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Friday, May 25, 2012

City of Aurora Pushes Green Scheme and False Claims About Cutting 25 Percent From Monthly Electric Bills



On Thursday, during a "special" city council meeting that was "rushed" within hours to prevent anyone from having time to review bids, contracts and details, the City of Aurora proceeded with a green scheme to contract with First Energy Supplier to switch the city's businesses and residents.

It's important to understand First Energy doesn't actually create or distribute energy.  They simply buy the energy and resell it, but because ComEd is locked into contracts through next year and the market rates are lower, they are able to gain from the difference, charge slightly less and profit immensely.

City spokesgirl Carie Anne Ergo, who receives a salary and benefit package exceeding $160,000, said:

"Aurora customers are expected to save about 25 percent on their monthly electric bills..."

However, that is false.  The savings are limited to only a portion of the bill, the energy supply charge and that savings may vary based upon a couple pennies per kilowat hour of savings.

A representative of ComEd, who will still be delivering your energy with costs that are regulated and fixed by the state and still send your bill each month, confirmed "the city is not accurate when claiming customers will see a 25 percent reduction on their monthly bills."

In fact, if the city really were really serious about cutting costs for the people of Aurora, there is a simple test.

Did the city reduce or eliminate the city's portion of TAXES on the monthly electric bill?

Spokesgirl Ergo said "well, no...why would we do that?"

The city also made another false claim as part of an ongoing green scheme:

"The City (of Aurora) purchased 100 percent renewable energy."

First Energy confirms energy will still continue to come from the usual sources on the open market such as coal plants and nuclear.  Any renewable energy, which suppliers like Exelon (parent of ComEd), create from wind or solar, may be a small percentage, but the costs to produce that energy are typically higher.

We asked city spokesgirl Carie Anne Ergo for any proof to backup the claim residents will be getting 100 percent renewable energy.

Thus far, we have not received any response to that request...and will not be getting a response since no proof exists and the claim was false.

The contract approved on Thursday is reportedly for two years, which is significant because in approximately one year, the contracts ComEd are currently locked into will expire, so while an alternate supplier could save $10-20 from a monthly bill temporarily, that could change significantly next year.

Could you end up paying MORE than what ComEd will charge?  Yes.

The city's agreement forces you to switch your electric supplier unless you opt-out.  You will have two opportunities to opt-out...first when the City and First Energy send you a notice, then when ComEd sends you a notice.

Either way, you will continue to get a bill from ComEd and your energy will NOT be "100 percent renewable."

And, either way, you will see a ZERO percent reduction from the city on the taxes it charges you.

3 comments:

Anonymous said...

I am definitely going to opt-out of this. The city is just spinning this and not being truthful.

Anonymous said...

City is exaggerating the savings and not disclosing the risks down the road all so the mayor look "green" to eveyone. It's ridiculous to claim 100 percent renewable energy yet that is exactly what they did, hoping most people are dumb enough to believe it.

Cut my taxes 25 or 100 percent on my electric bill. Then we will know if the mayor gives a damn about cutting our monthly electric bills.

Anonymous said...

2:40, Go ahead and opt out. You will just pay more with ComEd. Why do you think that towns all over the state are going through this very same process?