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AGENDA ITEM # 11 Efficient, Effective and Economical Government
March 26, 2014
Equipment & Building Services Business Development & Procurement Services
Forest E. Turner, 670-3390 Jeanne Chipperfield, 670-7804
SUBJECT Authorize a three-year agreement with Invenergy Renewable, LLC, most advantageous proposer of nine in the amount of $1,289,254 for the purchase of renewable energy credits for the calendar years 2014, 2015, and 2016 - Not to exceed $1,289,254 Financing: Current Funds (subject to annual appropriations) BACKGROUND A Renewable Energy Credit (REC) represents the environmental, social and other positive attributes of power generated by renewable resources. The REC is split from the physical electricity and both are sold separately. RECs purchased from a renewable energy source, entitle the owner to claim the benefits of renewable energy. One REC represents one Megawatt hour of energy consumed. The City has purchased RECs since 2008 as a key component of the Cityâ€™s sustainability efforts. Through 2013, RECs were included in the Cityâ€™s electricity supply agreement. In December 2012, staff negotiated and Council approved an amendment and extension of the electricity supply agreement covering January 2013 - May 2016. The extension provided lower electricity rates for 2013 than the original agreement. A December 2013 briefing to the Budget, Finance & Audit Committee projected 2013 electricity savings of $887,483 and actual savings realized were $1,391,556.17. RECs for 2014 through 2016 were not included in the extended electricity supplemental agreement in order to pursue for more favorable pricing thought to be available through a separate procurement. REC pricing in the previous contract was $1.50 per REC. The best pricing available during negotiation of the extended electricity supply agreement was $2.75 per REC.