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 $709,070.95.
Staff Summary
• The current term for the County’s natural gas contract is set to expire on September 30, 2022, therefore, staff worked with the County’s energy consultant, Tradition Energy, to conduct a bid and secure pricing for natural gas.
• An invitation to bid was extended to eleven potential service providers and natural gas rates were received from three vendors ranging from an annual cost of $709,070.95 to $847,939.98 for a 36-month contract.
• Based on the evaluation criteria set forth in the Invitation for Bid, Constellation NewEnergy Gas Division, LLC is the lowest responsive and responsible bidder for Lake County.
• Based on the fact that natural gas rates are a spot commodity, Tradition Energy recommended securing a fully fixed price for 36-48 month range to insulate from further volatility and hedge against the material risk of prices moving higher.
• The contract allows for flexibility and allows for continual monitoring of the market to renegotiate with existing vendor or issue a new bid.
Body
RESOLUTION
WHEREAS, the current term for the County’s natural gas contract is set to expire on September 30, 2022, therefore, staff worked with the County’s energy consultant, Tradition Energy, to conduct a bid and secure pricing for natural gas; and
WHEREAS, in accordance with Section 33.036 of the Lake County Purchasing Ordinance, Bids were called for by publication for Natural Gas Transportation and Management Services; and
WHEREAS, an invitation to bid was extended to eleven potential service providers and natural gas rates were received from three vendors ranging from an annual cost of $709,070.95 to $847,939.98 for a 36-month contract; and
WHEREAS, based on the fact that natural gas rates are a spot commodity, Tradition Energy recommended securing a fully fixed price for 36-48 month range to insulate from further volatility and hedge against the material risk of prices moving higher.
NOW, THEREFORE, BE IT RESOLVED, by this County Board of Lake County,
Illinois that the County Board Chair is hereby authorized to enter into a contract with Constellation NewEnergy Gas Division, LLC Louisville, Kentucky for Natural Gas Transportation and Management Services in an annual estimated amount of $709,070.95 for a 36-month contract.
DATED at Waukegan, Lake County, Illinois, on September 13, 2022.