R2010-87 AUTHORIZING CITY MANAGER TO CONDUCT AN ELECTRICITY PROCUREMENT AND EXECUTE A CONTRACT

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FINANCIAL MANAGEMENT DEPARTMENT #2010-21 Date: Apri129, 2010 To: Honorable Mayor Michael T. McElroy d City Council From: Ryan P. McCrady, City Manager Ron E. Neufeld, Finance Director � Subject: REQUEST FOR PROPOSAL- ELECTRICITY SUPPLY SERVICES Introduction In 1998 the State of Illinois passed legislation to deregulate electricity supply services. The Legislature delayed the implementation of the deregulation process until January 2007. Final regulations were issued in September 2006 permitting customers to select a third party supplier to provide electricity supply services. Ameren would continue to be the distribution service provider for all customers in their franchise territory. If a customer did not select a supplier, Ameren was required to provide electricity supply services as the default provider. Ameren established rules to manage the transition process in 2006. Large accounts on primary service like the City of Decatur South Water Treatment Plant located at 1155 S Martin Luther King Jr. Drive were required to select a supplier by January 1, 2007 or remain with Ameren on the hourly default rates until May 2008. In November 2006 the City staff determined that a Request for Proposal should be issued for services to begin January 2007. Request for Proposal—June 2008 The City of Decatur issued a Request for Proposal in March 2008 to select a supplier for the City electricity accounts. At the time Constellation New Energy was the supplier. The City received bids from Constellation New Energy and Ameren Energy Marketing. The City selected Ameren Energy Marketing as the supplier. The Ameren Energy Marketing contract ends on the June 2010 meter read dates. Request for Proposal—June 2010 The City issued a Request for Proposal in Apri12010 to the following suppliers: • Ameren Energy Marketing • America Approved Energy Services • Champion Energy Services • Constellation New Energy