Joliet plans to reduce its electricity consumption at certain water treatment plants during peak summer hours and resell the power to generate revenue as part of a program offered by the utility operator.
Ken Mihelich, the city’s finance director, said the program could generate upwards of $40,000 over the next three years.
He said the city would likely cut usage at waste water treatment plants when they are informed that there is a high demand on electricity, such as a hot summer day when many people are running their air conditioners.
“They are paying us to shut down some things for a while,” Mihelich said.
The unused electricity would then be auctioned off.
Mihelich said the city would likely not change water treatment operations, but would identify waste water treatment activities that could be slowed down or stopped during high-demand hours.
The Demand Response program is offered by PJM Interconnection, an independent system operator in the ComEd coverage region. The city would work with Pasteris Energy and World Energy to auction the electricity and the brokers would receive a cut of the revenues, according to a city memo. The program would be free to the city.
The city worked with both Pasteris Energy and World Energy in the last two years to purchase natural gas and electricity via auction. Through the auction process, the city has saved $48,000 on natural gas costs and $265,000 on electricity costs, according to the city.
The Joliet City Council approved a measure to allow the city to work with the brokers at its Feb. 21 meeting. The issue was also discussed at the finance committee meeting.
This issue is unrelated to the electricity aggregation referendum that Joliet and other communities across the state will vote on during the March 20 election. If approved in a municipality, the local government would be authorized to join a consortium that could purchase electricity at a bulk rate.
Proponents said the move could save residents and small business owners about $150 a year compared to ComEd rates, which are set in part by how much the Illinois Power Agency has paid for the power.
Joliet hopes to join 22 other communities in Will and DuPage counties in the Will County Governmental League, which would be the largest buying group in Illinois.
