Yorkville is looking to lower its own power costs and may reinstate an electrical aggregation program for customers in the city.
Aldermen recently authorized Progressive Energy Group to assist the city in evaluating cost-saving options for electricity for its municipal facilities such as the water treatment plant.
The resolution gives the city administrator authority to sign a contract with the lowest-cost electric supplier based on a closed auction process.
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The Aurora-based energy broker will also explore the feasibility of a new aggregation program for residents and small businesses that would feature renewable power. Progressive Energy Group has assisted the city with alternate suppliers for its natural gas accounts, city officials said.
Municipal aggregation was made possible years ago and involves a city purchasing electricity in bulk from an alternative supplier to get the best rates on behalf of customers.
Yorkville first implemented aggregated electricity in the summer of 2012, Yorkville Finance Director Rob Fredrickson said in a report to aldermen.
“Over the course of the initial two-year aggregation term, more than 4,800 residential and small business accounts were enrolled in the program, saving an average of $429 per household or $1.98 million citywide,” he said.
Customers realized savings over the two years while ComEd was locked into a long-term electricity supply rate, so as electricity supply rates fell, municipalities were able to secure much lower rates through aggregation, the finance director said.
The city went out to bid to renew the aggregation program over the last several years. However, the City Council rejected those bids because they did not yield any significant savings in comparison to the rates offered by ComEd, city officials said.
Progressive Energy Group will explore a new aggregation program based on renewable power. There would be guarantees that customers would not pay more than the ComEd rate, officials said.
The city can also move customers back to ComEd if the alternate supplier’s rates are not lower.
Yorkville City Administrator Bart Olson said the goal of the program is to get the best prices overall for electricity.
“The Progressive Energy Group’s services to the city will involve trying to competitively price electric supply rates for the city’s various electric accounts,” Olson said. “This pricing strategy should result in savings of taxpayer dollars. On a parallel path, the group will take residential electric accounts to market with the hope of providing savings to the city as a whole. The aggregation program will require at least one more City Council discussion and vote at a future meeting.”
Linda Girardi is a freelance reporter for The Beacon-News.