In September 2019, the Village conducted a one year trial for a Renewable Energy Electric Aggregation Program. The program provides Renewable Energy Credits (RECs) sourced from Wind power generators in the Midwest. The Village purchased RECs to cover 100% of power purchased for all Village Customers. This reduced Greenhouse Gas Emissions equivalent to 369,278,395 miles driven by a passenger vehicle; or likewise, Carbon emissions equivalent to 163,978,334 pounds of coal burned. The current program expires at the December 2020 meter cycle dates; to renew, a contract would need to be executed at this time to achieve the 70 to 80-day regulatory process for continuation.
Under this program, residents and small commercial accounts will receive the benefit of renewable, i.e., “green” energy. The Renewable Energy Aggregation Program provides RECs for the entire Arlington Heights Aggregation Community at zero added cost to the ComEd rate and zero cost to the Village, enabling the Village to be certified as a US EPA Green Power Community. It addresses one of the Board’s Strategic Priorities – explore new sustainability initiatives – and achieves an objective of the Metropolitan Mayors Caucus Greenest Region Compact which the Village adopted in 2007. The most efficient Village customers have their power provider switched to the chosen green power provider, and the remainder will remain with ComEd/Exelon. All customers will pay the same rates as ComEd customers. Customers who are chosen to switch to the green power provider are given the opportunity to opt out of the program, if they choose. The savings generated from the efficient customers are used to purchase the RECs and fund the civic contribution.
Under the trial program, the Village received RECs for 100% renewable energy and received a civic contribution of $174,963 to be applied towards green projects in the Village. Those projects are currently on hold given the Covid-19 pandemic and related budgetary challenges, but the funds are still available for use. Staff sought bids once again for this program, enabling us to continue to receive a civic contribution and for electric customers to continue to receive RECS for 100% renewable energy. While there were some roll out difficulties last year, Staff believes that the benefits outweigh the challenges. Staff will work with the provider, and the Village’s energy consultant, NIMEC, to mitigate challenges with this year’s program. The Village received the following bids:
Annual Civic Contribution*
100% RECs
Eligo Energy ** $254,957
MC Squared Energy Services $150,000
*All provider reserve the right to adjust or terminate the civic agreement if less than 20% of customers remain on the plan
**Eligo retains option to move up to 5% of accounts (with notice to residents) every six months
Even though Eligo is proposing a larger civic incentive, Staff is recommending that MC Squared be chosen as the provider for this contract. MC2 has an excellent five star rating in the industry and references indicate that they do an excellent job with customer service and implementation. In order to further reduce implementation issues, Staff also believes entering into a 3 year contract is advised. The civic contributions over three years would total $450,000 when you include the additional $90,000 of initial civic contributions they are looking to include. As with the last time, implementation requires a process that follows several regulatory procedures. Once the Village contracts to re-establish the program with a supplier, the coordination with ComEd takes approximately 70-80 days. The program would begin at December 2020 meter-reading cycles. Staff will be doing public outreach on this effort so that residents understand the program.
RECOMMENDATION
It is recommended that the Village Board accept the proposal from MC Squared to establish a Renewable Energy Aggregation program for a 36 month term, which will provide for the Village to receive 100% RECs for the program term and a Civic Contribution in the amount of $450,000 and to authorize the Village Manager to sign the contract.