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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: May 8, 2014
SUBJECT:
A Resolution Authorizing the Execution of an Agreement for the Provision of Electricity Pursuant to the City of Aurora Electricity Aggregation Program
PURPOSE:
To obtain the City Council's approval of a proposed resolution that would provide for the execution of an agreement to provide electricity to residents and small commercial businesses pursuant to the city's electricity aggregation program.
BACKGROUND:
On March 20, 2012, the electors of the city approved a referendum question concerning the establishment of a municipal electricity aggregation program pursuant to Public Act 96-0176. On June 26, 2012, as required by state law, the City Council approved a plan of operation and governance for the program by the adoption of Ordinance No. O12-047. In May of 2012, the city accepted competitive bids for the provision of electricity to residents and small commercial businesses. The city accepted the bid of First Energy Solutions to provide electricity at a rate of 4.71? per kilowatt hours for two years beginning in August 2012. The power supply agreement with First Energy Solutions provided a savings of an estimated $20 million over the agreement's two year term.
DISCUSSION:
The term of the first electricity aggregation power supply agreement will expire in August 2014. We now must accept bids to ascertain whether it is advantageous to the residents and small commercial customers in the community to enter into a new power supply agreement with an independent electricity supplier or return to ComEd as our supplier.
We expect to accept bids from independent electricity suppliers on May 27, 2014. Bids will be solicited for the following general options:
1. Duration:
a. 12 months.
b. 24 months.
c. 30 months.
d. 36 months.
2. Green/Renewable Power:
a. 25%.
b. 50%.
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