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Home My WebLink AboutContract Extension - MC Squared Energy Service LLC -Aendment #3 Services to an Aggregated Group Ex. June 2026 Memorandum To: Members of the Administration and Public Works Committee CC: Members of Administration and Public Works Committee From: Cara Pratt, Sustainabilty and Resilence Coordinator Subject: Approval of a One Year Contract Extension with MC Squared Energy Services LLC to Provide Services to an Aggregated Group Date: March 31, 2025 Recommended Action: Staff recommends that the City Council authorize the City Manager to execute a one-year contract extension for the Extended Term Agreement Amendment No. 3 to the existing Master Agreement to Provide Services to an Aggregated Group between the City of Evanston and MC Squared Energy Services LLC. Funding Source: N/A CARP: Renewable Energy, Implementation, Accountability, & Partnerships 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. The City's Electricity Aggregation Program has been in operation since 2012. An initial 30-month agreement term with MC Squared Energy Services LLC has been in effect since July 2021, which was extended for a year, then for an additional six months until June 2025. Staff recommends an additional one-year extension to allocate appropriate time for the next procurement process. Under the existing contract, MC Squared offers enrolled customers a ComEd Price Match Offer. 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. The City expects to receive $50,000 in a Civic Grant Contribution in late 2025 from the last extension amendment. If this amendment is approved, the City will receive a Doc ID: 1b143d1b11e58a5e028f11ee1f27bddf56e6bf7f $150,000 Civic Grant Contribution in late 2026. Historically, the city has used the Civic Grant contributions enrolledthe of on (RECs) behalf energy renewable purchase to credits Evanston accounts. To date, the City has used $931,872 of the $1,350,000 in Civic Grant Contributions to purchase RECs, and the remaining $418,128 went to the Sustainability Fund. Page 2 of 6 Doc ID: 1b143d1b11e58a5e028f11ee1f27bddf56e6bf7f EXTENDED TERM AGREEMENT AMENDMENT NO. 3 This Extended Term Agreement Amendment No. 3 (hereinafter the “ETA No. 3”), is entered as of this 31st day of March 2025 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 subsequently amended on September 26, 2024 (hereinafter the “MPSA” and ETA Amendments No. 1 and No. 2 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 twelve (12) months. 2. The Parties agree that by executing this ETA Amendment No. 3, the Extended Term will last until June 2026, 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: 3/31/2025 Date: ___________________________ Attest: Attest: ________________________________ ____________________________________ Signed Signed Sharon Alegado ____________________________________ Printed/Typed Name: Printed/Typed Name: Vice President, Sales and Marketing _____________________________________ Title: Title: Docusign Envelope ID: D7FDFB91-9EEC-431D-AB0D-DCBBD7B3AD6D Page 3 of 6 Luke Stowe City Manager Alexandra Ruggie Corporation Counsel 04 / 16 / 2025 Doc ID: 1b143d1b11e58a5e028f11ee1f27bddf56e6bf7f 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): Twelve (12) Months – June 2025 to June 2026 Docusign Envelope ID: D7FDFB91-9EEC-431D-AB0D-DCBBD7B3AD6D Page 4 of 6 Doc ID: 1b143d1b11e58a5e028f11ee1f27bddf56e6bf7f 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 Deliver y 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 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. Docusign Envelope ID: D7FDFB91-9EEC-431D-AB0D-DCBBD7B3AD6D Page 5 of 6 Doc ID: 1b143d1b11e58a5e028f11ee1f27bddf56e6bf7f 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: Charles C. Sutton Title: President Printed/Typed Name: Title: Date: 3/31/2025 Date: Docusign Envelope ID: D7FDFB91-9EEC-431D-AB0D-DCBBD7B3AD6D Page 6 of 6 Luke Stowe City Manager 04 / 16 / 2025 Doc ID: 1b143d1b11e58a5e028f11ee1f27bddf56e6bf7f One Year Contract Extension with MC Squared Energy Services... Approval_of_a_One...ovide_Service.pdf 1b143d1b11e58a5e028f11ee1f27bddf56e6bf7f MM / DD / YYYY Signed 04 / 14 / 2025 16:19:54 UTC-5 Sent for signature to Alexandra Ruggie (aruggie@cityofevanston.org) and Luke Stowe (lstowe@cityofevanston.org) from lthomas@cityofevanston.org IP: 66.158.65.77 04 / 14 / 2025 16:24:47 UTC-5 Viewed by Alexandra Ruggie (aruggie@cityofevanston.org) IP: 50.171.242.186 04 / 14 / 2025 16:24:56 UTC-5 Signed by Alexandra Ruggie (aruggie@cityofevanston.org) IP: 50.171.242.186 04 / 16 / 2025 10:21:46 UTC-5 Viewed by Luke Stowe (lstowe@cityofevanston.org) IP: 104.179.225.56 04 / 16 / 2025 10:22:13 UTC-5 Signed by Luke Stowe (lstowe@cityofevanston.org) IP: 104.179.225.56 The document has been completed.04 / 16 / 2025 10:22:13 UTC-5