HomeMy WebLinkAboutMC Squared Energy Services LLC Dec. 2024-June 2025 Memorandum
To: Honorable Mayor and Members of the City Council
CC: Members of Administration and Public Works Committee
From: Cara Pratt, Sustainabilty and Resilence Coordinator
Subject: Approval of a Six Month Contract Extension with MC Squared Energy
Services LLC to Provide Services to an Aggregated Group
Date: September 23, 2024
Recommended Action:
Staff recommends that the City Council authorize the City Manager to execute a six-month
contract extension for the Extended Term Agreement Amendment No. 2 to the existing
Master Agreement to Provide Services to an Aggregated Group between the City of
Evanston and MC Squared Energy Services LLC.
Council Action:
For Action
Summary:
The Climate Action and Resilience Plan (CARP) calls for the City to leverage existing
programs, such as Electricity Aggregation, to achieve the City's goals better. The City's
Electricity 30-month a and 2012, since been in has Program Aggregation operation
agreement term with MC Squared Energy Services LLC has been in effect since July 2021.
The contract was initially set to expire at the end of December 2023, and the City extended
the term agreement until December 2024. Now, staff requests to extend the agreement for
six additional months until June 2025 to allocate appropriate time for the next procurement
process.
Under the existing contract, MC Squared offers a ComEd Price Match Offer to enrolled
customers. The contract extension will continue with the same ComEd price match, and all
enrolled Evanston accounts will continue to pay exactly the same price for electricity as they
would pay to ComEd. Furthermore, the program will continue to operate with an "opt-out"
structure, and communications will be mailed citywide to communicate the contract extension
if approved. Under the existing contract, MC Squared has paid the City of Evanston
$1,250,000 as the total Civic Grant Contribution during the contract term. Of the $1,250,000
received to date, the City has used $831,872 to purchase renewable energy credits (RECs)
on behalf of the enrolled Evanston accounts, and the remaining $418,128 went to the
Sustainability Fund. In addition to the original contract terms, the City expects to receive
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$100,000 in Civic Grant Contribution in early 2025 through Amendment No. 1 of the
agreement and, if approved, $50,000 in Civic Grant Contribution in late 2025 through
Amendment No. 2 of the agreement.
In the past, the Retail Electric Supplier provided an annual Net Civic Grant Contribution
payment equal to the aforementioned amounts minus the costs of RECs procured by the
Retail Electric Supplier under the REC Purchase Program. Staff expects all remaining Civic
Grant Contribution funding to be used to directly purchase RECs with no balance for the
Sustainability Fund. Staff, the Environment Board, and the Utilities Commission periodically
review and will continue to provide guidance on the purchase of RECs to achieve CARP
goals.
Legislative History:
On February 8, 2021, the City Council adopted Resolution 22-R-21, Authorizing the City
Manager to Enter into a Master Agreement to Provide Services to an Aggregated Group with
MC-Squared Energy Services, LLC. On September 11, 2023, the City Council authorized the
City Manager to execute a one-year contract extension for the Extended Term Agreement
Amendment No. 1 to the existing Master Agreement to Provide Services to an Aggregated
Group between the City of Evanston and MC Squared Energy Services LLC.
Attachments:
Aggregation Program Draft Amendment No. 2 with Exhibit A for 6 Month Term City of
Evanston dated Sept. 2024 MC2 ccs
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EXTENDED TERM AGREEMENT AMENDMENT NO. 2
This Extended Term Agreement Amendment No. 2 (hereinafter the “ETA No. 2”), is entered as of this 26th day of
September 2024 between the City of Evanston, Cook County, Illinois, an Illinois municipal corporation (hereinafter the
“City”) and MC Squared Energy Services, LLC (hereinafter the “Supplier”) (each a “Party” and collectively, the “Parties”).
WHEREAS, Supplier and City are the Parties to a Master Power Supply Agreement dated March 11, 2021 and amended on
September 12, 2023 (hereinafter the “MPSA” and ETA Amendment No. 1 which is hereby incorporated by reference).
NOW, THEREFORE, the Parties agree as follows:
1. The Parties agree to replace Exhibit A with Amended Exhibit A to reflect the mutually agreed extended term of six
(6) months.
2. The Parties agree that by executing this ETA Amendment No.2, the Extended Term will last until June 2025,
subject to future mutual extensions.
