TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 4, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Report on the amendment to the agreement for Contract 20-RFP-24, Supply of Electricity, with MP2 Energy NE LLC, for a One (1) Year Extension, starting December 2025 and ending December 31, 2026
Body
Dear Sir:
At the Board meeting of January 9, 2025, the Board of Commissioners granted authority to exercise an option to extend the District’s existing agreement with electricity supplier MP2 Energy NE LLC (MP2), or to administer a reverse auction to procure electricity and renewable energy credits for years 2026 and 2027 under Contract 20-RFP-24, subject to obtaining pricing that is favorable to the District.
On August 21, 2025, MP2 proposed a 12-month extension pricing agreement, effective from the applicable meter read dates in December 2025 through December 31, 2026, and the Director of Procurement and Materials Management accepted the offer. The District and MP2 have agreed on new fixed supply rates of $0.04790/kWh for Group 1 and $0.04432/kWh for Group 2. These rates closely match the current prices of $0.04793/kWh and $0.04433/kWh, respectively. The extension prices are considered advantageous to the District and in the public’s best interest.
Pursuant to the authority granted by the Board of Commissioners to the Director of Procurement and Materials Management to secure electricity at favorable rates through 2027, Staff will continue to closely monitor market pricing for meter read dates spanning December 2026 through December 31, 2027, to ensure continued cost-effective electricity procurement.
Requested, Pinakin V. Desai, Acting Director of Maintenance and Operations
Respectfully Submitted, Darlene A. LoCascio, Director of Procurement and Materials Management