The city of Galesburg has a new energy consultant – and a new electricity supplier for city-owned properties that’s expected to save tens of thousands of dollars in the coming years.
Since 2010, the city had been using Texas-based DaCott Energy.
But on the recommendation of City Manager Eric Hanson, the city council on Monday approved switching to Stone River Group to negotiate energy agreements with suppliers.
Hanson said Stone River Group is based in central Illinois and he’s worked with the company before.
“They oversee one of the largest municipal aggregation programs in the state, especially in central Illinois, representing over 60 communities in central Illinois,” he said.
The council also approved Direct Energy as the new electricity supplier for city-owned properties, based on Stone River Group’s recommendation.
Hanson said the three-year contract beginning in October is expected to save around $65,000, based on current rates. In addition, it will fix the rate for the length of the contract.
“To put this in perspective, this is at or just below our current rates. So we are essentially locking in, through 2027, no increases in our power expenses for the city,” he said.
Hanson there is some risk involved, in that the city is locked into this rate even if the market rate goes down. But he said Ameren rate is currently a full cent and a half higher per kilowatt than the negotiated rate.
Also at Monday’s meeting, the council approved an agreement with Davis and Campbell LLC for general legal services for the city. Through the agreement, the firm will staff the city attorney’s office five days a week with services billed hourly. Galesburg attorney Daniel Alcorn will be assigned as lead counsel.
The James Kelly Law Firm had provided legal services for the previous year, with two days a week in the city attorney’s office. Hanson said the main attorney working with the city from that firm moved out of state.
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