Lake Forest Joins North Shore Consortium Seeking Better Electric Rates

The Lake Forest City Council last week took the first step in addressing future electric rates by approving an intergovernmental agreement between the city and seven other communities to form their own electrical consortium.

The new North Shore Electricity Aggregation Consortium includes the cities of Lake Forest, Highland Park and Park Ridge, along with the villages of Deerfield, Glencoe, Lake Bluff, Northbrook and Skokie.

After previous discussions with the various community staff and governmental leaders, Lake Forest council members in November approved the city seeking bids to obtain another provider in hopes of landing a better electrical rate. 

The next step will be to prepare for a March 20 referendum on whether the city should continue to move ahead in the process. If approved by voters, residents still have the option of opting out and choosing their own electric service provider.

“If city voters agree, we will start potential work with a consultant,” said Carina Walters, assistant city manager. “Once the vote is completed, then we will have a complete plan and inform/educate residents. We will have at least two public meetings so they’re aware of the process.”

City Manager Bob Kiely said staff now has to evaluate a “fast-track” over a regular process so the group is in position to take advantage of better rates earlier. The consortium has the final say on when to move.

“What we are really evaluating right now is what is the value of the fast-track process vs. the regular process, as under that scenario we might not be in position until next summer,” Kiely said. “We would like to be in position soon after March 20 as possible, so we can go to market and secure the most favorable process” and get the best rates.

Once the referendum passes, Kiely said, “the city council may be asked to approve a range of pricing to lock in. You are buying a commodity and the savings are dependent on what the market is that day. We will be depending on the consultant to say, ‘Lock in those rates that day.’ ”

Walters said the fast-track process could have residents seeing different rates by this June, but she added there are no guarantees.

“We can go through the entire process and may not see better rates,” she said.

• See the attached press release from the city of Lake Forest along with an FAQ from the North Shore Electricity Aggregation Consortium.