CHICAGO — Mayor Rahm Emanuel selected Integrys Energy Services to be the lone supplier for electricity for the city Friday, promising savings for residents, according to a press release from the Mayor's office.
The city chose Integrys, a subsidiary of Chicago-based energy company Integrys Energy Group, among eight other bidders to serve as Chicago's electricity supplier.
The decision comes after a referendum on November's ballot passed, giving the city the power to bundle all residential and small business electricity customers and negotiate a cheaper rate. It's called municipal electricity aggregation, and Chicago is the biggest municipality in the nation to try it.
Emanuel said Integrys was chosen because it offered the lowest price bargain. The city projects the deal will save the average Chicagoans as much as $25 a month on electrictity bills. The agreement lasts through May 2015 and is expected to save the average household $130 to $150, according to the release.
"By buying electricity in bulk, we have secured an agreement that will put money back into the pockets of Chicago families and small businesses while ensuring that our electricity comes from cleaner sources,” Emanuel said in the release.
The city said residents can expect to see savings beginning in March 2013. Chicagoans will be automatically transitioned to the program but can opt out for free. Residents should receive an opt-out letter and will have 14 days to chose. City officials said residents can opt out via phone, mail or over the internet.
According to the agreement, Integrys has agreed to completely eliminate energy coming from coal.
The switch means ComEd will no longer provide electricity for city residents, but the company will still deliver electricity and fix outages.