEd All of Us With Electric Aggregation One / Several Alternative Retail Electric Suppliers Village’s Aggregation Contract Supplier A Supplier B Supplier C Supplier D

What Changes with Aggregation? Village of La Grange Municipal Aggregation Hearing7 Planning Illinois Power Agency Plans electricity purchases Manages bidding process Delivery ComEd Delivers electricity Issues monthly bills Maintains lines and meters Consumers Receives electricity Pays the monthly ComEd bill Before Aggregation After Aggregation Planning Village of La Grange by contract Plans electricity purchases Manages bidding process Delivery ComEd Delivers electricity Issues monthly bills Maintains lines and meters Consumers Receives electricity Pays the monthly ComEd bill Same New

What will change on your ComEd Bill? Current ComEd Electricity Supply Charges 1. Electricity Supply Charges 2. Transmission Services Charge 3. Purchased Electricity Charge Village of La Grange Municipal Aggregation Hearing8

What will change on your ComEd Bill? Opt-In Customers Electricity Supply Charges 1. Single (lower) Electricity Supply Charge Village of La Grange Municipal Aggregation Hearing9

Timeline for Electricity Aggregation Village of La Grange Municipal Aggregation Hearing10 November 6, 2012 Referendum Must be passed by majority of voters January - February Supplier Selected Program Prices Established through Competitive Bidding Process February- March Opt-Out Process Residents can Opt-Out of the Program at no cost March Account Enrollment All but the Opt-Out Accounts enrolled into the Program March - April Electricity Delivery Lower costs appear on regular monthly ComEd bills

La Grange Municipal Aggregation Plan of Governance Establishes Roles The Village The Supplier Consultant Establishes Policies Supply types Consumer Protections Management and Processes Status Draft is available for public comment Village of La Grange Municipal Aggregation Hearing11

La Grange Municipal Aggregation Plan of Governance The Village’s Role Coordinate planning, vendor selection, executing a final agreement and monitoring supplier performance The Suppliers’ Role Deliver electricity supplies and meet customer service standards The Consultant’s Role Advise Village on pricing, selection and program design Village of La Grange Municipal Aggregation Hearing12

La Grange Municipal Aggregation Plan of Governance Supply Types Residents will be provided at least the levels of renewable energy resources that ComEd provides Consumer Protections Consumers will not pay more than the ComEd rate Consumers can opt out of the program at any time Management Processes Consumers will be automatically enrolled unless they opt-out of the Program Various components such as fees, power supply mix, term of agreement will be determined by the Village Village of La Grange Municipal Aggregation Hearing13

La Grange Municipal Aggregation Plan of Governance Confidentiality All consumer information is protected Communications The supplier will be have a call-center and website Percentage of Income Payment Program PIPP participants will not lose their eligibility Billing Consumers will continue to receive one monthly ComEd bill Consumers will continue to have budget billing and automatic payment options Village of La Grange Municipal Aggregation Hearing14

La Grange Municipal Aggregation Plan of Governance Public hearings are being held to provide consumers a chance to learn about the aggregation option before the referendum Draft Plan is available for public comment at the hearings, e mail or phone at (708) List of Frequently Asked Questions provided in handouts Plan of Governance must be passed before a contract with a supplier is executed Village of La Grange Municipal Aggregation Hearing15

For more information on La Grange’s Municipal Aggregation Program Village of La Grange Municipal Aggregation Hearing16