Title
Renewal of Membership in Northern Illinois Municipal Electric Cooperative
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 given that the industry had just deregulated. NIMEC is a cooperative with approximately 110 members, mostly municipalities (see attached list of members) 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. 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%.
Upon joining last year, NIMEC went out to bid on the Village’s behalf in order to obtain the most favorable pricing on the Village’s largest five electric accounts - Sportsplex, Centennial Pool, FLC, Humphrey complex and the main water pumping station. When the bid came in, it was determined that only the Sportsplex, Centennial Pool and the main water pumping station accounts would realize any savings by changing over to a new supplier. Constellation New Energy was awarded the bid; to date the Village has realized savings of approximately $94,700.
ComEd will be setting its new rates in late January or early February. Although the exact dates are not known, NIMEC will be going to bid soon thereafter. Upon Board approval, NIMEC will once again go out to bid on the Village’s behalf with a minimum of two suppliers to obtain the lowest bid. This bid process should occur some time in February. The term of the bid will be June 2008 - May 2009. NIMEC is anticipating a 10% increase in the cost of electricity for the bid period. Upon selection of the lowest bidder, the Village would have two days to enter into a contract with this bidder. This contract would have a termination date of May 200...
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