3. The Parties agree that Supplier has the right to conduct subsequent opt-out cycles to add eligible customer accounts
to Supplier Service and/or return eligible accounts to ComEd’s Tariffed Service during the term of the Agreement
twice annually traditionally in the spring and fall delivery periods. Supplier will provide at least thirty (30) days’
notice to the municipality prior to such events.
IN WITNESS WHEREOF, the Parties have duly executed this Agreement to be effective on the date first written above.
Supplier: MC Squared Energy Services, LLC Municipality: City of Evanston
Signed: Signed:
________________________________ ________________________________
Printed/Typed Name: Printed/Typed Name:
Charles C. Sutton__________________ ________________________________
Title: Title:
President_________________________ ________________________________
Date: ___________________________ Date: ___________________________
Attest: Attest:
________________________________ ____________________________________
Signed Signed
_________________________________ ____________________________________
Printed/Typed Name: Printed/Typed Name:
_________________________________ _____________________________________
Title: Title:
Docusign Envelope ID: 9AA837EA-D476-41A8-B4A0-9C0BC74A87EB
9/26/2024
Vice President, Sales and Marketing
Sharon Alegado
Luke Stowe
City Manager
Alexandra B. Ruggie
Corporation Counsel
09 / 27 / 2024
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AMENDED EXHIBIT A: (FOR COMED TARIFF PRICE MATCH
PROGRAM)
PRICE
Eligible Customers
Eligible Customers means residential and small commercial electricity customers receiving Retail Electric
Supply within the Aggregation Area who are eligible to participate in the Program pursuant to the
Aggregation Act and other requirements of law, including but not limited to 83 Ill. Admin. Code Part 470
and ComEd Rate GAP. Eligible Customers may be further classified as recipients of Retail Electric
Supply from Retail Electric Supplier or Tariff Service and by such standards as mutually agreed to by the
Retail Electric Supplier and the Government Aggregator and as carried out by the Retail Electric Supplier.
Except as otherwise required by the Aggregation Act or other requirements of law, Eligible Customers
includes all residential and small commercial customers within the Aggregation Area excluding: (1)
customers served by an ARES other than Retail Electric Supplier (other than the immediately previous
Retail Electric Supplier supplying the City’s Aggregation Program), including pending “with RES” status
as reported by ComEd; (2) customers served under ComEd’s Rate BESH, Rate RTOUPP, or Rider RRTP
supply service, (3) customers identified as PIPP or LIHEAP on the ComEd list ; and (4) customers enrolled
in a net metering program other than a Participating Customer.
Eligible Customers in the initial and subsequent opt-out cycles will be placed on Retail Electric Supply
service or Tariffed Service based on Retail Electric Supplier’s criteria and discretion including the
customer’s usage patterns and wholesale market conditions as determined by the Retail Electric Supplier.
Eligible Customers will be assessed the same Customer Class Price and will continue to receive monthly
invoice statements from ComEd without regard to whether they are served by Retail Electric Supplier or
on Utility Tariffed Service.
Eligible Customer Class Price:
Variable rate equal to the ComEd published tariff supply service costs including the Purchased Electricity
Charges (PEC), Transmission Service Charges (TSC) and the Purchased Electricity Adjustment (PEA) for
each applicable month for the Term of the Agreement.
Customers on Tariffed Service will receive supply service from ComEd pursuant to the terms of ComEd’s
Rate BES.
Termination Fee for Withdrawing Customers:
No Earl y Termination Fee - $0.00 (Zero) per utility account.
Deliver y Term(s):
Six (6) Months – December 2024 to June 2025
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CIVIC GRANT AND REC PURCHASE PROGRAM (SPECIAL SERVICES)
Civic Grant Contribution:
Retail Electric Supplier agrees to provide an annual Net Civic Grant Contribution payment equal to the greater
of (i) $50,000 minus the costs of RECs procured by Retail Electric Supplier under the REC Purchase Program
identified below and (ii) $0.00 to the City for each Deliver y Term within ninety (90) calendar da ys after the
conclusion of such Delivery Term.
