ROCHELLE CITY COUNCIL
Monday, July 30, 2018 at 6:00 p.m.
City of Rochelle Council Chambers
420 North 6th Street, Rochelle, IL 61068
I. CALL TO ORDER:
· Pledge to the Flag
II. ROLL CALL:
III. PUBLIC COMMENTARY:
IV. BUSINESS ITEMS:
1) Amendment to Power Purchase Agreement between the City of Rochelle and NextEra Energy Marketing, LLC
The Council Meeting will be broadcast live on Facebook
Agenda Item #1 - Amendment to Power Purchase Agreement with NextEra Energy Marketing, LLC
Staff Contact: Jeff Fiegenschuh, City Manager & Jason Bird, Superintendent of Electric Operations
Last year the City Council authorized the City Manager to execute a power purchase agreement with Nextera Energy for electric usage above our 30 Megawatt baseload with Prairie State Generating Company. The contract is a three-year contract that went into effect June 1, 2018. At the time of the contract execution, the City was able to lock in rates of $29.40 a Megawatt hour, which was well below the previous contract of $44 a Megawatt hour price.
Since the contract execution, power prices have continued to decrease. At the recent APPA conference, Jason and I met with our Nextera representative about extending our contract to lock in the prices for a longer term. Currently, the prices are approximately $28.55 a Megawatt hour, which is slightly lower than our three-year rate. Staff would like authorization to work with Nextera to extend the contract for up to 8 additional years at the lower price. This will guarantee our customers receive a lower energy price for all power over 30 Megawatts.
Recommendation: Authorize the City Manager to execute a new agreement with Nextera Energy to extend the power purchase agreement for up to an additional 8 years.