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CITY OF WEST CHICAGO

                        INFRASTRUCTURE COMMITTEE
                        AGENDA ITEM SUMMARY
ITEM TITLE:
                                             AGENDA ITEM NUMBER: _______________
      AFTER THE FACT APPROVAL OF CITY
                                                            FILE NUMBER: _______________
   ADMINISTRATOR'S EXECUTION OF ONE YEAR
 CONTRACT WITH DYNEGY ENERGY SERVICES, LLC  COMMITTEE AGENDA DATE: April 3, 2025
 FOR THE SUPPLY OF ELECTRICITY, JUNE 1, 2025 –   COUNCIL AGENDA DATE: April 7, 2025
             MAY 31, 2026


STAFF REVIEW: Mehul T. Patel, P.E., CFM – Director of Public Works      SIGNATURE__________________________


APPROVED BY CITY ADMINISTRATOR:  Michael L. Guttman            SIGNATURE__________________________


ITEM SUMMARY:

Since January 2007, as a result of the electric utility deregulation law passed by the State of Illinois in
1997, the City of West Chicago has contracted for the supply of electricity from a third party supplier for
electric to be supplied to the City's Water Treatment Plant, all Well Stations, and all Sanitary Lift Stations.
The distribution of electric continues to be provided by ComEd.

Working with David Hoover, who formed a cooperative known as the Northern Illinois Municipal Electric
Cooperative (NIMEC) that represents over 30 municipalities, alternative pricing is obtained via
competitive bid from four third party electric suppliers. In the past, the competitive bids were then
compared with ComEd’s rates to determine which pricing yields the most significant savings for the City.
Now, however, ComEd no longer offers fixed rates for medium and large accounts like ours. Therefore,
the City is forced to seek competitive bids or pay ComEd's floating rate, which is not recommended, as
the floating rates are inflated and change hourly.

On February 17, 2025, City Council approved Resolution No. 25-R-0011 authorizing the City's
participation in NIMEC and authorizing the City Administrator to approve a contract with the lowest cost
electricity provider. On March 10, 2025, NIMEC obtained bids from four suppliers (i.e., AEP, Dynegy,
NRG, and Constellation). Dynegy Energy Services won the bid and on Tuesday, March 11, 2025, the
City Administrator executed a one year contract (June 2025 thru May 2026) with Dynegy Energy for
0.07877 $/kWh for contract year one from June 1, 2025, to May 31, 2025. Historically, the City has signed
a two-year or three-year contract but staff based on various parameters made a recommendation to sign
a one year contract. The existing contract expires on May 31, 2024, and the City's current rate is
$0.05889 $/kWh. Under the new contract, the City will be paying approximately 33.8% more for energy
than the previous contract. The increase is due to the energy shortage and market uncertainty caused by
the tariff implementation.

ACTIONS PROPOSED:

City Council approval of the City Administrator's execution of a one-year contract with Dynegy Energy
Services, LLC for the supply of electricity for the City's Water Treatment Plant, all Well Stations, and all
Sanitary Lift Stations.

COMMITTEE RECOMMENDATION:

The Infrastructure Committee voted 6-0 for approval.