Title
Electrical Municipal Aggregation Program - Approval
History
Following the passage of a voter Referendum in March 2012, the Village has managed an Electrical Municipal Aggregation (EMA) program, leading to approximately $377 dollars in total savings for the average participating Orland Park homeowner, for a total of approximately $7 million in savings.
The Village’s current EMA program is due for renewal. NIMEC, the Village’s consultant was authorized by the Village Manager to obtain bids for competitive pricing from various electric suppliers. Unfortunately, the pricing provided by other supplies came in higher than the new ComEd rate of 7.052¢ per kWh that took effect on June 1, 2019. Please see attached BID document for reference. Based upon the bids received, there are no savings available to residents by purchasing energy from an alternative provider. As such, NIMEC is proposing two alternative EMA program options for a period of one year.
The first option would be to provide Village residents with 100% renewable ("green") energy, with guaranteed pricing that matches the ComEd rate of 7.052¢ per kWh, as follows:
--Every residential electric account establishes unique usage consumption patterns. Factors such as volume, time of day, single family vs. multi-family, and usage during ComEd peak periods combine to create a complex power usage profile.
--When suppliers analyze a community for a Green Community Aggregation program, they calculate the price for each individual account and switch only those accounts for which power costs less than the ComEd default rate.
--The supplier will purchase and retire Renewable Energy Certificates (RECs) to represent 100% of the historical power consumption for the entire aggregation community. The remainder of the accounts that are costlier to serve will remain on ComEd supply service.
--RECs are tracked, numbered and audited and may only be used once and are then retired.
--The profit margin on the favorab...
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