Village OKs Plan to Seek Lower Municipal Power Rates

Trustees on Wednesday signed off on a plan that could secure lower municipal electric rates for the village.

Board members voted unanimously to allow the Northern Illinois Electric Cooperative (NIMEC) to act as a broker by soliciting bids from alternative power providers. The move could help the village snag lower rates than those offered by current provider Exelon, the parent company of ComEd.

The plan is not related to a to seek lower rates for residential customers within the village, Mayor John Noak noted.

“This has nothing to do with the residential aggregation process,” Noak said Wednesday. In March, whether Romeoville should join other Will County Governmental League communities to try to secure lower residential rates from ComEd competitors.

Under the resolution approved Wednesday, NIMEC would seek bids for a one-year contract to provide municipal power, including electricity for the village’s water and sewer facilities, Finance Director Kirk Openchowski said.

The deregulation of ComEd means the Exelon company is no longer the sole power provider in Northern Illinois. That has caused rates to become more competitive, according to Openchowski.

“Rates are on a downward trend,” he said. For that reason, he recommended the village seek a one-year contract as opposed to a three-year deal. Currently, the village is under a three-year pact with Exelon, which is set to expire May 30.

Village Manager Steve Gulden admitted there is some risk involved in inking a one-year contract, since rates could go back up.

However, he said, “If the rates go down, we’re stuck at [the higher] rate for three years.”

Under the resolution approved Wednesdays, Gulden will have the authorization to sign a contract on the village’s behalf if NIMEC is able to secure rates that are lower than what ComEd offers.

According to Openchowski, if the village is able to lock in rates that are 10 to 15 percent lower than the current level, it will save $125,000 to $190,000 per year. 

State funding update

In other financial news, trustee Linda Palmiter updated fellow board members on the current state funding situation.

Currently, Illinois is three months and $731,000 behind on payments it owes to the village, Palmiter noted.