County board approves 36‑month AEP variable electricity contract

The Iroquois County Board voted to confirm a 36‑month variable electricity supply contract with AEP on Tuesday, approving a day‑ahead index product with a specified adder.

The decision followed a recommendation from the management services committee, which reviewed bids from multiple suppliers and recommended a variable (day‑ahead index) product to capture short‑term market savings. A committee representative said the 12‑month historical day‑ahead index average has outperformed fixed supply rates and recommended the board allow a designated official to override the index and lock fixed months if market conditions warrant.

Chris (committee representative) explained the product and its mechanics, saying the day‑ahead index historical average for the prior 12 months was about 0.0437¢ per kilowatt‑hour and that the product can be overridden by locking a fixed supply price for selected peak months. The board discussed establishing a tiered authority so a second official could act if the primary designee was unavailable.

A motion to confirm the 36‑month AEP variable rate product at the reported index and terms was moved, seconded and carried by roll call. The management committee had earlier opened bids from Twin City Energy, AEP, Constellation and IGS and recommended the 36‑month day‑ahead index option with the capacity charge passed through to avoid locking in volatile capacity costs.

The contract includes the option for the chairman (or a designee) to lock fixed months if market conditions recommend it; the board asked staff to provide contact names and the executed contract to committee staff so the override protocol can be implemented.

The board did not discuss additional financial details such as the county's expected annual dollar savings in the public record beyond the index comparisons provided by the committee.