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Meeting Date:	01/28/2019
Retail Energy Services Award
Submitted for:	Joe Lopez	Submitted By:	Joe Lopez
Department:	Purchasing

Subject:

Discussion and possible action to award RFP 2019-003 “Retail Energy Services for Webb County” to the highest-ranking proposer that will provide the best economic value as recommended by the scoring committee, authorize the Civil Legal Department to negotiate and finalize all legal agreements between the retail energy provider and/or the energy consultant and further authorize the County Judge to sign all relevant documents and any other matters incident thereto.

Issue: Commissioners Court authorized the solicitation for retail energy services for Webb County. Current retail energy contract expired 12/31/2018 and is currently on an extension for 60 days in order to avoid an increase in rates per kwh.

Solution: Proposals were officially opened on January 22, 2019, at 10am. Four (4) proposals were submitted. Award RFP to the proposer offering the best value to Webb County for both price and valued added services.

Result: Secure a long-term retail energy agreement at the lowest fixed rate possible in accordance with market prices for retail energy.

Background:

Currently Webb County averages about 15.2 million Kwh per year in energy usage. Current energy provider rate is $0.05086. The overall bundle cost is approximately $0.09094 (Includes fees from Public Utility Commission, AEP and City pass thru). Totaling Webb County's estimated annual cost over $1.3 million.

The current contract with Reliant Energy will expire December 31, 2018 and is currently on a 60 day extension. Five (5) proposals were secured, retail energy rates were required at of January 18, 2019 at 11 a.m. (Central time). The Purchasing Agent and scoring committee will request additional pricing as of January 25, 2019 at 11 a.m. (Central time). Those updated rates will be presented to Commissioners Court for their consideration.

Previous Court Action:

Authorization to solicit for formal proposals for retail energy services.

Fiscal Impact

Budget Account Number:	Electricity Accts.
Funding Source:	Electricity
Balance:	$1,500,000.00
Financial Impact:
Energy expenditures will be paid from County wide accounts budgeted for this specific use. Potential annual savings may range from $90,000 to $110,000.00 by securing a lower kwh rate. Depending on the term approved by Commissioners Court, the total savings over a 5 year period may exceed $550,000.00 *(Estimate only, final approved rate and term of agreement will determine a more accurate estimated savings over the life of the agreement).*