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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer
Chuck Nelson, Deputy Mayor
DATE: August 4, 2020
SUBJECT:
A resolution authorizing the Chief Financial Officer to execute an agreement with Nexamp to provide community solar electricity to various city accounts not covered by under the ComEd franchise agreement.
PURPOSE:
Authorizing the Chief Financial Officer to execute an agreement with Nexamp to provide solar electricity to various city accounts not covered by under the ComEd franchise agreement.
BACKGROUND:
In December 2019, the City worked with Progressive Energy on a reverse auction to provide electricity on approximately 75 larger city accounts. At that time, we stated the smaller accounts would be looked at later to determine the best value/source. Progressive Energy, our energy consultant, has brought an option for solar provided energy from Nexamp to service these accounts.
DISCUSSION:
As part of the Illinois Future Jobs Energy Act (FEJA) Illinois has developed “Community Solar” programs.
Community Solar is an arrangement under which multiple customers subscribe to a single large Solar system. By subscribing, individual customers offset their own electricity use with a portion of the electricity generated by the community solar system. The project might be located near the customer or many miles away, but it must be in the same utility service territory as the customer. Without the support of subscribers, many Community Solar projects would never have been constructed-meaning that by subscribing to a Community Solar project, you are helping support the development of new solar energy generation in Illinois. A subscription to a Community Solar project allows you to receive credit on your electric bill for the energy produced by that project. Through net metering, your electric bill will be credited for the Community Solar project’s energy production, although you may have to pay separately for your subscription. Community Solar is not the same as “green” or “renewable” supply offers from an Alternative Retail Electric Supplier. Unlike community solar projects participating in Illinois Shines, those offers may rely on renewable energy projects outside Illinois and/or projects developed many years ago.
Progressive Energy requested two Community Solar Subscriber suppliers to provide options:
Nexamp Solar
Offers a flat 20% discount to ComEd’s electric supply price
15-year contract,
Asking for three-year commitment but City can leave at any time with 60-day notice and $0 termination fee.
Must pay two invoices for each ComEd account.
ComEd
NexAmp
US Solar
Offering 20% discount to ComEd electric price
20- year contract with 6-year out option with more onerous early termination fees
Must pay two invoices for each ComEd account
The City of Aurora has 15 accounts that remain on ComEd tariff service. This is currently the best price option for these accounts. We are recommending the City of Aurora take advantage of a new program available in Illinois called Community Solar or branded as “Illinois Shines”. The contract would be with Nexamp Solar for 15 accounts. Nexamp will sell power to the City at a 20% discount vs ComEd rate for the next 15 years. This will generate an additional $6,151 in annual savings based on current pricing.
IMPACT STATEMENT:
It is estimated to save $6,151 in annual savings, however if we do not move forward the expense for these accounts will remain the same.
RECOMMENDATIONS:
Request that a resolution authorizing the Chief Financial Officer to execute an agreement with Nexamp for solar energy provided electricity for various city accounts.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the Chief Financial Officer to execute contracts with Nexamp to provide solar powered energy for various City of Aurora accounts.
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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, Illinois municipalities were afforded the opportunity to purchase electricity from any one of the multiple electricity suppliers in the market place effective January 1, 2007; and
WHEREAS, Progressive Energy on behalf of the City of Aurora, solicited quotes to provide community solar pricing for various city accounts; and
WHEREAS, costs for the expense will remain in the corresponding division 62-04 account; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: A resolution authorizing the Chief Financial Officer, or the Director of Purchasing, to execute an agreement with Nexamp for solar energy provided electricity for various City of Aurora accounts.