UPDATE 2/28/12: Here's a link to the Citizen Utility Board's take on electric choice.CUB
PEORIA -- Environmental activists urged the audience to vote 'yes' on the upcoming electric choice referendums, at a Jan. 21 forum sponsored by the Greater Peoria League of Women Voters.
Though the dollar savings may be small -- $10 a month is typical in other Illinois communities, -- the payoff is funneling money into sustainable power generation using wind and solar, which needs more research into storage of the power these options can generate.
The referendum will be on the March 20 primary ballot in many central Illinois communities.
It will ask for voter approval to allow a governmental body to bid out residential electrical service to an alternative supplier. But any resident can ‘opt-out -- that is, choose not to participate.
Many of the governmental bodies, including Peoria, will be relying on a consultant, Good Energy, to educate the public on the issues and negotiate a contract with a supplier if the referendum passes, said Chris Setti, who is managing the project for the city of Peoria. "If we don't like the deal...we (the city) can opt out," he said.
As for the public, experiences elsewhere show that less than 10 percent of the residential users will opt out, he said.
Good Energy gets a commission from the supplier, he said, and may be required to disclose its compensation.
After the rules are developed for the process, there will be public hearings and the Illinois Commerce Commission also must approve the rules, he said. The bidding process then will take place, an open process.
After a supplier is chosen, rate payers will be given the option to opt out. Peoria with 39,000 households likely will be part of a larger group of 200,000 households, the Central and Southern Illinois Buying Group, but could also negotiate on its own, he said.
So -- the referendum will give legal authority to the local government to negotiate, but "you're not locked into it," he said.
Tracy Fox and Kiersten Sheets of the Global Warming Solutions Group, presented the environmental arguments for the referendum's passage. "We believe it's a bold policy to make green energy accessible and affordable," Fox said.
She called for more transparency in the 'governance issues,' e.g. the bidding rules, but said, "energy aggregation and block purchasing is the way to participate in the green energy economy." Individuals can't do that for themselves. "This is the most realistic way to participate," she said.
The bids need to involve green energy, perhaps produced in Illinois, and also could provide discounts to the elderly, she said. The bidding rules need to be carefully drawn, otherwise Good Energy will control the process.
"We want to see the largest possible green energy buy, Oak Park has 100 percent green power," Fox said, and pays 5.8 cents per killowatt hour. Peoria, using Ameren/Cilco pays 6.2 cents. That's not much savings, but Oak Park is not using coal and nuclear, she said.
Sheets said the renewable energy purchase increases the supply and demand chain, and therefore renewable sources will respond. "So we get a cleaner environment." The increased cost of green energy can be offset by bulk purchasing.
Illinois hopes to get 20 percent of its energy from renewables by 2025, she said. "I would like us to do that as well."
The impact on Ameren/Cilco was discussed, with Setti saying it should not be impacted. Ameren is two companies, one producing power, the other delivering power and handling billing. That will continue, he said, and bills will be paid to Ameren even though the power itself comes from elsewhere.
Energy, namely the electrons flowing over the wires, is a commodity now, like grain and oil. Local power plants will still be selling power to the lines, Fox said. Ameren also could bid to be the supplier.
Local Ameren power plants will not be in jeopardy, because they will still be selling power, she said.
But Peoria County Board member Brad Harding expressed concern about the Ameren Edwards power plant which is upgrading its pollution control equipment. The power plant pays taxes and employs local people, he said.
He also expressed concern about Good Energy, saying "we have not been able to get Good Energy to give us information" on its compensation. "Transparency is important."
He expressed concern that "another layer of government" is being created.The county will have to add a staff person to handle this, he said.
"We don't have enough answers on whether this is saving money, and (whether) this money stays local," he said.
Setti said the city should not have additional costs from the procedure, and might realize some revenue from it, as other cities have done.
An audience member who said he was a Kewanee official said "we kept Ameren and got a better rate. To pass (the referendum) would be a smart thing to do. You're not stuck with it once you pass it."
An audience member from Peoria Heights said deregulation in Illinois has caused "a mess." The burden of finding cheaper, greener sources of energy should be on Ameren, not individuals, he said, to applause.
He was in a pilot program that saved about $30 a year but suddenly vanished, he said. "We had no idea," what was happening, and noticed "fees," he said. "How are you going to figure it out" whether to opt out, he asked. "Who will help us decide whether participating in this coop is beneficial?"
Setti said individual households now have two options, Ameren or to negotiate with a supplier on their own. "This (referendum) gives a third option." There will be information on savings as the process takes place, he said. "There will be ways to figure it out."
Fox questioned why the Citizens Utility Board did not send a representative to the forum, though it was invited to do so. "They don't seem to care about rates at Ameren. Call them," and complain, she said.
Terry Kohlbuss of the TriCounty Regional Planning Commission said 20 communities have passsed the referendum already and signed contracts. The average savings is $10 a month, and municipalities get $10 per household per year, "as new streams of revenue."
Fox said she has searched the Web but not found any horror stories there. "There are plenty of safety nets."
-- Elaine Hopkins