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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...
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