The Southern Illinois University Board of Trustees recently approved authorization for the Edwardsville and Carbondale campuses to enter into a four-year agreement with MidAmerican Energy Company for the procurement of electricity.
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, SIU said.
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 Jan. 1, 2015.
SIU said that among seven respondents, MidAmerican was chosen for its responsiveness, responsibility and price criteria.