ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to Approve a Three-Year CONTRACT with NOBLE AMERICAS ENERGY SOLUTIONS for the Purchase of the City of Peoria's ELECTRICITY SUPPLY.
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BACKGROUND:
In 2008, the City of Peoria worked cooperatively with other local units of government, including Peoria County and the City of East Peoria, to jointly purchase electricity supply for its own facilities. (This is separate from the municipal electricity aggregation contract for residential accounts.) The winning supplier was Sempra Energy Solutions, which has since changed its name to Noble Americas Energy Solutions. Council has taken a number of actions on this issue:
* The original contract (approved by Council July 8, 2008) ran from January 1, 2009 to December 31, 2011 and covered 40% of the City's electricity load. The price per MWh was $66.37 (or $0.0637 per kWh).
* On December 15, 2008, Council authorized the purchase of an additional 40% of the City's electricity load from Sempra, with the contract still ending on December 31, 2011. The price for that additional load was $62.72 per MWh.
* On May 11, 2010, the Council approved an extension of the contract through December 31, 2013 that blended the rate (for 80% of the City's load) to $58.12 per MWh for the extended term.
* On June 11, 2013, the Council approved an extension of the contract through December 31, 2015 that blended the rate (for 80% of the City's load) to $34.34 per MWh for the extended term.
The current contract expires at the end of 2015. Staff has been in contact with Noble to determine the best option for continuing the contract. Electricity prices are still considerably low and are currently lower than the current $34.34/MWh price. Noble is offering a three year contract (2016-2018) at $31.18 per MWh. There is also a $1.50 per MWh administrative charge that is above and beyond the quoted price. The contr...
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