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TO: Mayor Richard C. Irvin
FROM: Martin Lyons, Chief Financial Officer
Alexandra Voigt, Asst. Chief of Staff
DATE: May 20, 2021
SUBJECT:
To obtain the City Council's approval of the attached resolution that would authorize the execution of an extension of the Master Power agreement with Eligo Energy, IL, LLC. to provide electrical aggregation services.
PURPOSE:
To obtain the City Council's approval to authorize the Chief Financial Officer to execute a contract extension agreement with Eligo Energy IL, LLC for an electrical aggregation program.
BACKGROUND:
The Illinois Power Agency Act, Chapter 20, Illinois Compiled Statutes, Act 3855, added section 1-92 entitled Aggregation of Electrical Load by Municipalities and Counties, codified at 20ILCS3855/1-92.
In 2012, a referendum was held and approved concerning the establishment of a municipal electricity aggregation program pursuant to Public Act 96-0176. In April 2012, the City Council approved a plan of operation and governance for the program by adoption of Ordinance 12-029. The city solicited bids through the consultant to provide electricity supply aggregation to residents and small commercial businesses of Aurora in May 2012. The City aggregated once again in 2014 using the same process. However ComEd's rates decreased during this time and the City was able to terminate the agreement with supplier.
In October 2019, the City entered into an agreement with Eligo Energy IL, LLC to provide electrical aggregation for an initial term of 18 months. (R19-362).
DISCUSSION:
Specifics of 100% Renewable Aggregation program:
- Guarantees the participating residents will never pay more than ComEd
- Residents will not pay early termination if they choose to leave the program
- Continue to receive one invoice from ComEd
- Energy Supplier will purchase Renewable Energy Certificates (RECs)
- Qualifies the City of Aurora for EPA's Green Power Partnership Program
- Energy Supplier will coordinate EPA application process for the City of Aurora
Progressive Energy Group (PEG) has provided research not only into the use of 100% Renewable energy for city residents, but also the continuation of a grant program that the City may use for either future energy related projects or for any purposes approved by the City Council. In 2019, the grant program was an option from two energy providers. At this time, for an extension or renewal of a contract, the other option of provider is not bidding.
The table below shows the ComEd rates over the next year. The Aurora residents will pay the same rate as ComEd.
|
Electric Supply Options |
Per kWh |
|
Current ComEd Price to Compare |
$0.07069 |
|
ComEd Price June - Sept 2021 |
$0.06636 |
|
ComEd Price October 1, 2021 - May 31, 2022 |
$0.07159 |
What this program gets the Aurora residents is: The City will receive a civic grant of $712,000 over 18 months, 100% Green Power, which translates into:
|
Equivalent of: |
|
|
Pounds of CO2 prevented from entering atmosphere |
1,079,999,952 |
|
Passenger vehicles driven for one year |
105,835 |
|
Miles driven by an average passenger vehicle |
1,215,582,476 |
|
Pounds of coal burned |
539,780,264 |
IMPACT STATEMENT:
Approval of this resolution will provide renewable energy sources to the residents and businesses of Aurora at no additional cost over non-renewable sources, and will provide grant funding of up to $712,000.00
RECOMMENDATIONS:
The City Council approve the proposed attached resolution that would authorize the execution of an extension of a master power agreement with Eligo Energy IL, LLC for the provision of 100% renewable energy to Aurora as outlined above.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the extension of the Master Power agreement with Eligo Energy, IL, LLC. to provide electrical aggregation services.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Illinois Power Agency Act, Chapter 20, Illinois Compiled Statutes, Act 3855, added section 1-92 entitled Aggregation of Electrical Load by Municipalities and Counties, codified at 20ILCS3855/1-92; and
WHEREAS, Progressive Engergy Group has provided research not only into the use of 100% Renewable energy for city residents, but also the continued utilization of a grant program that the City may use for either future energy related projects or for any purposes approved by the City Council; and
WHEREAS, Eligo Energy IL, LLC has provided the largest Aurora Green Grant based on the City's use; and
WHEREAS, pursuant to Aurora Code Section 2-335(a)(3) the desired product is provided by only one source in this situation; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: authorizing the execution for the provision of electricity aggregation consulting services and authorize the use of Eligo Energy IL, LLC for the provision of 100% renewable energy to the City of Aurora.