- Energy Procurement
- Residential Electricity
- Contract Negotiation
- Energy Budget & Forecasting
- Risk Management
- Ancillary Services
- Market Monitoring
- Green Energy
- Electricity Aggregation
Energy savings that are better together
What is It?
Several states have enacted legislation which empowers municipalities with the authority to negotiate electricity rates on behalf of its residents and small businesses. Electricity aggregation uses the collective bargaining power of residents to negotiate lower electricity supply rates from retail electric suppliers. This creates purchasing power and economies of scale resulting in electric prices much lower than any individual customer could get on their own.
How Does It Work?
A community interested in electricity aggregation must first place a referendum on the ballot asking voters to give the community authority to run an aggregation program. Once the referendum passes, residents will have an opportunity to provide feedback. After the most competitive supplier is selected and a contract is signed, all eligible residents and small businesses are automatically enrolled in the aggregation program, unless they choose to opt out.
What Are the Benefits
Electricity aggregation programs increase supplier competition which results in reduced electric prices for residents and small businesses. Overall these programs significantly impact local economies because communities with lower electricity costs result in more disposable income for consumers.
Our sister company, Select Energy Partners, has years of experience in electric aggregation from successfully developing and implementing programs in multiple Illinois municipalities.
If your town is interested in electric aggregation, please contact Select Energy Partners or visit us on Facebook. We are eager to answer your questions and put your entire community on the way to energy savings.
Electricity aggregation – residential electricity savings
Situation: A group of Illinois communities heard about savings opportunities associated with Electricity Aggregation and wanted to explore what the cities could do for their respective citizens.
Next steps: Select Energy Partners, a Satori Energy company was retained to evaluate the opportunity on behalf of the municipality. Select Energy created a customer awareness strategy which focused on educating citizens about the advantages of Electricity Aggregation and engaged multiple mediums including radio, newspaper, customer forums, and direct contact. Select Energy gathered the data, created load profiles, obtained pricing from the supply community for evaluation, and through diligent analytics found the best offer for the group.
Result: Select Energy uncovered savings of 34% for small business consumers and uncovered savings of 23% for citizens versus the utility tariff rate. A 2-year contract was signed which resulted in over $7.1 Million in electricity cost savings for the group of Illinois communities.