HomeMy WebLinkAboutRESOLUTION - 47-06 - 11/14/2006 - PARTICIPATE IN NIMECRESOLUTION NO. 47-06
A RESOLUTION AUTHORIZING THE PARTICIPATION IN THE NORTHERN
ILLINOIS MUNICIPAL ELECTRIC COOPERATIVE (PIIMEC) AND AUTHORIZING
THE VILLAGE MANAGER TO APPROVE A CONTRACT WITH THE LOWEST
COST ELECTRICITY PROVH)ER
WHEREAS, on January 2, 2007, the State of Illinois is implementing a plan to
deregulate Commonwealth Edison; and
WHEREAS, under the aforementioned deregulation plan, Commonwealth Edison will
no longer generate electricity for its customers, but will continue to provide electric power
through its distribution system; and
WHEREAS, as a result of this deregulation, electricity will be purchased based on
market price and Exelon, the parent company of Commonwealth Edison, will no longer be the
sole supplier of electricity in Northern Illinois, resulting in new electricity suppliers being able
to compete against Exelon, and competitive market forces dictating the price of electricity;
and
WHEREAS, during fiscal year 2006, the Village of Elk Grove Village spent
approximately $200,000 on electricity for street lighting, water production and distribution and
wastewater treatment; and
WHEREAS, since Commonwealth Edison has had prices fixed for the last nine (9) years
by the Illinois Commerce Commission (ICC), which will end with deregulation, the cost of
electricity is expected to rise approximately 20% according to information received from
Commonwealth Edison; and
WHEREAS, municipalities across the State are now looking at ways to enter the market
to purchase electric power in order to mitigate some of the economic impact of these rising
rates, which, on a practical basis, can best be accomplished by using a third party who will
serve as a broker for the municipalities and has the knowledge and experience to seek bids
from the various electricity providers; and
WHEREAS, the Village of Elk Grove Village has selected the Northern Illinois
Municipal Electric Cooperative (NIMEC) to serve as the Village's broker relative to the
acquisition of electrical energy due to NIMEC'S municipal experience and the fact that
NIMEC is a municipal cooperative which will be pooling the energy needs of members of the
cooperative in order to secure more competitive pricing based on higher volumes than can be
provided individually to a single municipality; and
WHEREAS, the cost to join NIMEC is a one time fee of $100, with the amount of
compensation that NIMEC receives, if the Village chooses the NIMEC electricity supplier,
being build into the prices bid by the electricity supplier and equaling 1% of the cost per
kilowatt hour (as would be the case with any broker), so there will be no direct payments made
to NIMEC by the Village other than the one time fee; and
WHEREAS, due to the bidding procedures required, the Village Manager will need to
have the authority to sign a contract with the electricity provider which is deemed most
favorable for the Village within hours of the bids being received by NIMEC.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Board of Trustees of the
Village of Elk Grove Village, Counties of Cook and DuPage, Illinois:
Section 1. That the Northern Illinois Municipal Electric Cooperative (NIMEC) is hereby
appointed as the Village's broker for purposes of obtaining a supply of electricity for the
Village's municipal needs, and the Village Manager is hereby directed to take all actions
necessary to establish said broker relationship.
Section 2. That the Village Manager is authorized to discuss and negotiate energy rates
directly with suppliers in an effort to secure a lower energy cost for the Village of Elk Grove
Village.
Section 3. That in light of the time constraints applicable to the acceptance of a
competitive bid for a supply of electricity, once the bids are received by NIMEC, the Village
Manager is hereby authorized to sign the contract with the lowest bidder, provided the bid is at
a rate that is less than is being offered through Commonwealth Edison, with Village Staff
being hereby directed to place said contract on the first available Village Board regular
meeting following the execution thereof by the Village Manager, for ratification by the Village
Board.
Section 4. That this Resolution shall be in full force and effect from and after its passage
and approval according to law.
VOTE: AYES: 6 NAYS: 0 ABSENT: 0
PASSED this 14th day of November 2006
APPROVED this 14th day of November 2006
APPROVED:
Mayor Craie B. Johnson
Village of Elk Grove Village
ATTEST:
Ann I. Walsh, Villaee Clerk
ReSNaAEC