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Village Vision News

Trustees pass resolution on bids for village’s electrical supply service

Thursday, September 12, 2013

Village Administrator Mike Miller told the board at the Aug. 19 board meeting that he had in recent weeks met with a representative from Good Energy Consultants to discuss electrical supply markets. Miller learned that rates continue at multi-year lows, but future pricing will likely be affected by new regulatory requirements being added to the system.

The village’s current service agreement will expire in June 2014, Miller said. Good Energy’s recommendation was for the village to extend its current agreement or to possibly renew the agreement earlier than planned with an alternate retail electrical supplier. Doing so, Miller said, would put Forsyth in the company of other Illinois municipalities in the southern part of the state, which will increase bargaining power to possibly secure an attractive rate.

It’s a practice known as municipal aggregation, which according to the Citizens Utility Board, allows for communities such as Forsyth to use the collective bargaining power of residents to negotiate for lower power prices.

The village is obligated by law to negotiate the price of power from an alternative supplier (other than Ameren in this part of the state) if it chooses to purchase electricity on behalf of its residential and small-business customers located within the village’s borders.

According to Good Energy’s website, the number of municipalities and counties that came together to successfully pass the Opt-Out legislation in 2012 is 111. The law empowers these communities’ leaders “to purchase electricity on behalf of their residents and small businesses. In partnership with Good Energy, an electricity supply contract was subsequently negotiated to extend through June 2014. As a result, these communities will save as much as 32 percent on the supply portion of their electricity bills, literally saving millions of dollars which will, in large part, be reinvested into local economies.”

Miller asked trustees to authorize the mayor or himself to execute and deliver a service agreement.

“Give the mayor and I authority to open it up and extend the agreement, to either extend (the current agreement) and stay with the contractor we have,” Miller said, or to seek new bids.

Officially, Resolution No. 13-03 reads as follows: “Authorizing Execution of A Service Agreement With The Lowest Responsible Bidder For The Supply Of Electricity For Residential and Small Commercial Retail Customers Who Do Not Opt Out Of Such A Program.”

Trustee Steve Hubbard moved, and Trustee Bob Rasho seconded.

Before the call of the roll, Trustee Bob Gruenewald asked if such a resolution was related to his employer, Ameren, suggesting that he would abstain. Miller assured him that it was not a conflict. The vote proceeded, and the motion passed with all present voting in favor of the resolution.

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