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HomeMy WebLinkAboutContract - MC Squared - Community Choice Electricity Aggregation (RFP #25-62) 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 Contract with MC Squared for Community Choice Electricity Aggregation (RFP 25-62) Date: January 12, 2026 Recommended Action: Staff recommends that the City Council authorize the City Manager to execute a contract with MC Squared for Community Choice Electricity Aggregation. Funding Source: N/A CARP: Renewable Energy 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 better achieve the City's goals. The City's Electricity Aggregation Program has been in operation since 2012. An initial 30-month agreement with MC Squared Energy Services LLC has been in effect since July 2021, and was extended for one year, then for six months, and finally for an additional year in June 2025. Two firms submitted proposals: Table 1. Firms Firm Address MC Squared Energy Services, LLC 500 W. Madison St., Suite 1470, Chicago, IL, 60661 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d Vistra Corp (Dynegy Energy Services) 168 E Market Street, Akron, OH, 44308 Proposals were reviewed by: • Cara Pratt, Chief Sustainability and Resilience Officer • Kirsten Drehobl Vega, Sustainability and Resilience Coordinator • Cheryl Stuart, Purchasing Specialist After evaluating each proposal, the Committee assigned the following scores to each firm: Table 2. Proposal Evaluations Alternative Retail Electricity Service Provider Qualifications and Expertise Project Approach Project Team Price Organization and Completeness of Proposal Willingness to Execute the City of Evanston’s Professional Services Agreement M/W/D/EBE Total Score MC Squared 15 20 10 13.5 8.5 8 8 83 Dynegy 12.5 3.5 7 0 0 7 7 37 The City requested that responders submit pricing for Fixed Pricing, ComEd Price Match (Partial Load), and ComEd Price Match (Full Load). MC Squared was the only firm to submit pricing. Table 3. Price Options Firm Fixed Price ($/MWh) 12 months Fixed Price ($/MWh) 24 months Fixed Price ($/MWh) 36 months Partial Load-12 months Partial Load- 24 months Partial Load- 36 months Full Load- 12 months Full Load- 24 months Full Load- 36 months MC Squared $105.50 $107.50 No bid $150,000 annual $150,000 annual, $240,000 total $150,000 annual, $450,000 total No bid No bid No bid Staff recommends a 36-month contract beginning in June 2026, with ComEd Price Match for Partial Load, with MC Squared. MC Squared offers enrolled customers a ComEd Price Match Offer. 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. The City expects to receive $150,000 in a Civic Grant Contribution annually. Historically, the City has used the Civic Grant contributions to purchase renewable energy credits (RECs) on behalf of the enrolled Evanston accounts. To date, the City has Page 2 of 10 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d used $982,246.8 of the $1,350,000 in Civic Grant Contributions to purchase RECs, and the remaining $418,128 has been allocated to the Sustainability Fund. Page 3 of 10 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 18 Revised 06-26-2025 Price/Cost Forms Fixed Price Proposal Bidder Name: ______________________________________ Date Submitted: ____________________________________________ Authorized Representative: ___________________________ Fixed Price Proposals: Bidders are to indicate the Fixed Price at which it will provide energy supply, program management an d other services under the Power Supply Agreements with the City Option Description Fixed Price ($/MWh) Fixed Price For RFP Response: A full-requirements, fixed-price energy supply price for all eligible customers that includes all charges related to energy commodity supply as well as program outreach and management. If Bidder is Selected: City staff will recommend that the City Council execute a contract with the ARES at its next scheduled meeting 12 Months: 24 Months: 36 Months: MC Squared Energy Services, LLC December 23, 2025 Charles C. Sutton Attachment 1 $107.50 $105.50 No bid Pa g e 4 o f 1 0 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 19 Revised 06-26-2025 ComEd Price Match Proposal (Partial Load) Bidder Name: ______________________________________ Date Submitted: ____________________________________________ Authorized Representative: ___________________________ ComEd Price Match Proposal (Partial