The Southern Illinois University Board of Trustees today approved authorization for the Edwardsville and Carbondale campuses to enter into a four-year agreement with MidAmerican Energy Company for the procurement of electricity. The board held its regularly scheduled session on the Edwardsville campus at the Morris University Center Conference Center.
In addition to the four-year contract, SIU will have six one-year renewal options with MidAmerican, based in Davenport, Iowa, to purchase electricity at future negotiated rates. The contract’s estimated 10-year cost is $137-million ($42-million for SIUE). The current 10-year contract expires at the close of 2016.
During the past eight years under a contract approved in 2006, the two campuses have purchased electricity through MidAmerican as a consortium with Eastern Illinois University, Illinois State University and Western Illinois University. The consortium has allowed the five institutions to obtain competitive, predictable prices for electricity.
The consortium monitors the retail market for annual electricity prices four years in advance. In order to have the ability to contract for favorable prices, which may develop for 2017, the consortium solicited proposals through ISU for a contract to begin January 1, 2015.
Among seven respondents, MidAmerican was chosen for its responsiveness, responsibility and price criteria.
The Board also approved a contract with Illinois Central School Bus of Channahon for bus services for the St. Clair County Head Start program. The contract will provide bus services to St. Clair Head Start for the period Nov. 1, 2014, through March 31, 2015. The University will reserve the right to extend the deal for three-consecutive school years, concluding in 2018.
The contract is valued at approximately $360,000 annually and is funded through a federal grant from the Department of Health and Human Services, the Administration for Children and Families Division.