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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: March 6, 2014
SUBJECT:
A Resolution Authorizing the Execution of an Agreement with Good Energy, L.P., for the Provision of Electricity Aggregation Consulting Services
PURPOSE:
To obtain the City Council's approval of the attached resolution that would authorize the execution of an agreement with Good Energy, L.P., for the provision of electricity aggregation consulting services.
BACKGROUND:
In January of 2010, the State of Illinois completed the process of deregulating the electricity industry in the state with the passage of Public Act 96-0176. The law permits municipalities to shop for electricity for their residents and small commercial businesses in the aggregate.
Before a municipality may pursue the establishment of an "electricity aggregation program," the residents of a municipality must endorse the initiative through a referendum. Aurora voters approved the establishment of an electricity aggregation program in the city by a vote of 61.4% to 38.6% on March 20, 2012.
With the assistance of its consultant, Good Energy, L.P., the city solicited competitive bids for the provision of electricity to its residents and small businesses. In May of 2012, the city selected First Energy Solutions to provide electricity at a rate of 4.71¢ per kilowatt-hour for a period of two years. The contract included terms for 100% renewable energy.
The per-kilowatt-hour-rate garnered by the city was among the lowest rate obtained by any municipalities operating electricity aggregation programs in the Chicago metropolitan area. Aurora's electricity aggregation program will have saved its residents and small commercial businesses an estimated $20 million during the two-year term of its first supply contract.
DISCUSSION:
The city's electricity supply contract with First Energy Solutions will expire with the meter readings taken in August 2014. It is time to prepare for the potential execution of a new supply contract.
Good Energy provided the professional services that permitted the city to institute its highly successful electricity aggregation program. The company was selected pursuant to a request-for-proposal process during which a total of five proposing firms were evaluated. We concluded that Good Energy had the breadth of experience in Illinois and elsewhere as well as a record of success that indicated the firm had the capacity to serve the city well. Their performance on behalf of our residents and small commercial businesses in establishing the city's electricity's aggregation program and administering the bid process for our first contract proved that our confidence was well placed.
Our first consulting services agreement with Good Energy included both pre- and post-referendum services. To prepare for our second electricity supply contract, the city now only requires what were post-referendum services under the first agreement with Good Energy. Specifically, we presently required the following major consulting services:
1. Conduct a community information campaign consisting of:
a. One direct informational mailing.
b. One informal informational notice in newspapers of general circulation in Aurora.
c. One informational notice for Aurora's website.
d. Attendance at community meetings.
2. Coordination of the supply bidding process.
a. Development of bidding solicitation documents.
b. Attending a pre-bid conference.
c. Receiving bids.
d. Analyzing bids received.
e. Providing a report of the bidding results.
f. Negotiating the terms of a supply contract.
g. Providing a report of the bidding results.
3. Coordination of the opt-out mailing with the selected supplier.
4. Attend public hearings or council meetings.
5. Coordinate with Commonwealth Edison and the Illinois Commerce Commission as
necessary.
6. Perform all tasks reasonably necessary to facilitate Aurora's migration to the newly selected or current electricity supplier.
7. Provide after-purchase program delivery and on-going daily monitoring.
8. Perform any other procedural steps or conditions required by the state to implement the electricity aggregation program.
The agreement that follows the attached resolution would permit Good Energy to provide the electricity aggregation consulting services that we now require. The firm has agreed to provide the services as the same price for which they provided our post-referendum services in 2012.
Good Energy is licensed to serve as a utility agent, broker, and consultant by the Illinois Commerce Commission.
Good Energy has no past-due balances with the city.
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council approve the proposed, attached resolution that would authorize the execution of an agreement with Good Energy, L.P., for the provision of electricity aggregation consulting services.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Execution of an Energy Agreement with Good Energy, L.P. for the provision of Electricity Aggregation Consulting Services.
body
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, recently, 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 20 ILCS 3855/1-92 (the "Act"); and,
WHEREAS, on December 13, 2011, the Aurora City Council approved Ordinance No. O11-067, which provides for the electors of the City of Aurora to consider the question of whether the City of Aurora should have the authority under Public Act 96-0176 to arrange for the supply of electricity for residential and small commercial retail customers who have not opted out of such program (the "Referendum"); and,
WHEREAS, on March 20, 2012, the electors of the City of Aurora approved the Referendum; and
WHEREAS, the City has deemed that it would be beneficial to engage a qualified consultant to assist with the procurement of the supply of electricity for residential and small commercial retail customers; and
WHEREAS, the City has determined that Good Energy, L.P. is highly qualified to provide the required electricity aggregation consulting services; and
WHEREAS, the 2014 City Budget provides $48,995.00 for this item in account no. 215-2502-415.32-99 (Gaming Tax Fund).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
Section 1. The Mayor of the City of Aurora is authorized to execute the attached agreement with Good Energy, L.P., for the provision of electricity aggregation consulting services.
Section 2. The Chief Financial Officer/City Treasurer is authorized to take other actions as necessary to implement the attached agreement.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
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