TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authorization to procure electricity for years 2028, 2029, and 2030, subject to obtaining pricing that is favorable to the District
Body
Dear Sir:
It is requested that the Board of Commissioners authorize the Director of Procurement and Materials Management to procure electricity at favorable pricing for years 2028, 2029, and 2030.
To secure favorable electricity pricing for these years, the District may conduct a reverse auction using suppliers prequalified under Contract 26-RFP-03. The auction will request pricing for electricity supply in 2028, 2029, and 2030, with options for different generation mixes, including 100% conventional, 90% conventional/10% renewable, and 85% conventional/15% renewable. Suppliers may submit and revise their pricing until the close of each auction group and must hold their prices for a defined period (i.e. three hours) after the auction closes to allow the District time to evaluate and compare offers.
For 2028 and 2029, the District may also accept extension pricing from the current supplier, MP2 Energy NE LLC (MP2). A reverse auction was conducted on November 9, 2022 under Contract 20-RFP-24, resulting in awards to MP2 for Groups 1 and 2 for an initial two-year term (2023 and 2024) with an option to extend the agreement up to an additional five years. The Director of Procurement and Materials Management has exercised three one-year extensions of the agreement, on May 30, 2024, August 21, 2025, and February 11, 2026, in response to favorable pricing. The District retains the option to extend the agreement for up to two additional years. If extended, only the pricing and contract termination date will change. This flexibility allows the District to capitalize on market fluctuations, provided favorable pricing is accepted within hours of offer receipt.
The extension of the termination date is in compliance with the Illinois Criminal Code because it is germane to the original agreement as signed and is in the best interest of the District.
Due to the short period to accept pricing, it is requested that the Board of Commissioners authorize the Director of Procurement and Materials Management to exercise either the option to extend or to conduct a reverse auction to procure electricity for years 2028, 2029, and 2030. The authorization expires December 31, 2029.
A report will be submitted to the Board of Commissioners after procurement of electricity.
Requested, Edward J. Staudacher, Director of Maintenance and Operations, MFM
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 5, 2026