Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Energy Procurement topic
No spam. Unsubscribe anytime.
District 88 staff outline electricity procurement strategy amid rising capacity charges
Summary
District staff told the board the district uses about 11 million kilowatt-hours annually and plans short-term indexed supply contracts, demand-response participation with CPOWER, and to explore community solar and a ComEd carbon-offset credit to reduce rising capacity-related costs.
District 88 staff told the Board of Education the district’s annual electricity usage is about 11,000,000 kilowatt-hours and that electricity costs account for roughly $1.3 million annually, or about 16% of the district’s operations and maintenance budget.
A district staff member leading the presentation said the district is monitoring energy markets with consultant Scott Pellock of Intel Energy and intends to seek index-rate pricing and short-term contracts to allow rapid lock-in when pricing triggers are favorable. “We will be seeking an index rate pricing that will allow us to secure some pricing with a designated vendor for a short term while we monitor the market with set pricing triggers,” the staff member said. The staff member noted district practice is to buy in blocks to avoid locking all supply at once.
Staff explained the district’s monthly bills have two parts: an energy component (about 60% of the total) and multiple sub-rates that can include transmission, capacity, distribution and renewable compliance charges. The staff member said capacity charges administered by the regional grid operator, PJM Interconnection, are expected to increase significantly from June 2025 through May 2026 and remain elevated for two to three years. The district is attempting to reduce those capacity charges through a demand-response agreement with CPOWER, which the staff said runs through March 2028.
The staff member also described a forthcoming ComEd carbon-offset credit that will appear as a credit through April and said the district is exploring community solar contracts — where the district would contract with off-site solar farms rather than put panels on district property — as a potential no-cost way to capture savings. The staff member cautioned the community solar option was early-stage and the district would investigate details before committing.
The board had no formal action on the item; the presentation described a procurement strategy and noted staff will lock in favorable supply on short notice and bring the final contract to the board at the next meeting for retroactive approval if necessary.
