HomeMy WebLinkAbout2014-10-15 14-321 RESOLVECOUNCIL ACTION
Item No. 14-321
Date: 10-15-2014
Item/Subject: Resolve, Ratifying Execution of Electricity Supply Contract(s)
Responsible Department: Finance
Commentary:
For a number of years, the City of Bangor has been a member of Maine Power Options, which is
an energy purchasing consortium that serves local governments and non-profit organizations in
Maine.
Currently, the City is under contract for certain medium service electrical accounts through
11/1/2014 at a rate of .061129/kwh for supply costs.
Unfortunately, this contract is expiring during a volatile period of time in the energy markets.
One driving factor being that natural gas costs rose significantly over the last year (nearly 40%).
The City did have the option of converting these accounts to the standard offer, but those rates
for the months of December — February are ranging from .12 - .16/kwh. On Monday, October 6,
2014 MPO provided pricing options available for these accounts. The recommendation was to
contract for a three year period for a cost of .08214/kwh for supply. This recommendation was
reviewed and approved by the Finance Committee on October 6, 2014.
Due to the time sensitive nature of utility bidding, the actual acceptance of any pricing offer
must occur within 48 hours of its offering. Therefore, based on the recommendation of the
Finance Committee the contract was executed. This order would ratify the actions taken by staff
to execute the contract.
Manager's Comments:
Associated Information: Order
Budget Approval:
Legal Approval:
Introduced for
X Passage -Consent
First Reading
Referral
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epartment Head
City Manager
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1.4-321
OCTOBER 15, 2014
Assigned to Councilor Gallant
CITY OF BANGOR
(TITLE.) Resolve, Ratifying Execution of Electricity Supply Contract(s)
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 11/1/2014 is hereby ratified.
IN CITY COUNCIL
OCTOBER 15, 2014
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
kvo, 6
CI Y7 -CLERK