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Energy contract change leaves board budgeting for higher electricity costs; LED retrofit estimated at $65,000
Summary
Staff told the board that a county energy contract shift removed a fixed energy rate and exposed the agency to market kilowatt-hour prices (recently 2¢–10¢), prompting plans to budget higher energy costs; the board also discussed a possible LED conversion for building fixtures, with a preliminary estimate of about $65,000.
Staff told the board McHenry County’s energy contract renewal removed the fixed energy-rate component the agency had relied on for eight years. The presenter said the agency will now pay market energy rates for the next four years and illustrated how monthly costs can swing: under the fixed-rate arrangement a peak monthly energy bill would have been about $1,900; at a higher market rate that peak month could rise to roughly $3,400.
“Previously we were paying 5 cents a kilowatt-hour,” the presenter said. “In December we were at 2 cents a kilowatt-hour and in January we were at 10 cents a kilowatt-hour.” They cautioned the board that the change could produce large month-to-month swings and that staff had not been at the negotiation table for the county contract.
The building-and-grounds discussion flagged an estimate of about $65,000 to replace fixtures and convert lighting to LED across agency-controlled spaces, a multi-year and potentially grant-funded effort. Board members noted that LED conversion is not limited to bulb swaps — many fixtures and ballasts would require replacement — and that HVAC usage is the dominant driver of seasonal energy costs. The board discussed phasing the LED work (25% increments) or seeking grant support and whether county-wide procurement or contractor-sharing with other county buildings is possible.
Members also raised the possibility of stabilizing costs through on-site solar, shifting some energy costs in future tenant lease renewals, and prioritizing HVAC sensor upgrades to capture greater savings from reduced heating and cooling loads.
Ending: Staff said they will budget more for energy in FY27, obtain quotes for HVAC sensors, and continue searching for grant or procurement options to phase an LED conversion; they will seek legal or facilities guidance on whether the agency can exit or alter the county contract.
