Title
Electrical Aggregation Program - Consultant
History
On December 19, 2011, the Village Board passed an ordinance to place a referendum question on the March 20, 2012, ballot to allow for an “opt-out” energy aggregation program.
On December 22, 2011, the village published a Request for Qualifications for energy consulting services to provide the following scope of services:
-- Work with Orland Park staff and elected officials to develop and implement a residential and small commercial electric aggregation “opt-out” program for the residents and small commercial businesses of incorporated Orland Park.
-- Develop an electric aggregation public information program.
-- Develop an “Aggregation Plan of Operation and Governance.”
-- Work with Orland Park staff to organize, advertise, and attend public hearings.
-- Write bid specifications for an electric utility supplier and work with the Orland Park Finance Department to conduct a competitive bid for the procurement of electricity for the incorporated residential and small commercial customers in Orland Park.
-- Manage an on-going electric aggregation program through the end of the contract term.
-- Develop and maintain an effective computer system to record and analyze energy requirements and corresponding transaction.
-- Routinely review random billings within the aggregation to monitor accuracy of billings to residents and small commercial businesses and provide documentation of such to Orland Park.
-- Attend Orland Park board and committee meetings to give periodic updates on the aggregation progress, consumers’ savings, and ongoing system checks.
The professional engagement will be modeled as an energy broker relationship. That is, the consultant is paid an annual commission based on a percentage of electrical load that is awarded to an alternative retail energy supplier (ARES). The Village does not outlay the funds.
Proposals were submitted by four energy aggregation consultants: Northern Illinois Municipal Electric Collaborative (NIMEC), Constellation Energy, Independent Energy Consultants (IEC), and the Illinois Community Choice Aggregation Network (ICCAN). After reviewing the proposals, staff interviewed NIMEC and ICCAN representatives. Upon completion of interviews, as well as review of the proposals that included pricing, experience, and overall evaluation of the firms’ ability to assist the Village with execution of the program, staff recommends entering into a contract with NIMEC for energy aggregation consulting services.
NIMEC offered a consulting price of 17.5 cents per MW. With an estimated annual village-wide consumption of 210 million kwh, the annual fee would be $36,750. Said commission is included in the bid profile placed in the competitive energy marketplace. The village has been a member of NIMEC for a number of years, participating in the bid process for our electricity needs related to street lighting, ball field lighting, pump stations, and the Sportsplex. It should also be noted that NIMEC has a successful track record in placing electrical load for street lighting and other electricity needs for multiple municipalities in Northern Illinois.
Financial Impact
There are no direct costs to the Village associated with this agreement. Fees will be paid on a commission basis by the successful alternative energy service provider.
Recommended Action/Motion
I move to approve an energy aggregation consulting services contract with Northern Illinois Municipal Electric Cooperative (NIMEC);
And
Authorize the Village Manager to execute the agreement.