Talking Points – The Real Truth About Municipal Aggregation: What the Brokers Do Not Want You to Know.

• AGGREGATION IS NOT A GUARANTEE FOR THE BEST RATE: Just because residents are in an aggregated community, this does not mean they are receiving the best rate. Rates vary from town to town, and supplier to supplier. Add: ‘Within a short period of time many towns in Illinois now have rates higher than those offered by the utility, or by other 3rd party suppliers. The residents of Illinois towns like: Crest Hill, Fulton, Fox River Grove, Glenwood, North Aurora, Oak Park, Riddott, Sugar Grove, West Brooklyn, Wood Dale, and numerous others are now (already) paying higher rates than they would have if they had stayed with the utility. Link to article from Crains

• AGGREGATION ELIMINATES CHOICE: Municipal aggregation is a throwback to the “old way” when consumers did not have a choice. It defeats the purpose of electricity deregulation. Deregulation fuels price competition, and innovation. Many aggregators are utility-owned and represent an effort to re-monopolize the market. The bottom line is that when companies compete for your business, YOU (the consumer) win!

• LOCKED INTO LONG TERM CONTRACTS: Many of the aggregated municipalities are committing to contracts that remain in effect for several years. Those residents are locked into a long-term agreement, which often include increases after the first year of the contract and built in penalties for switching out early to their provider of choice. Politicians’ involvement in hedging a volatile commodity represents a significant risk to their constituents’ — YOU!
Commodity trading is a highly technical and speculative industry, and NOT suitable for town managers and local politicians.

• AGGREGATION DOES NOT SUPPORT ECONOMIC GROWTH IN LOCAL COMMUNITIES: Aggregation stifles local small businesses that help stimulate the local economy. Aggregation decimates local investment in new renewable projects and destroys American job creation. (Crains article regarding such)

• OPT-OUT IS NO CHOICE: Residents in aggregated communities default to a company they did not choose. If they did not actively choose to opt out, then they did not choose a plan or a supplier that met their particular situation. 95% of residents in government aggregated communities will end up with a company they have not chosen. Opt-out programs were recently enacted to override the opt-in program of 1999. 5 Things You Should Know About Aggregation, Negative, non-education based ‘LEGALIZED SLAMMING’

• BIG BROTHER IS WATCHING: In aggregated communities the consumer’s personal energy usage will now be accessible by government agencies. Through smart meters and aggregation, they are now able to track energy usage, both on an individual and municipal level thereby monitoring what you’re doing, making inroads into your daily life and setting the stage for further government intervention.

• SHOULD (LOCAL) GOVERNMENT BE ABLE TO ENTER THE MARKETPLACE IN A DEREGULATED STATE? – While our government is one of the best in the world, let us not forget that our individual voices made us what we are. We are still fighting all over the world for personal freedom, and the right to choose. Let us not be too eager to give up our choice and hand over more control to our (local) governments. Energy independence in America is being fueled by deregulation. Should local governments be involved in manipulating the FREE MARKET? Anytime BIG GOVERNMENT begins making choices unintended consequences arise. Government should be the referee not the player.

A recent article in Crains Chicago Business (“Some Suburban Electricity Deals To Be Costlier Than ComEd” – April, 3, 2013) stated: “Municipal politicians who have moved to buy cheap power on behalf of their households… are about to find out there are risks too…” Already, the residents of 15+ towns in IL are paying MORE for their electricity than they would be through other 3rd Party Suppliers, or even by staying with the utility. “Do you want to be the politician staring in the face of thousands of constituents now paying more for their power?”

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7 thoughts on “Talking Points – The Real Truth About Municipal Aggregation: What the Brokers Do Not Want You to Know.

  • Bob; Millstone, NJ

    Town politicians mean well but they’re being misled by the aggregators. When you look at the whole story it’s pretty easy to see that this is “Big-Energy’s” attempt to re-monopolize the energy markets. I love the supplier I’ve chosen; don’t take other people’s right to choose!

    Reply
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  • Jennifer Schulhoff

    Hello, I stumbled upon your website while researching electricity pricing and aggregation in the suburbs. I have read through the information and do find it interesting. I believe the goal of the aggregation program was to offset the high prices that ComEd was locked into for a few years.

    Now that those prices are normalizing, it looks like the aggregation rush is dying down.

    Still, I think that it has been overall a good thing and no cause to panic. We still have more choices, not less. Letting your municipality negotiate gives them more power to lower the price. Since anyone can opt out, there really is no harm. The aggregate price is really just an additional choice. As far as I know the municipalities notify their residents of this and give them the information they need to opt out.

    I do have one question: do you release info on where your funding comes from? I see the donation info, but the content leads me to believe that there is more going on here than simple concerned citizens.

    thanks for your time

    Reply

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