Notwithstanding the preceding, if the Agreement is terminated pursuant to Section 6.2.2 by City or 3.3.1 by
either Part y during a Deliver y Term, Retail Electric Supplier’s shall be obligated to provide a Net Prorated
Civic Grant Contribution payment to City within ninety (90) days of the last month of electricity delivery prior
to termination. The Net Prorated Civic Grant Contribution shall be calculated as follows:
NPCGC = (CGC x PM/TM) - RECC
Where:
• NPCGC is the Net Prorated Civic Grant Contribution
• CGC is $50,000
• PM is the number of months from the beginning of Delivery Term through and including the last month
with deliveries b y Retail Electric Supplier prior to termination
• TM is the total number of months in Delivery Term
• RECC is the total costs incurred and documented by Retail Electric Supplier under the REC Purchase
Program during that term inated Delivery Term
Notwithstanding an y other provision in this Agreement, Retail Electric Supplier may terminate in its sole
discretion, or mutuall y agree with Cit y to adjust, the monthly Civic Contribution payment to the City if the
number of accounts that Retail Electric Supplier serves under this agreement falls below the higher of 8,500
accounts or 25% of the total number of accounts reported by ComEd pursuant to Rate GAP, because it would
not be financiall y viable for Retail Electric Supplier to continue funding below such number.
REC Purchase Program (Special Services):
At the sole direction of the City, Retail Electric Supplier will acquire and retire voluntar y Green-E® Certified
Renewable Energy Certificates (RECs) on behalf of the Government Aggregator that meet the Sustainability
goals and objectives of the Cit y including but not limited to Wind and Solar generation RECs. Retail Electric
Supplier shall from time to time and upon reasonable request by the City provide the City with information on
the prevailing market-based rates for the RECs by generation type, location and vintage on at least a quarterly
basis or as requested b y the City at an y time during the Deliver y Term. Prior to Retail Electric Supplier
purchasing an y RECs on behalf of the Cit y, the City will provide a written request (via email) to Retail Electric
Supplier authorizing each REC purchase transaction. Such authorization shall document the City’s request to
acquire the RECs. Retail Electric Supplier will provide written confirmation (via email) of each REC purchase
and will provide documentation of the actual invoices paid b y Retail Electric Supplier to acquire the RECs from
third-part y REC providers.
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The funds to acquire an y authorized REC purchases on behalf of the Cit y during the Delivery Term will be
deducted from the Civic Grant Contribution amount identified above. In no case shall Retail Electric Supplier
be obligated to purchase RECs during a Deliver y Term that, in aggregate, would exceed the Civic Grant
Contribution amount identified above. To the extent that the City does not request or authorize an y REC
purchases during the Delivery Term, Retail Electric Supplier shall provide the Civic Grant Contribution
payment as outlined above.
Retail Electric Supplier: Government Aggregator:
MC Squared Energy Services, LLC City of Evanston
Signed: Signed:
Printed/Typed Name: Printed/Typed Name:
Title: Title:
Date: Date:
Docusign Envelope ID: 9AA837EA-D476-41A8-B4A0-9C0BC74A87EB
President
Charles C. Sutton
9/26/2024
Luke Stowe
City Manager
Approved as to form:
Alexandra B. Ruggie
Corporation Counsel
09 / 27 / 2024
Doc ID: 46f2b47a91abec9728d2d5f37d6374671ee77d27
Contract Extension with MC Squared Energy Services LLC to...
Approval_of..._Servic.pdf and 1 other
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MM / DD / YYYY
Signed
09 / 26 / 2024
11:54:56 UTC-5
Sent for signature to Alexandra Ruggie
(aruggie@cityofevanston.org) and Luke Stowe
(lstowe@cityofevanston.org) from lthomas@cityofevanston.org
IP: 66.158.65.76
09 / 26 / 2024
11:57:47 UTC-5
Viewed by Alexandra Ruggie (aruggie@cityofevanston.org)
IP: 66.158.65.76
09 / 26 / 2024
11:58:06 UTC-5
Signed by Alexandra Ruggie (aruggie@cityofevanston.org)
IP: 66.158.65.76
09 / 27 / 2024
13:07:08 UTC-5
Viewed by Luke Stowe (lstowe@cityofevanston.org)
IP: 66.158.65.76
09 / 27 / 2024
13:07:26 UTC-5
Signed by Luke Stowe (lstowe@cityofevanston.org)
IP: 66.158.65.76
The document has been completed.09 / 27 / 2024
13:07:26 UTC-5