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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer
Chuck Nelson, Deputy Mayor
DATE: September 30, 2019
SUBJECT:
To obtain the City Council's approval of the attached resolution that would authorize the execution of an agreement with Progressive Energy Group (PEG), for the provision of Energy Agent Consulting Services.
PURPOSE:
Progressive Energy Group has a local office in Aurora, IL and will assist the City in acquiring natural gas, electric supply and demand response programs, along with providing an aggregation option.
BACKGROUND:
The City has had two previous providers for similar services. In 2012, Good Energy was awarded the contract and retained it until 2016 when it was awarded to Tradition Energy. In these buying situations it's not uncommon to turn to an outside party with more expertise in energy trends and cost forecasting.
DISCUSSION:
It shall be the responsibility of PEG to provide CITY OF AURORA an audit and RFP service that will examine several factors including but not limited to:
Natural Gas Pricing and Procurement
Electric Pricing and Procurement
Applicability of Taxes, Utility Rates and Tariff Charges
Utility Metering Charges
Demand Response Programs
Green and Carbon Free Programs
Illinois Solar for All Programs
Recommendations for Savings
Supplier Contract Review and Compliance with Industry Standards
Execution Strategy for Implementation
Ongoing Energy Industry Trends and Marketplace Intelligence
Budget Review and Development for Energy Supply and Delivery
Total fees for the first year consulting fees will be $19,000 paid to PEG and $3,000 annually thereafter. The breakdown of fees paid to PEG is listed below:
1) $10,000 for the initial electric sourcing agreement.
a) This will only be paid if the City of Aurora saves is at least $100,000 annually vs.
current contract.
b) This will only be paid if the City of Aurora electric price is at least 5% lower than Wes...
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