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TO: Mayor Richard C. Irvin
FROM: Chris Minick, Chief Financial Officer/City Treasurer
Alex Voigt, Deputy Chief of Staff
DATE: September 8, 2023
SUBJECT:
To obtain the City Council's approval of the attached resolution that would authorize the execution of an agreement between the City of Aurora and MC2 Energy Services to provide electrical aggregation services.
PURPOSE:
To obtain the City Council's approval to authorize the Chief Financial Officer to execute an agreement with MC2 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 O12-029 (attached) and amended the ordinance in 2014 (O14-046, attached) to incorporate changes to the program after the first two years in operation.
The city previously solicited bids through the consultant to provide electricity supply aggregation to residents and small commercial businesses of Aurora in 2012 and 2014. In 2019, the city entered into an agreement with Aurora-based company Progressive Energy Group (PEG) to manage the city's program services. In 2019 and again in 2021, PEG negotiated the contract for the city's electrical aggregation program.
The agreement before the Council today was also vetted through PEG.
DISCUSSION:
The landscape of aggregation programs has changed significantly over the past two years. The Environmental Protection Agency (EPA) changed the program requirements, and the program before the Council today is reflective of those changes.
The proposed program is the only bidder that offered both a ComEd Price Match Guarantee and a Civic Grant Program.
IMPACT STATEMENT:
Approval of the proposed program will have a positive impact on Aurora residents through the "Civic Grant Program".
RECOMMENDATIONS:
Staff respectfully requests approval of the attached resolution.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the approval of an agreement with MC2 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, the City has deemed it to be beneficial to engage qualified consultant to assist with the implementation of an electricity aggregation program; and
WHEREAS, it has been determined that MC2 will be the most beneficial to the city for a new aggregation program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: authorizing the Chief Financial Officer or Director or Procurement to execute the agreement between the City of Aurora and MC2 for the provisions of electrical aggregation and civic grant program as outlined in Exhibit A.