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Government

Lombard Village Board rejects electrical energy aggregation bids

LOMBARD – Acknowledging that all public bids received for the village's electrical energy aggregation program were higher than current rates, the Lombard Village Board of Trustees on April 3 voted unanimously to reject all potential contracts.

District 6 village trustee Bill Ware was not present for the vote.

Village staff recommended that the board reject the six public bids received, which were all higher than what residents currently pay through the program, Village Manager Scott Niehaus said.

In April 2012, Lombard voters approved a measure to allow the village to negotiate lower electrical rates, and the village subsequently approved a 24-month contract with First Energy at a rate of 4.64 center per kilowatt hour. The contract is set to expire in July.

In the first 15 months, the program saved a total of $3.36 million, about $246 per household, said Tim Sexton, Lombard's director of finance. At the time, the price was at an all-time low, but it's starting to climb, Sexton said.

The village will have an opportunity to request public bids again in May, when ComEd is also expected to release its updated rates, which have dropped in the past two years, Sexton said.

"We want to make sure we have a lot of flexibility for our citizens and we're not going to lock them into a rate that ComEd might beat in the future," Niehaus said. "The pricing we received today does not show any savings."

If the village does not accept a bid by June, every customer enrolled in the program will automatically be re-enrolled in ComEd, Niehaus said. Staff will continue to prepare updated information for residents during the bid process.

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