Title
A Resolution Authorizing the Village Manager to Enter into a Contract for Purchase of Electricity from the Lowest Cost Electricity Provider for the Purpose of Commercial Accounts Through the Northern Illinois Municipal Electric Collaborative Bid Process
History
In 2007, the State of Illinois implemented a plan to deregulate Commonwealth Edison. Under deregulation, ComEd no longer generates electricity for its customers but continues to provide power through its distribution system. As a result of the deregulation, electricity is purchased based on market price and is no longer dominated by one electrical supplier.
In 2007, the Village joined the Northern Illinois Municipal Electric Collaborative (NIMEC), which is a municipal collaborative that pools the energy needs of members in order to secure more competitive pricing than can be provided individually to a single municipally, based on higher volumes. The Collaborative is made up of 180 members, most of which are municipalities. The amount of aggregated energy purchases of the Collaborative is $25 million.
Since 2007, the Village has utilized NIMEC to receive electrical supply pricing for Village facilities and has experienced energy cost savings. The Village’s current contract with Dynegy expires in May 2026. Following the expiration of this contract, the Village could revert to ComEd’s supplier for electrical supply. However, ComEd’s supplier only offers a floating market rate, which changes every hour. Therefore, the rate of this hourly market rate is impossible to estimate, as it is dependent upon future market conditions, as well as the specific times the accounts consume the power. The only source of fixed electrical rates in Illinois is from third party, non-ComEd, suppliers.
In order to take advantage of deregulation, it is recommended that the Village receive bids from several electrical suppliers for its non-franchise Village-owned facilities, including recreational facilities an...
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