HomeMy WebLinkAbout9a. Village Manager's Report (After Oaths) 05/05/2015Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: ACTING VILLAGE MANAGER DAVID STRAHL
FROM: DIRECTOR OF PUBLIC WORKS
RE: RFP RESULTS FOR THE PURCHASE OF ELECTRICITY
DATE: APRIL 30, 2015
Background
Public Works routinely purchases electricity for water/sewer pumping as well as streetlighting
and miscellaneous use. Since the commercial electricity market was deregulated several years
ago, the Village has been requesting pricing from electricity suppliers utilizing a request for
proposals (RFP) process. Our current agreement is with Constellation Energy; a subsidiary of
Exelon. It is set to expire in December 2015.
In anticipation of the upcoming expiration, and recognizing an upward trend in the electricity rate
forecast, staff requested price proposals from electricity suppliers for a new contract that begins
in December. Staff requested pricing for 1, 2, and 3 -year terms. The current rate is 4.05 cents
per kilowatt hour.
Results
Due to the volatile nature of the electricity market, most supplier price tenders are valid for a
very short period of time. Most vendors stipulate acceptance within two (2) business days.
To provide a mechanism for managing this market idiosyncrasy, staff will request written
proposal from energy suppliers on Monday, May 4, 2015 and present same for the Village
Board's consideration at the May 5, 2015 Regular Meeting.
Recommendation
Staff will present an contract award recommendation at the May 5, 2015 Village Board meeting
pursuant to a due diligence analysis of the RFP results.
Sean P. Dorsey