TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 29, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order and amend the agreement with Quarles & Brady LLP (Quarles) to represent the District's interest in the ComEd appeal of the delivery rate proceeding before the Illinois Commerce Commission (ICC) as a member of the REACT Coalition, and participate in settlement discussions to remedy the estimation method used by ComEd in their Embedded Cost of Service Study (ECOSS) and to participate in discussions of the ComEd Efficiency Program, in an amount of $140,000.00, from an amount of $26,000.00 to an amount not to exceed $166,000.00, Accounts 101-67000/68000/69000-612150,101-66000-601170 Purchase Order 3076742
Body
Dear Sir:
On December 6, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Quarles & Brady LLP (Quarles), to represent the District's interest in the ComEd appeal of the delivery rate proceeding before the Illinois Commerce Commission (ICC) as a member of the REACT (Request Equitable Allocation of Costs Together) Coalition, and participate in settlement discussions to remedy the estimation method used by ComEd in their Embedded Cost of Service Study (ECOSS) and to participate in discussions of the ComEd Efficiency Program, in an amount not to exceed $26,000.00.
The purchase order with Quarles enabled the District to participate as a member of REACT in the rate case 10-0467, which arose out of the original rate case, 07-655 and in discussions with ComEd concerning the Energy Efficiency Program administration improvements. REACT's efforts have thus far delayed and reduced the rate increase and have resulted in approximately $2,400,000.00 in annual savings for the District since 2008. Suggestions to ComEd for improving the ComEd Energy Efficiency Program administration have been positively received and are being actively discussed. This program has been underutilized for large electrical customers, which has resulted in a large balance of unused funds. REACT hopes to improve the program administration and increase the number of energy efficiency projects completed at large facilities. The District pays approximately $1,000,000.00 into this program annually.
An increase in the purchase order is being requested at this time in order to complete the appeal process and associated settlement discussions for the ICC's "Non Formula" rate case and to finalize the new requested rate, to minimize future costs to the District. This issue is included as part of the new rate case ICC Docket No. 13-0387. As this new rate case is an expansion of the scope of work of the existing purchase order, an amendment to the legal services agreement is required for Quarles to continue representing the District's interest in the new rate case. This purchase order increase will fund additional meetings with ComEd to discuss details of the improvement suggestions for the Energy Efficiency Program.
This purchase order has no prior change orders.
Additionally, approval of a change in funding is being requested in order to reflect a more accurate commitment item.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order and amend the agreement in an amount of $140,000.00 (approximately 538.5% of the current contract value), from an amount of $26,000.00 to an amount not to exceed $166,000.00 and to amend the legal services agreement with Quarles to represent the District's interest in the new rate case.
Funds are available in Account 101-66000-601170.
Requested, Manju Prakash Sharma, Director of Maintenance and Operations, SES:SO'C:RSE
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 29, 2013.