Submitted By
Rob Cole, Assistant Village Manager
Reviewed By
CLP
Agenda Item Title
Title
Motion Directing Staff to Proceed with a Presentation to the Energy and Environment Commission regarding the Solicitation of Energy Supply Bids for the Oak Park Community Choice Aggregation.
End
Overview
Overview
As a part of the Community Choice Aggregation program for residential electrical supply, the Village's consultant, Illinois Community Choice Aggregation Network, is recommending the timing and process for securing pricing for the next Community Choice Aggregation energy supply contract. Staff recommends review with the EEC of these recommendations, which will also allow for interested local groups to participate in the decision-making process.
Body
Staff Recommendation
Approve the motion.
Fiscal Impact
N/A.
Background
The original Oak Park Community Choice Aggregation supply contract with Integrys Energy Services, Inc., (Integrys) was for a two-year period, January 2012 through December 2013. The agreement was later extended to without a change in terms through the May 2014 meter reads. Pursuant to a reverse auction process, the Village awarded a successor supply agreement to Constellation in April 2014.
The current supply agreement with Constellation expires with the June 2015 meter reads. In an effort to shift the renewal cycle to later in the year, thereby increasing the likelihood that ComEd's spring rate announcement will be published before any supply agreement is awarded, staff concurs with the consultant's recommendation that the Village enter into a contract extension with Constellation to move the renewal cycle to July.
Supplier bid alternatives will be developed through a collaborative process involving the Energy and Environment Commission and associated public participation, and may include one or more stand-alone or combination alternatives, as follows:
1. 100% standard power mix*
2. 100% standard power mix with opt-out local energy innovation contribution of $0.00116 per kWh**
3. 100% standard power mix with opt-in 100% Renewable Energy Certificates ***
4. 100% Renewable Energy Certificates ***
* The standard power mix includes, by state statute, 10% renewable energy as of June 1, 2015.
** The incorporation of a local energy innovation fee of $0.00116 (roughly one tenth of one penny) increment would generate approximately $200,000 annually, which could be used to fund priority energy-related Oak Park local implementation projects, including the Smart City USA pilot. The fee would impact the average residential customer by no more than $0.75 (seventy-five cents) per month.
*** As a practical matter, options including "100% Renewable" supply continue to receive the standard energy mix, but 100% of the associated carbon emissions are offset through the purchase of Renewable Energy Certificates (RECs), which support development of renewable energy sources in Illinois or beyond by creating demand for documented wind or solar generation, but primarily wind.
Alternatives
The Board may elect to provide additional guidance via a modification to the recommendation, or defer action for a later date. Alternatively, the Board could elect to allow the current electric supply agreement to expire without a successor contract and this would effectively dissolve the aggregation program and return residents to the utility default rate. In the event of dissolution, residents would also be free to choose an Alternative Retail Electric Supplier of their own choice, as well as the power mix of their choice; however, it is likely that most would simply be returned to the ComEd standard energy mix by default.
Previous Board Action
The Village Board authorized a professional services agreement on February 2, 2015, with the Illlinois Community Choice Aggregation Network for Community Choice Aggregation consultant services.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
The proposed supply contract renewal with Constellation will be advanced to the Village Board for review and approval, as would be any successor supply agreement secured through a competitive bid process.
Intergovernmental Cooperation Opportunities
A previous effort to participate in a multi-jurisdiction aggregation initiative coordinated through the Metropolitan Mayors Caucus was not successful.
Performance Management (MAP) Alignment
N/A.