TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 7, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue a purchase order and enter into an agreement with Quarles & Brady LLP (Quarles) to represent the District's interest in the ComEd Rate Design and Energy Efficiency proceedings before the Illinois Commerce Commission (ICC) as a member of the REACT Coalition, in an amount of $75,000.00, Account 101-66000-612430, Requisition 1423791
Body
Dear Sir:
The District has been a member of the REACT (Request Equitable Allocation of Costs Together) Coalition since 2008. The REACT coalition was formed by members of NEU (Northern Illinois Users), an ad hoc association of some of the largest industrial, commercial and institutional energy users in the Chicago area who will be adversely affected by proposed rate increases and the allocation of those rates as well as energy efficiency programs that directly affect large energy users. REACT’s efforts thus far have delayed and reduced the rate increase that has resulted in approximately $3.76 million in total savings to the District. The District has thus far paid a total of $571,372.10 towards this effort.
It is recommended that the District continue to oppose any rate increases and unfair allocation of rates by ComEd by remaining in the REACT coalition and funding Quarles to represent the District in two proceedings before the ICC in 2016. One proceeding is the Rate Design case in which ComEd is asking the Illinois Commerce Commission (ICC) to set new rates in 2016. ComEd is required to file a rate design proceeding before the ICC by April 30, 2016. If ComEd’s request for a rate increase and allocation of that increase is approved by the ICC, the District’s electricity expenditures will likely increase proportionally. REACT is positioned to participate in that proceeding to oppose certain aspects of the rate increase that unfairly targets large users such as the District.
The other proceeding in which REACT has an interest in participating is the Energy Efficiency Program in which ComEd will ask the ICC to approve ComEd’s costs for administering the energy efficiency program that ComEd currently controls. Among other arguments, REACT will advocate before the ICC for large customers such as the District to be allowed to participate in a self-direct program that would transfer control of the energy efficiency programs to the individual users. That proceeding will be filed by ComEd in 2016 as well.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Quarles & Brady, LLP in an amount of $75,000.00 to represent the District’s interest in the future rate design and energy efficiency proceedings and any ancillary activities related to those proceedings. As an accommodation to REACT, the firm has proposed a discounted hourly rate schedule for partners Christopher Townsend and Christopher Skey of $595.00 and $495.00, respectively. Other personnel under their supervision will be billed at the standard rates. As was the case in the past, monthly invoices will be apportioned amongst all REACT members based upon energy usage.
Funds are available in Account 101-66000-612430.
Requested, Manju Prakash Sharma, Director of Maintenance and Operations, SES:SMP:PD:JL
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 April 7, 2016