Title
A Resolution Authorizing The Participation In The Northern Illinois Municipal Electric Collaborative (NIMEC) Bid Process And Authorizing The Village Manager To Approve A Contract For Street Lighting And Commercial Accounts With The Lowest Cost Electricity
History
In 2007, the State of Illinois deregulated its electric market. Prior to that, ComEd both generated and delivered the power to residential and commercial customers. The legislation required ComEd to transfer ownership of its nuclear reactors to its parent, Exelon. Illinois then opened its borders for other energy generators to compete with Exelon. ComEd remains a monopoly and delivers the power to commercial and residential users, regardless of who generates the power.
The Village has been using NIMEC as its broker since 2008. NIMEC is paid by the electric supplier for originating the business. The Village does not compensate NIMEC and is not under contract with NIMEC.
NIMEC has extensive expertise in the northern Illinois power market. Also, NIMEC manages a buying collaborative, aggregating the collective power of 123 municipalities, as well as 47 library/park district/water districts. The collective volume of the buying collaborative ($20 to $25 million/year) allows NIMEC to negotiate rates that are lower than what an individual municipality could negotiate on their own. The Village has enjoyed a good working relationship with NIMEC since 2008.
This resolution pertains to the purchase of electricity for the Village street lighting and commercial accounts. NIMEC also is the leading consultant in Municipal Aggregation in northern Illinois.
Prices within the commodity markets (including electricity) are constantly fluctuating. Therefore, NIMEC’s bid prices are only good for the day they are provided. As such, staff requests the Board delegates signing authority to the Village Manager to accept a bid by entering into a contractual relationship with the winning power supplier.
Recommended Action/Motion
I move to adopt Resolution 2503, entitled: A RESOLUTION AUTHORIZING THE PARTICIPATION IN THE NORTHERN ILLINOIS MUNICIPAL ELECTRIC COLLABORATIVE (NIMEC) BID PROCESS AND AUTHORIZING THE VILLAGE MANAGER TO APPROVE A CONTRACT FOR STREET LIGHTING AND COMMERCIAL ACCOUNTS WITH THE LOWEST COST ELECTRICITY PROVIDER.