City didn’t save money, it spent unnecessarily on electric aggregation
In response to an article in the MDH on Electrical aggregation in Morris:
The City of Morris failed to publicly bid for the best electrical rates. Proposals were only solicited to a select few electric providers, or brokers, in this case.
A consultant is not needed for this very simple process. Therefore, the thousands of taxpayer dollars spent (exact amount unknown at this time) on this consultant was yet another waste of taxpayer dollars.
Many businesses were at or below .0475 per kilowatt hour around the same time of this contract being signed. With the amount of megawatt usage in Morris, that is surely a big negotiating block, so the rate of .0543 could have easily been lowered.
The article is misleading. The city did not save residents a penny. Deregulation saved us money. So, in essence, the city hired a consultant, which was unnecessary, and went to a middleman (broker) instead of directly to the energy market and wasted more tax dollars. I would like to know who the broker/salesman was who landed this contract.
With Morris city government’s history, I wonder if that person may have been related to or known someone at city hall. Why else would they not go for public bid and allow the more than 40 companies out there to compete for our business?
Other municipalities have open enrollment. The city of Morris abused its power and automatically enrolled everyone without permission. The mayor inaccurately stated “that we voted for it.” Not true. The aggregation referendum allowed the city the opportunity to go with a third-party provider and to negotiate a price on behalf of all city residents, but the city, in an overreach of power, took it a step further and automatically enrolled everyone that was not already in a contract.
The city of Joliet had a program that had a deadline for its business community to register, not force them to a provider like the city of Morris did. As Paul Harvey would say… “The rest of the story.”