Load): Bidders are to indicate whether they can deliver energy supply and program management services to a portion of Eligible Members at a price that matched exactly the monthly ComEd Price to Compare to a subset of eligible accounts to provide energy supply, and provide a municipal contribution to the City Option Description Confirmation of ability to Match ComEd Monthly Rate (Y/N) Annual Municipal Contribution ($) ComEd Price Match For RFP Response: A full-requirements variable-price energy supply for selected eligible Members on an opt-out basis and any other eligible Member on an opt -in basis that includes all charges related to energy commodity supply as well as program outreach and management. The variable price is to match the ComEd Price to Compare plus or minus the monthly Purchased Electricity Adjustment. If Bidder is Selected: City staff will recommend that the City Council execute a contract with the ARES at its next scheduled meeting 12 Months: 24 Months: 36 Months: MC Squared Energy Services, LLC December 23, 2025 Charles C. Sutton $150,000 annual $150,000 annual$450,000 total over the 36 month term $150,000 annual $300,000 total over the 24 month term Y Y Y Pa g e 5 o f 1 0 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 20 Revised 06-26-2025 ComEd Price Match Proposal (Full Load) Bidder Name: ______________________________________ Date Submitted: ____________________________________________ Authorized Representative: ___________________________ ComEd Price Match Proposals (Full Load : Bidders are to indicate whether they can deliver energy supply and program management services to all Eligible Members at a price that matched exactly the monthly ComEd Price to Compare to a subset of eligible accounts to provide energy supply, and provide a municipal contribution to the City Option Description Confirmation of ability to Match ComEd Monthly Rate for all Eligible Members (Y/N) Annual Municipal Contribution ($) ComEd Price Match For RFP Response: A full-requirements variable-price energy supply for all eligible Members on an opt-out basis and any other eligible customer on an opt -in basis that includes all charges related to energy commodity supply as well as program outreach and management. The variable price is to match the ComEd Price to Compare plus or minus the monthly Purchased Electricity Adjustment. If Bidder is Selected: City staff will recommend that the City Council execute a contract with the ARES at its next scheduled meeting 12 Months: 24 Months: 36 Months: MC Squared Energy Services, LLC December 23, 2025 Charles C. Sutton No bidN N N No bid No bid Pa g e 6 o f 1 0 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 21 Revised 06-26-2025 Sustainable Energy Supply Proposal: REC-only Approach 1 Bidder Name: ______________________________________ Date Submitted: ____________________________________________ Authorized Representative: ___________________________ REC-Only Approach 1: Bidders are to indicate cost associated with matching 100% of all energy delivered under a Fixed Price agre ement with approved Renewable Energy Credits Option Description Sourcing of Proposed REC (Source Type, State) Unit Cost per REC ($) REC-only Approach 1 For RFP Response: representing(“RECs”)the energy creditsRenewable environmental attributes from electricity in an amount equal to 100% of the annual load of all accounts that participate in the City’s aggregation program. To be clear, the volumes of REC provided through the REC -Only Approach 1 are in addition to the Illinois Renewable Portfolio Standard. To support the City’s participation in the EPA’s Green Power Partnership Program, the voluntary RECs purchased shall be Green-e compliant (www.green-e.org ) and sourced from wind or solar resources. The voluntary RECs shall be the vintage year in which the electricity is consumed by Evanston’s aggregated load, or up to six months prior to that vintage year or up to three months after the vintage year. Bidders must identify the location(s) of source(s) for the RECs they include in their offers (e.g., state of origin). If Bidder is Selected: City staff will recommend that the City Council execute a contract with the ARES at its next scheduled meeting 12 Months: 12 Months: 24 Months: 24 Months: 36 Months: 36 Months: MC Squared Energy Services, LLC December 23, 2025 Charles C. Sutton $3.50 per REC No bid MRETS Wind GE (MISO