Samantha Newburn
Effingham Daily News
EFFINGHAM —
To find the best electricity rates possible, Effingham City Council Tuesday approved a resolution to use a consulting firm that will help find a source to supply electricity in bulk to residences and small businesses.
Good Energy LP will be used as the go-between the city and electricity providers to help let bids, as well as guide city officials and staff through the referendum process.
If Effingham residents approve the electricity referendum on the Nov. 6 ballot, the city will be allowed to implement a plan to take bids and negotiate electric rates with suppliers to find the best rate for users.
However, Good Energy is being used now to start the process and help the city because the election is only a few months away.
The charge for the third-party consultant will be built into the new electric rates. If the referendum doesn’t pass, there’s still no charge to the city, according to the negotiated contract.
City Administrator Jim Arndt represented Effingham at a recent meeting with other municipalities such as Montrose, Teutopolis, Mason, Charleston, Mattoon, Ashmore and Paris.
City officials reviewed letters of interest from potential consulting firms, and after narrowing them down to the top three, each of them were interviewed by officials.
Even though municipalities can band together to find a cheap bulk rate, each consulting contract is the city’s own, and each municipality can choose any consultant it wishes. Unless a governmental agreement is involved, cities are acting in their own interest.
Arndt said Good Energy provided good references, and on average, gave 51 communities a rate of about 4.05 cents per kilowatt hour after the March election.
