Title
Resolution authorizing a contract with Constellation NewEnergy Gas Division, LLC Louisville, Kentucky for Natural Gas Transportation and Management Services in an annual estimated amount of $494,500.89.
Staff Summary
* The current term for the County's natural gas contract with Constellation NewEnergy Gas Division, LLC is set to expire on September 30, 2025.
* Purchasing identified a cooperative contract through Omnia Partners with TFS Energy Solutions, LLC d/b/a Tradition Energy that provides for management of the procurement process, contract review and negotiation assistance.
* The Omina Partners contract with TFS Energy Solutions, LLC d/b/a Tradition Energy expires November 30, 2027, with renewal options through November 30, 2031.
* In accordance with ?33.115 of the Lake County Purchasing Ordinance, Lake County may participate in a cooperative purchasing agreement for the procurement of goods and services in accordance with an agreement entered between the participants.
* TFS Energy Solutions, LLC d/b/a Tradition Energy obtained pricing from three potential service providers and natural gas rates ranged from an estimated annual cost of $494,500.89 to $529,685.88 for a 48-month contract. Based on pricing received, Constellation NewEnergy Gas Division, LLC is the lowest service provider for Lake County.
* Based on the fact that natural gas rates are a spot commodity, Tradition Energy recommended securing a fully fixed price for 48-month contract to insulate from further volatility and hedge against the material risk of prices moving higher.
Body
RESOLUTION
WHEREAS, the current term for the County's natural gas contract with Constellation NewEnergy Gas Division, LLC is set to expire on September 30, 2025; and
WHEREAS, in accordance with Section ?33.115 of the Lake County Purchasing Ordinance, Lake County may participate in a cooperative purchasing agreement for the procurement of goods and services in accordance with an agreement entered between the...
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