TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON MAINTENANCE AND OPERATIONS
Mr. Richard Lanyon, General Superintendent
Title
Report on executing an amendment to the Agreement with Integrys Energy Services, Inc. for procurement of “Electric Energy Service” for a two year extension, Contract No. 06-RFP-01
Body
Dear Sir:
At the Board Meeting of September 4, 2008, the Board of Commissioners authorized the Chief of Maintenance and Operations and the Purchasing Agent to exercise an option to extend an agreement with Integrys Energy Services, Inc., for Contract 06-RFP-01, Procurement of Electric Energy Service, for a period of three years in an amount not to exceed $150,000,000, subject to the District obtaining a trigger price deemed acceptable to the District and further subject to the approval of the Attorney as to the form and legality. Subsequently, at the Board meeting of November 20, 2008, the Board revised the option for a time extension to a period of up to three years due to the uncertainty of the economy. It was determined that the two year extension, as opposed to three years, was in the publics’ best interest.
On December 5, 2008, Integrys Energy Services, Inc., executed the trigger price established by the District in “Schedule 4, Trigger Price Request Form 06-RFP-01, Procurement of Electric Energy Services,” thereby extending the agreement between the District and Integrys for an additional two years, from December 2009 through December 2011, for the hours and quantities for the listed facilities, at the price of $65.29/MWhr Peak and $43.08/MWHr Off-Peak.
Based on 2007 usage, this is a 4.68% reduction in energy commodity costs from the current commodity cost of $71.11/MWHr Peak and $43.03/MWHr Off-Peak. Assuming current tariffs and taxes, the District’s net savings are estimated at 3.68%, or $3,680,000.00 for the two year period.
Respectfully Submitted, Osoth Jamjun, Chief of Maintenance and Operations, OJ:MPS:SO’C:MAG
Respectfully Submitted, Darlene A. LoCascio, Purchasing Agent