HomeMy WebLinkAbout04.30.12
CITY OF EVANSTON, ILLINOIS
SPECIAL CITY COUNCIL MEETING
Monday, April 30, 2012
6 p.m.
Council Chambers
Lorraine H. Morton Civic Center
2100 Ridge Avenue
Evanston, IL
ORDER OF BUSINESS
I. Roll Call – Begin with Alderman Burrus
II. Citizen Comment (10 minutes)
III. Community Choice Electricity Aggregation – Selection of Electric
Supplier, Agreement Term and Percentage of Renewable Energy
Staff recommends that City Council authorize the City Manager to execute
the Master Agreement to Provide Services to an Aggregated Group with
the pre-qualified Alternate Retail Electric Supplier (ARES) that provides
the most favorable price per kilowatt hour ($ / kWh) for the length of term
and renewable energy mix that the City Council determines to be the
most advantageous.
For Action
IV. Adjournment
Information is available about Evanston City Council meetings at:
www.cityofevanston.org/citycouncil. Questions can be directed to the City Manager’s Office at
847-866-2936. The City is committed to ensuring accessibility for all citizens. If an
accommodation is needed to participate in this meeting, please contact the City Manager’s Office
48 hours in advance so that arrangements can be made for the accommodation if possible.
1 of 3
For City Council meeting of April 30, 2012 Item III
Business of the City by Motion: Electric Supplier Agreement
For Action
To: Honorable Mayor and Members of the City Council
From: David Stoneback, Director of Utilities
Catherine Hurley, Sustainable Programs Coordinator
Subject: Community Choice Electricity Aggregation – Selection of Electric Supplier,
Agreement Term and Percentage of Renewable Energy (RFP 12-105)
Date: April 25, 2012
Recommended Action:
Staff recommends that City Council authorize the City Manager to execute the Master
Agreement to Provide Services to an Aggregated Group with the pre-qualified Alternate
Retail Electric Supplier (ARES) that provides the most favorable price per kilowatt hour
($ / kWh) for the length of term and renewable energy mix that the City Council
determines to be the most advantageous.
Contract Term:
Staff recommends that the term of the agreement be 24 months if the difference
between the 12 month and 24 month price is less than ten percent (10%).
Energy Mix:
Staff recommends that a minimum 75% renewable energy mix is selected since this
appears to be the only feasible, cost effective way to meet the City’s greenhouse gas
emissions reduction goal.
Summary:
Staff will be obtaining proposals from the three pre-qualified ARES on April 30, 2012 to
supply electricity to the Evanston Aggregated Group of residential and small commercial
customers that are eligible to participate in the program. Due to the volatility of the
energy market, suppliers will only hold their prices for 24 hours. Staff will be presenting
the details of the proposals received in a memorandum to the City Council that will be
distributed at the meeting.
Background:
Staff received four responses to their request for proposal for indicative pricing and
company qualifications (RFP 12-105) for Municipal Aggregation of Electric Supply for
residential and small commercial retail customers. Staff and members of the Utilities
Commission reviewed the responses and pre-qualified the following three ARES:
Memorandum
2 of 3
Supplier Address
Constellation NewEnergy, Inc. 550 W. Washington Blvd., Suite 300 Chicago, IL
60661
FirstEnergy Solutions 341 White Pond Drive, Akron OH 44320
MC Squared Energy Services, LLC 10 South Riverside, Suite 1800, Chicago, IL
60606
A summary of the average prices received for the indicative pricing is provided in Tables
1, 2 and 3. Average prices are presented across all contract terms and energy mix
options. In addition, staff has calculated the average price differential between the
contract terms and the energy mix options.
Table 1 – Summary of Average Prices
Energy Mix
Contract Term
12 month 24 month 36 month
Average Price $ per kWh
IL RPS Compliant (7%) $0.04410 $ 0.04711 $0.05297
25% Renewable Energy $0.04443 $ 0.04750 $0.05340
50% Renewable Energy $0.04481 $ 0.04789 $0.05384
75% Renewable Energy $0.04514 $ 0.04831 $0.05433
100% Renewable Energy $0.04549 $ 0.04870 $0.05477
Note: The current ComEd price to compare is $0.07733 per kWh.
Table 2 – Summary of Average Price Differential: Price Terms
Contract Term Option % Difference
12 to 24 month 7%
12 to 36 month 20%
Table 3 – Summary of Average Price Differential: Energy Mix
Renewable Energy
Option
% Difference from IL RPS
Compliant (7%)
25% 0.80%
50% 1.64%
75% 2.49%
100% 3.31%
Based on the indicative pricing received, staff will only be requesting pricing for the 12
and 24 month terms that have the renewable energy mix of the IL RPS Compliant (7%),
75% and 100%.
3 of 3