States) No bid MRETS Wind GE (MISO States) $4.00 per REC Pa g e 7 o f 1 0 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 22 Revised 06-26-2025 Sustainable Energy Supply Proposal: REC-only Approach 2 Bidder Name: ______________________________________ Date Submitted: ____________________________________________ Authorized Representative: ___________________________ REC-Only Approach 2: Bidders are to indicate cost associated with providing a fixed volume of Renewable Energy Credits to the Cit y Option Description Sourcing of Proposed REC (Source Type, State) Unit Cost per REC ($) REC-only Approach 2 For Response:RFP representing(“RECs”)the energyRenewable credits environmental attributes from electricity in an amount equal to 100,000 on an annualized basis. To be clear, the volumes of REC provided through the REC -Only Approach 2 are in addition to the Illinois Renewable Portfolio Standard. To support the City’s participation in the EPA’s Green Power Partnership Program, the voluntary RECs purchased shall be Green-e compliant (www.green-e.org) from wind or solar. The voluntary RECs shall be the vintage year in which the electricity is consumed by Evanston’s aggregated load, or up to six months prior to that vintage year or up to three months after the vintage year. Bidders must identify the location(s) of source(s) for the RECs they include in their offers (e.g., state of origin).. If Bidder is Selected: City staff will recommend that the City Council execute a contract with the ARES at its next scheduled meeting 12 Months: 12 Months: 24 Months: 24 Months: 36 Months: 36 Months: $350,000 per 100,000 RECs MC Squared Energy Services, LLC December 23, 2025 Charles C. Sutton MRETS Wind GE (MISO States) MRETS Wind GE (MISO States) $400,000 per 100,000 RECs No bid No bid Pa g e 8 o f 1 0 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 23 Revised 06-26-2025 Sustainable Energy Supply Proposal: Unbundled Supply from Renewable Energy Resources Bidder Name: ______________________________________ Date Submitted: ____________________________________________ Authorized Representative: ___________________________ Unbundled Supply from Renewable Energy Resources : Bidders are to indicate cost associated with providing a portion of Energy Supply from an approved renewable energy resource Option Description Sourcing of Energy (Source Type, State) Unit Cost ($/MWh) REC Included? (Y/N) Unbundled Supply from Renewable Energy Resources For RFP Response: Electricity supply (with or wind or solarassociatedwithoutRECs)from generation resources that meet the definition of the voluntary RECs defined in Section 2.2.1 above. If Bidder is Selected: City staff will recommend that the City Council execute a contract with the ARES at its next scheduled meeting 12 Months: 12 Months: 12 Months: 24 Months: 24 Months: 24 Months: 36 Months: 36 Months: 36 Months: No bid No bid No bid No bid No bid No bid No bidNo bidNo bid MC Squared Energy Services, LLC December 23, 2025 Charles C. Sutton Pa g e 9 o f 1 0 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 24 Revised 06-26-2025 Sustainable Energy Supply Proposal: Virtual net Metering Approach Bidder Name: ______________________________________ Date Submitted: ____________________________________________ Authorized Representative: ___________________________ Virtual Net Metering Approach : Bidders are to indicate the volume and discount available from virtual net metering (“subscriptions”) that can be provided to aggregation accounts Option Description Sourcing of Credits (Source Type, State) Discount Basis (% of Credits retained by consumer) REC Included? (Y/N) Virtual Net Metering Approach For RFP Response: Virtual net metering credits from are thatorsolarwindlocalresources connected to the ComEd distribution system. If Bidder is Selected: City staff will recommend that the City Council execute a contract with the ARES at its next scheduled meeting 12 Months: 12 Months: 12 Months: 24 Months: 24 Months: 24 Months: 36 Months: 36 Months: 36 Months: No bid No bid No bid No bid No bidNo bid No bid No bid No bid MC Squared Energy Services, LLC December 23, 2025 Charles C. Sutton Pa g e 1 0 o f 1 0 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d EXTENDED TERM AGREEMENT AMENDMENT NO. 4 This Extended Term Agreement Amendment No. 4 (hereinafter the “ETA No. 4”), is entered as of this 13th day of January 2026 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 , amended on September 12, 2023, and amended on September 26, 2024, and subsequently amended on March 31, 2025 (hereinafter the “MPSA” and ETA Amendments No. 1, No. 2, and No. 3 which are 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 36 months. 