R2011-13 AUTHORIZING CITY MANAGER TO EXECUTE A CONTRACT WITH INTEGRYS ENERGY SERVICES

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FINANCIAL MANAGEMENT DEPARTMENT #2011-03 Date: February 16, 2011 To: Honorable Mayor Michael T. McElroy and City Council From: Ryan P. McCrady, City Manager Ron E. Neufeld, Finance Director Subject: REQUEST FOR PROPOSAL—NATURAL GAS SUPPLY SERVICES In September of 2010 the City of Decatur accepted bids from Alternative Energy Suppliers. The RFP covered the City street lights and natural gas accounts. The RFP was sent out to the eleven Alternative Energy Suppliers listed below: • Ameren Energy Marketing • America Approved Energy Services • Champion Energy Services • Constellation New Energy • Direct Energy Business • FirstEnergy Solutions • Glacial Energy • Integrys Energy Service • MidAmerican energy Company • Sempra Energy Solutions • Suez Energy Resources NA, Inc. Of all the bids received, only Integrys Energy Service submitted a proposal for natural gas. Integrys was also the low bidder on street lights and is the energy supplier for all our other electric accounts. We were ready to bring the natural gas portion of the bid to the City Council when it was determined that Ameren had in place a strict deadline of July 1, 2010 for notification of making a switch from Ameren to an alternative supplier. Since we were already past the 2010 date to give Ameren notification we decided to have the paperwork in place and ready to go by April 1, 2011, the 2011 notification deadline. What Integrys is proposing is a 100% index product. They will provide natural gas on a floating index rate that is measured and published nationally. They are estimating that the savings will be as much as 25% compared to what we would be paying Ameren. The program is the same as the one being offered through the Chamber. The attached resolution authorizes the City Manager to sign the forms and execute a contract with Integrys Energy Services. We recommend approval.