December 8, 2012

Mayor Emanuel Announces Integrys Energy Services as Winner of Municipal Aggregation Contract

Agreement Will Deliver Savings and Cleaner Energy for Chicagoans; Finance Committee Will Review Next Week; Agreement Eliminates Coal from Fuel Mix

Mayor's Press Office    312.744.3334

Mayor Emanuel announced that the City has selected Integrys Energy Services from among eight interested companies to serve as Chicago’s electricity supplier following an open and competitive two-stage bidding process.  After undergoing a thorough review of its financial strength, customer service ratings, and ability to deliver cleaner energy, Integrys Energy Services was selected because it offered the lowest price margin. Based on the submitted price margins and current market conditions, the City projects that Chicagoans will save 20 to 25 percent a month on their first electricity bills from February to June, representing about $25 in monthly savings for the average household. Over the life of an agreement that ends in May 2015, Chicagoans will save 8 to 12 percent on their bills, resulting in a total savings of $130 to $150 for the average household for the entire agreement. In addition to delivering meaningful savings to Chicago residents and small businesses, the City’s agreement with Integrys Energy Services will set new standards nationally by eliminating coal from its fuel mix.

"By buying electricity in bulk, we have secured an agreement that will put money back into the pockets of Chicago families and small businesses while ensuring that our electricity comes from cleaner sources,” said Mayor Emanuel. “I look forward to working with the City Council to approve and implement the agreement on an expedited timeframe so we can start delivering savings.”

“I am grateful that the City has identified a supplier which will enable Chicago residents and small businesses to save money on their electricity bills,” said Alderman Edward M. Burke. “During these tough economic times, it is paramount that city leaders do everything possible to achieve savings for consumers.”

Aldermen Burke and Alderman Patrick O’Connor were co-sponsors of a referendum which permitted voters to express their approval of municipal aggregation.

“I’m pleased that the City has completed its RFP process and selected a vendor for municipal aggregation of electricity,” said Ald. Patrick O’Connor. “This is a great program that will help residents save money on electricity and I am proud to have been a part of bringing this to fruition.”

Chicago’s municipal aggregation supply agreement is the largest in the nation.  The City is working on an expedited timeframe to ensure Chicago residents and small businesses can transition to the program as soon as possible.  Chicago customers will begin seeing savings on their electricity bills in March 2013.

"We’re pleased the City has chosen Integrys Energy Services as the exclusive electricity aggregation supplier for Chicago." said Dan Verbanac, President, Integrys Energy Services.  "We look forward to bringing significant savings to our new customers as quickly as possible"

The transition to Integrys Energy Services will be seamless.  ComEd will still be responsible for delivering electricity, reading meters, and responding to outages.  ComEd will also continue sending monthly bills and receiving payments, and customers will be able to keep the same budget billing and automatic payment options they have now.

The City used its bulk buying power to secure a cleaner power mix and create incentives for additional energy efficiency and local renewable energy programs. 

The agreement with Integrys Energy Services includes:

  • A complete elimination of coal from the City’s portfolio.
  • A full account of all of the sources of fuel used to power the City, providing residents with an unparalleled level of transparency about the sources of their energy.
  • Positioning energy efficiency and renewable generation as an alternative resource in the supply portfolio to provide sustained local investments that will result in additional savings.

In addition to providing Chicago residents and small businesses with cheaper and cleaner energy, the City’s agreement will include a number of key customer service features, including:

  • A 24/7 call center with specialists who can speak multiple languages.
  • Customers will be able to exit the program at any time at no cost.
  • All Chicagoans will be eligible for the same low rate, regardless of credit history.
  • Integrys Energy Services will be required to always beat or match the ComEd price.

The program will be operated on an opt-out basis, meaning that Chicago residential and small commercial customers will be automatically transitioned into the program unless they opt-out.  Residents and small businesses will have three ways to opt-out of the agreement, via phone, mail, and the web.  The City will send an opt-out letter to each eligible customer, and recipients will have 14 days to opt out of the program.  Additionally, residents can opt-out of the program at any time without charge, fee or penalty.

The City selected Integrys Energy Services to be its electricity supplier after an open and competitive, two-stage process.  During the first phase, Integrys Energy Services was one of eight companies to respond to a Request for Qualifications, which required companies to establish that they could meet a number of customer service, account management, clean energy, and corporate health requirements.  During the second stage, which ended on Friday afternoon, the City selected Integrys Energy Services on the basis of lowest price margin.


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