2. The Parties agree that by executing this ETA Amendment No. 4, the Extended Term will last until June 2029, 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 _Sharon Alegado__________________ ____________________________________ Printed/Typed Name: Printed/Typed Name: _Vice President, Sales and Marketing__ _____________________________________ Title: Title: Docusign Envelope ID: C2B7C383-BA3C-4E86-8CE7-E872624C772C 1/13/2026 Luke Stowe City Manager Alexandra B. Ruggie Corporation Counsel 01 / 22 / 2026 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 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 ComE d 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 ComE d’s Rate BES. Termination Fee for Withdrawing Customers: No Earl y Termination Fee - $0.00 (Zero) per utility account. Deliver y Term(s): 36 Months – June 2026 to June 2029 Docusign Envelope ID: C2B7C383-BA3C-4E86-8CE7-E872624C772C Doc ID: a42d624572c5a851811f42b858101df5a64ff89d 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) $150,000.00 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 Delivery Term within ninety (90) calendar days after the conclusion of such Deliver y 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 $150,000.00 (one hundred fifty thousand US dollars) • PM is the number of months from the beginning of Delivery Term through and including the last month with deliveries by 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 terminated Delivery Term Notwithstanding any other provision in this Agreement, Retail Electric Supplier may terminate in its sole discretion, or mutually agree with City 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 financially 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 voluntary Green-E® Certified Renewable Energy Certificates (RECs) on behalf of the Government Aggregator that meet the Sustainability goals and objectives of the City 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 by the City at any time during the Delivery Term. Prior to Retail Electric Supplier purchasing any RECs on behalf of the City, 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 by Retail Electric Supplier to acquire the RECs from third-part y REC providers. Docusign Envelope ID: C2B7C383-BA3C-4E86-8CE7-E872624C772C Doc ID: a42d624572c5a851811f42b858101df5a64ff89d The funds to acquire any authorized REC purchases on behalf of the City during the Delivery Term will be deducted from the Civic Grant Contribution amount identified above. In no case shall Retail Electric Supplier be obligat ed to purchase RECs during a Delivery Term that, in aggregate, would exceed the Civic Grant Contribution amount identified above. To the extent that the City does not request or authorize any REC purchases during the Delivery Term, Retail Electric Supplier shall provide the Civic Grant Contribution paym ent as outlined above. Retail Electric Supplier: Government Aggregator: MC Squared Energy Services, LLC City of Evanston Signed: Signed: Printed/Typed Name: Chuck Sutton Printed/Typed Name: Title: Title: Date: Date: Docusign Envelope ID: C2B7C383-BA3C-4E86-8CE7-E872624C772C President 1/13/2026 Luke Stowe City Manager Approved as to form: Alexandra B. Ruggie Corporation Counsel 01 / 22 / 2026 Doc ID: a42d624572c5a851811f42b858101df5a64ff89d Contract with MC Squared for Community Choice Electricity... Approval_of..._25-62_.pdf and 1 other a42d624572c5a851811f42b858101df5a64ff89d MM / DD / YYYY Signed 01 / 21 / 2026 10:27:48 UTC-6 Sent for signature to Alexandra Ruggie (aruggie@cityofevanston.org) and Luke Stowe (lstowe@cityofevanston.org) from lthomas@cityofevanston.org IP: 66.158.65.76 01 / 21 / 2026 10:29:12 UTC-6 Viewed by Alexandra Ruggie (aruggie@cityofevanston.org) IP: 24.13.226.57 01 / 21 / 2026 10:29:19 UTC-6 Signed by Alexandra Ruggie (aruggie@cityofevanston.org) IP: 24.13.226.57 01 / 22 / 2026 06:15:27 UTC-6 Viewed by Luke Stowe (lstowe@cityofevanston.org) IP: 76.136.85.191 01 / 22 / 2026 06:16:08 UTC-6 Signed by Luke Stowe (lstowe@cityofevanston.org) IP: 76.136.85.191 The document has been completed.01 / 22 / 2026 06:16:08 UTC-6