Trustee Robinson requested examples of municipalities utilizing the Joule
model. Consultant Pruitt said they are in Westchester County, New York.
He said he can provide a list of about 30 municipalities and he may be
able to put the Village in contact with them. Trustee Robinson inquired
about the penalties, if any, under the Joule model. Consultant Pruitt
responded there can be zero penalties. The Village will pay a premium and
it will be specific to each renewable energy project based on the risk
tolerance and the funding structure of those renewable energy assets.
Trustee Robinson asked if there are parallel agreements around data
collection and specifying the use of renewable sources within the contract,
whether those would apply with the Joule model, and whether the consultant
would recommend the Village enter into a parallel contract. Consultant
Pruitt said he would recommend that and noted a lot of those requirements
are in the Village's current agreement with its retail energy supplier which
he recommends continuing because there is more to manage now. Trustee
Robinson said she is in support and requested more information in the next
stage about setting up parallel contracts. Consultant Pruitt confirmed that is
where we are headed.
Trustee Parakkat asked if the savings from investing in energy efficiency
can be used towards the investment required. Consultant Pruitt said some
municipalities look at it that way, others view it as a revenue to the general
fund. One recommendation in the next stage of analysis is to get that firm
number from ComEd, then look at what renewable energy projects have
been scoped out, and see if they match up. Trustee Parakkat asked if this
decision to change is reversible. Consultant Pruitt confirmed it is though
there is a minimum stay of two years.
Trustee Parakkat inquired if the Village needs to consider an incremental
risk exposure or risk management cost. Consultant Pruitt responded that it
has to be a discussion point going forward. The first step is to analyze how
many dollars are on the table. The consumption is known and can be
aligned over price projections to identify the extent to which there is a risk
of under-collection. Trustee Parakkat said he supports exploration to
understand the next level of detail.
Trustee Buchanan clarified that ComEd is not giving the Village free
electricity. The cost the municipality incurs is spread among the residents,
which Consultant Pruitt confirmed. The change would be the cost that the
Village incurs, the Village would get paid, but if ComEd is not giving
electricity for free, it's still coming from the residents, which Consultant
Pruitt confirmed. Trustee Buchanan said the cost might be lower if the
Village is incentivized to decrease their use. Consultant Pruitt confirmed
the cost-benefit would then flow to the residents. If the Village was to
reduce its consumption and is getting its free electricity, it would not impact
the municipal operations. The Village would incur the capital cost
necessary to make the upgrades to reduce its consumption. The credits