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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer
Chuck Nelson, Deputy Mayor
DATE: October 8, 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 Electricity Aggregation Services and enter into a Master Power agreement with Eligo Energy, IL, LLC.
PURPOSE:
Progressive Energy Group has a local office in Aurora, IL and will assist the City in providing an electricity aggregation program.
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.
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 Ordinance 12-029. The city solicited bids through the consultant to provide electricity supply aggregation to residents and small commercial businesses of Aurora in May 2012. The City aggregated once again in 2014 using the same process. However ComEd's rates decreased during this time and the City was able to terminate the agreement with supplier.
The City originally considered using PEG in early 2018, but at their own suggestion PEG stated the City should not hire them yet, due to the State of Illinois reduction in electricity rates, which in effect would eliminate savings due to aggregation at that time. PEG basically used their mark...
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