Iroquois County approves 36-month electricity contract with AEP using Day Ahead Index Adder

Iroquois County approved a 36-month electricity contract with AEP Energy using a Day Ahead Index Adder at $0.004100, a move the board said balances price opportunity against market volatility. The motion, brought forward by the Management Services Committee, passed by roll-call vote at the May 12 recessed session.

Chris Landstrom of Twin City Energy presented multiple competitive bids from suppliers including Homefield Energy, AEP Energy, Constellation and IGS Energy and told the committee it should “select the 36-month or 48-month term All-In Commodity Rate or Day Ahead Index Adder.” Management Chair Jamie Bakken said the committee followed Landstrom’s recommendation and selected the Day Ahead Index Adder option for a 36-month term. The full board approved the contract and authorized the chairman, vice chairman and vice chairman of the Management Committee as the points of contact to confirm the rate if a favorable buying opportunity presents itself.

The committee record shows the current contract had been a three-year term that expired this month, and Landstrom cautioned rates change daily; the committee therefore also authorized requesting updated rates at specific months if a better opportunity to purchase appears. The decision followed an explicit motion to accept the variable-rate recommendation for a 36-month term that the committee previously passed.

The electricity contract action was recorded in the meeting roll call and will be reflected in upcoming county procurement records.