By Jim Hagerty
The search for a new company to provide electricity to Rockford residents has begun, city officials announced Thursday, March 20.
Rockford is now in a two-year contract with Akron, Ohio-based FirstEnergy Solution, which charges the city 4.66 cents per kilowatt hour. That was almost 73 percent more than what ComEd was charging residents in 2012 when Rockford aggregated its electricity.
In the first year, the deal resulted in savings of more than $8 million — about $205 per resident and small business.
The contract with FirstEngery expires in September.
Also part of the contract, the city collects an administrative/broker fee to provide deregulated power to residents through FirstEnergy. At the Monday, March 17, meeting of the Rockford City Council, aldermen agreed to waive the fee in a contract with a new electric provider.
As of this report, only about 650 households opted out of the city aggregation program and continued to purchase regulated power through ComEd. That means approximately 51,000 Rockford residents enrolled.
Residents were notified of the contract with FirstEnergy Solutions by mail. Each household was given an opportunity to opt out of the program by notifying the company in writing. Those who did not opt out via mail were automatically enrolled.
Rockford’s new supplier is expected to be a company that generates a portion of their power from wind or other clean sources.
Leaders are expected to begin accepting bids in April.
Posted March 20, 2014