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TO: Mayor Richard C. Irvin
FROM: Christopher Minick, Chief Financial Officer
DATE: April 7, 2025
SUBJECT:
A resolution authorizing the Chief Financial Officer to execute an agreement with an electricity supplier to provide electricity to various city facilities and street lighting not covered under the ComEd Franchise Agreement
PURPOSE:
To obtain the City Council's approval to authorize the Chief Financial Officer to execute an agreement resulting from a competitive bid process conducted by the city's electricity consultant, Progressive Energy Group. It is necessary to execute the contract before close of business on the day of the bid. The competitive bid process is targeted for the last week in April 2025.
If the Chief Financial Officer is unavailable to confirm a contractual agreement, the Director of Purchasing is authorized to do so.
BACKGROUND:
Shell Energy provides electricity to nearly 85 accounts/city facilities not covered under the current ComEd Franchise Agreement, with a contract expiring June 1, 2025. The City has historically used the services of a consultant to obtain bids from electricity suppliers. Progressive Energy Group was contracted in October 2019 to provide these services and was used again in 2022. They will continue to review and identify renewal opportunities. The bids include an array of sourcing options: i.e. duration of commitment, percentage green energy, percentage blended energy.
The city must choose their preferred options and enter into a contract prior to close of business the day of the opening.
DISCUSSION:
Electricity is a commodity in which the price changes daily. Long term agreements are priced to offset market risks. The percentage of green energy influences price. Should the city choose to delay entering an agreement at the conclusion of the reverse auction, proposers would increase price to offset their risk.
Attached are the estimated rates currently available for Large Accounts, Small Accounts and...
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