City Offers More Details on Electricity Aggregation Referendum

The city plans to move quickly if Darien residents approve a referendum on the March 20 ballot allowing the city to on their behalf. 

Two required public hearings could be scheduled for as soon as the days after the primary, which happens on a Tuesday, City Administrator Bryon Vana said at Monday's meeting. 

Residents in some municipalities are collectively saving as much as $100,000 a month once they make a deal for bulk power discounts, Assistant City Administrator Scott Coren said.

“If we wait a couple of months, it could be quite a bit of money in people’s pockets,” he said. 

The village of Oak Brook, in partnership with Grayslake and Lincolnwood, secured an electricity rate of 5.52 cents per kilowatt in October — a 30 percent savings. The new rate took effect in January. Darien residents currently pay about 7 cents per kilowatt, Mayor Kathy Weaver said.

There are three routes Darien could pursue to secure its rates, some of which have costs associated with them, Coren said.

The city itself could select an individual supplier rather than going out for bids. It could also go with a broker or consortium, such as the Northern Illinois Municipal Electric Collaborative (NIMEC). There could be higher consulting fees with this approach, but Coren said NIMEC is the most experienced broker in the area. 

Darien could also hire an independent consultant, but Coren said not many exist. Still, such a firm would be working solely for Darien’s benefit.

Part of the challenge is the city doesn’t know exactly how much it would have to spend on a consultant or broker.

“We don’t know if paying out $10,000 would save $100,000 in fees,” Vana said.

Before the public hearings, City Council will have to approve an ordinance authorizing the process. 

About 150 other Illinois municipalities are posing similar questions on the March ballot, including Lemont, Romeoville and Plainfield.