Title
Electrical Municipal Aggregation Program - Approval
History
Following the passage of a voter Referendum in March 2012, the Village has managed an Electrical Municipal Aggregation (EMA) program, which resulted in savings to residents.
The Village’s current EMA program is due for renewal. NIMEC, the Village’s consultant was authorized by the Village Manager to obtain bids for competitive pricing from various electric suppliers. Unfortunately, the pricing provided by other supplies came in higher than the new anticipated rate by ComEd that will take effect on June 1, 2021. Based upon the bids received, there are no savings available to residents by purchasing energy from an alternative provider. As such, NIMEC is proposing an alternative EMA program option for a period of one (1) year. The option would be to select MC Squared who has offered to match the variable ComEd rate, from month to month, and provide a one-time civic contribution grant of $250,000 to be used for various capital projects.
Terms of the program include:
-- Residents may opt out and leave the aggregation program at any time for any reason, and will never be charged an early termination fee.
-- Residents who have already contracted with another supplier on their own are not included in the program.
-- All residents will continue to be billed by ComEd.
-- All residents will pay the exact same variable ComEd default rate.
David Hoover from NIMEC will be available to present an overview of the program, its numerous benefits, and answer any questions prior to the Board decision.
Financial Impact
There are no direct cost impacts and/or consultant fees. Consultant fees will be paid via the third party electrical supplier associated with municipal aggregation.
Recommended Action/Motion
I move to approve the Electrical Municipal Aggregation program with the matching variable ComEd Rate for a period of twelve (12) months with MC Squared for the supply of electric energy to Village residents pursuant to the Village's electricity aggregation program;
And,
Authorize the Village Manager to negotiate terms of a civic contribution on the Village’s behalf.