Submitted By
Rob Cole, Assistant Village Manager
Reviewed By
CLP.
Agenda Item Title
Title
A Resolution Authorizing Execution of an Amendment to the Power Supply Agreement with Constellation NewEnergy, Inc., for the Oak Park Community Choice Aggregation Program Period of June 2015 through August 2015.
End
Overview
Overview
The Amended Agreement extends Constellation NewEnergy, Inc., power supply and related services to the Oak Park Community Choice Aggregation program through the August 2015 meter reads and authorizes new negotiated rates covering the extended period.
Body
Staff Recommendation
Approve the resolution.
Fiscal Impact
Apart from staff time, there is no fiscal impact.
Background
The original Oak Park Community Choice Aggregation program supply contract with Integrys Energy Services, Inc., (Integrys) was for a two-year period, January 2012 through December 2013. Due to favorable terms, the Integrys contract was later extended through the May 2014 meter reads. As the Integrys Agreement neared its conclusion, rates in the marketplace had sharply increased and the Village elected to initiate a competitive process for the next contract period. A reverse auction was conducted in April 2014 and Constellation NewEnergy was the lowest bidder; they were awarded a supply agreement through the June 2015 meter reads. In order to move the renewal cycle beyond the ComEd rate announcement, which typically occurs in May or June, as well as to provide for an improved bid solicitation process, the Village's municipal aggregation consultant, Illinois Community Choice Aggregation Network (ICCAN), recommends that the renewal cycle be shifted by two months. Consequently, a two month extension has been negotiated with Constellation NewEnergy.
Alternatives
An alternative to approving the contract would be to dissolve the aggregation, with all members returned to the utility default rate. However, the Village's commitment to maintain a clean energy portfolio would be lost. It should also be noted that rather than defaulting to the standard ComEd fixed rate, aggregation members could also choose to seek fixed rate power from an Alternative Retail Electric Supplier of their own choice, or perhaps look to participate in a real time pricing alternative to reduce electric costs.
Previous Board Action
The Board approved the Community Choice Aggregation Plan of Operation and Governance on September 26, 2011, and, on October 18, 2011, awarded a two-year contract to Integrys to supply an energy portfolio comprised of 100% wind renewable energy credit offsets at a rate of 5.79 cents per kilowatt hour. The new energy supply rate appeared on Oak Park residential and small business electric accounts in January 2012. In June 2013 the Board approved an extension of the contract with Integrys through the May 2014. In April 2014, a contract was awarded to Constellation NewEnergy to provide electric supply and related services through the June 2015 meter reads. The Board also approved an aggregation consultant agreement with the ICCAN in February 2015.
Citizen Advisory Commission Action
An Oak Park Community Choice Aggregation presentation, including discussion of the proposed extension, was provided to the Energy and Environment Commission at their April 7, 2015 meeting and they expressed support for the strategy.
Anticipated Future Actions/Commitments
Assuming the amended agreement is authorized, staff will work with ICCAN to refine the implementation schedule for the next enrollment period, including proposing bid alternatives, timing, and other elements. It should also be noted that feedback from the Energy and Environment Commission will help shape bid alternatives and staff recommendations. Bid alternatives may include an incremental charge with minimal impact to aggregation members in order to support energy efficiency and conservation programs and services.
Intergovernmental Cooperation Opportunities
N/A.
Performance Management (MAP) Alignment
N/A.