The City of Oak Forest has selected a new energy supplier that officials said will save 43 percent off of ComEd's power rate.
FirstEnergy Solutions was chosen from six companies that submitted bids after the City Council voted to seek a new supplier on May 8. One bid actually came in as the lowest, but couldn't promise a stipulation that it would guarantee a match ComEd's rates.
The two-year contract will with FirstEnergy includes the cost to buy energy entirely from green sources.
This added cost to secure renewable energy adds an extra 0.08 cent per kilowatt-hour, bringing the contract rate to 4.82 cents per kilowatt-hour. City officials said this is 43 percent less than rate just established by ComEd from their energy suppliers of 8.5 cents per kilowatt-hour.
On Tuesday, City Administrator Troy Ishler said the contract was a "win-win" for the city.
"It's not often we get to go back to our residents and tell them we saved a ton of money on something," Ishler said.
Residents who wish to opt out of the contract with the new dealer can do so. A letter from the city will be mailed out in early June explaining how. Oak Forest residents will have two chances to stick with the current ComEd supplier.
FirstEnergy is a subsidiary of FirstEnergy Corp, which is in Akron, OH, according to the city. It currently serves more than 1.5 million residential accounts in Illinois, Ohio, New Jersey and Pennsylvania.
Oak Forest voters approved an electrical aggregation referendum on March 20, with authorized the city to search for a new, cheaper energy supplier. A state law that took effect in 2010 allows cities and towns to aggregate the buying power of its residents and find alternatives to ComEd's energy supplier.
Residents can still expect to see bills with the ComEd name and will still call the company for service issues. ComEd maintains the services lines for a supplier.
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