HomeMy WebLinkAbout2015-08-10 15-276 RESOLVECOUNCIL ACTION
Item No. 15-276
Date: 8-10-2015
Item/Subject: Resolve, Ratifying Execution of Electricity Supply Contract(s) with
Maine Power Options
Responsible Department: Finance
Commentary: This order would ratify the actions taken by staff to execute the contract with
Maine Power Options (MPO) for certain medium service electrical accounts that expire November
1, 2015. For a number of years, the City of Bangor has been a member of MPO, which is an
energy purchasing consortium that serves local governments and non-profit organizations in
Maine. Under the current medium service contracts the City pays a rate of .0661/kwh for
supply costs.
In recent years, the energy market has been highly volatile,. partially driven by significant
changes in Natural Gas costs. On Monday, July 27, 2015 MPO provided pricing options available
for the above described accounts. The recommendation was to contract for a two year period
for a cost of .0675/kwh for supply. The alternative was to allow those accounts to revert to the
standard offer. The current prices for November through December range from .06846 -
.09605/kwh, which was significantly higher than we are paying. The reason to enter into a
month by month bid would be to wait and see if the electrical supply costs decrease.
Unfortunately, with the volatility of the market tied to the price of natural gas, there are no
guarantees at this time that the rates will be lower.
Due to the time sensitive nature of utility bidding, the actual acceptance of any pricing offer
must occur within 24 hours of its offering. Therefore, based on the recommendation of the
Finance Committee the contract was executed. This recommendation was reviewed and
approved by the Finance Committee on July 27, 2015.
Manager's Comments:
Associated Information: Order
Budget Approval:
Legal Approval:
Introduced for
X Passage -Consent
First Reading
Referral
Department Head
i City Manager
Page _of_
Finance Director
btf §96citor
Assigned to Councilor Sprague
CITY OF BANGOR
15-276
AUGUST 10, 2015
(TME.) Resolver Ratifying Execution of Electricity Supply Contract(s) with Maine Power
Options
By the City Council of the City of Bangor.
ORDERED, THAT the execution of electricity supply contracts with Maine Power Options to fix
electricity supply costs for the period beginning 11/1/2015 is hereby ratified.
IN CITY COUNCIL
AUGUST 10, 2015
PASSED
CITY CLERK