Title
Northern Illinois Municipal Electric Cooperative - Resolution
History
In April 2007, the Board approved the Village’s participation in the Northern Illinois Municipal Electric Cooperative (NIMEC) in order to obtain more favorable pricing of the Village’s electric needs. NIMEC is a cooperative with 170 members, 123 municipalities and 47 other districts, that pools the energy needs of its members in order to secure more competitive pricing based on higher volumes than can be provided individually to a single municipality (see attached NIMEC fact sheet). These members purchase more than $20M in electrical energy each year through NIMEC; in the past, this aggregate purchasing power provided savings between 15 - 35%. The savings the Village has realized over the last four years by participating in NIMEC is approximately 20%.
Although the exact dates are not known, upon renewal of the Village's membership, NIMEC will once again go out to bid on the Village’s behalf in order to obtain the most favorable pricing on the Village’s eight largest electric accounts - Sportsplex, Centennial Pool, Humphrey Ballfields, Main Pump Station, three Booster Stations and the Civic Center, as our current electricity contract for these accounts expires in May 2017. It is anticipated that the bids will be recieved at some time between February 1 and March 31, depending on market conditions. NIMEC will obtain 12, 24 and 36 month pricing. Each member will be able to choose the term that best fits its needs.
Staff recommends that the Village continue its participation in this cooperative in order to realize substantial savings on the cost of electricity and asks that the Board approve the continuation of this participation for the next three years, subject to the continued performance level of NIMEC.
This item is being considered by the Finance Committee and the Village Board of Trustees on the same night.
Financial Impact
The Village included an increase of approximately 4...
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