REQUEST FOR PROPOSAL Purchase of Electricity Services

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1 REQUEST FOR PROPOSAL Purchase of Electricity Services The Town of Nantucket 16 Broad Street Nantucket Massachusetts Request for Proposal February 10 th

2 A. INTRODUCTION AND INSTRUCTIONS TO POTENTIAL ENERGY SERVICES PROVIDERS (ESP) A.1 INTRODUCTION Nantucket Island is located 30 miles off the south coast of Cape Cod. The island is 14 miles in length and 3 1/2 miles wide. It is a beautiful oasis of over 40% conservation land with plentiful beaches accessible to the public. Nantucket Island is one of the most luxurious tourist destinations in the United States. With a population ranging from 10,000 to 50,000, Nantucket constitutes the southernmost settlement in the state of Massachusetts. The town is home to three public schools, Nantucket Memorial Airport, wastewater treatment plants, a solid waste composting and recycling facility and a number of municipal facilities including town government offices and a new central public safety facility. Our task now includes the desire to manage electricity commodity costs, and to that end, we are issuing this RFP with the goal of selecting an Energy Service Provider (ESP) to provide the Town with an electricity procurement quote. The Town of Nantucket has retained Titan Energy New England Inc. to assist in this mission. For more information on Nantucket, please visit We will be implementing the electricity procurement process as follows: Part 1 requests the submission of your standard fixed price electricity purchase contract and requested information as shown in section C.2. This information must be sent to Titan Energy New England Inc. via to by February 25 th, 2016 no later than 12:00 PM EST. Part 2 requests the submission of your final firm 12, 24, 36 and/or 48 month pricing offer on February 29 th, 2016 by 12:00 PM EDT via to The final pricing offer should be based on your final contract as negotiated by Titan Energy New England Inc. via Part 1. The final pricing offer shall be provided in conformance with Section A.3.1 hereof. Titan Energy New England Inc. will be assisting the Town with the RFP process and approval process. 2

3 A.2 GENERAL CONDITIONS This RFP is not an offer to contract. Acceptance of a proposal neither commits the Town to award a contract to any ESP, nor limits the right to negotiate in the best interest of the Town. We reserve the right not to contract with an ESP for any reason in our sole discretion. A.2.1 Cost of Proposals Expenses incurred in the preparation of proposals in response to this RFP are the Respondent s sole responsibility. A.2.2 Compliance with Laws All work and materials must comply with all federal and state laws, municipal ordinances, regulations including international regulations and directions of inspectors appointed by proper authorities having jurisdiction. A.3 PROPOSAL DELIVERY A.3.1 Respondent Submissions Part 1 - Respondents are requested to submit formal supply contracts and requested information per C.2 via to by February 25 th 2016 no later than 12:00 PM EDT. Part 2 Titan Energy New England Inc. requests that you complete the appropriate pricing form reproduced in Appendix A, Attachment #1 for electricity quotes. The pricing form(s) should be included with your to be submitted on February 25th In addition, at that time, we request that you submit your formal contract (unexecuted) as finally negotiated with Titan Energy New England Inc via Part 1. Your must provide a fax number and address that Titan Energy New England Inc. may use to fax back the executed contract. Please submit pricing quotations so that it is received no later than 12:00 PM EDT on February 29th, 2016 to the following addresses: Titan Energy New England Inc. at Titan Energy New England Inc. will be assisting the Town with the pre-approving of all pricing quotes. Please confirm that your quotation has been received by calling Justin Kearney at no later than 12:00 PM EDT on February 25th,

4 All quotations received by Titan Energy New England Inc. will be opened immediately upon the expiration of the 12:00 PM EDT deadline on February 29th, Any price quotation received after 12:00 PM EDT on February 29th, 2016 will be rejected and the Respondent will be notified that the quotation has been rejected. If pricing is accepted, the most advantageous contract will be determined before 2:30 PM EST on February 29th, 2016 and the contract executed shortly thereafter. A.3.2 RFP Questions Questions regarding the RFP are encouraged and should be submitted via to Justin Kearney at Titan Energy New England Inc. Any answers to questions from any ESP will be provided to all Respondents. A.3.3 Schedule of Events Dates Activity 2/10/16 RFP issued 2/25/16 Respondents Submit Formal Electricity Supply Contracts and company specific information as outlined in C.2 2/25/16-2/29/16 Negotiation of Electricity Supply Contracts 2/29/16 Final Electricity Pricing due and Contract to be executed. 30B Notification sent to DPU 11/30/16 Electric Contract Commences A.3.4 Town Discretion The Town shall have the right to choose a Respondent who has submitted an alternate plan or proposal. The Town also reserves the right, in its own discretion, to accept or reject any and all bids, to waive any irregularity and/or informality in any bid and to request and receive additional information from any Respondent when such acceptance, rejection, waiver or request is deemed in the best interest of the Town. B.1 ELECTRICITY USAGE INFORMATION An account list for each facility is provided for your use in Attachment #2. A signed National Grid LOA is also included in the bill package. Suppliers will be responsible to verify actual usage, interval data, and ICAP tags. 4

5 B.1.1 Information Regarding the Local Distribution Company (LDC): LDC: National Grid The accounts as per Attachment #2 are to be included when sending in price quotes. C.1 ELECTRICITY PRICING C.1.1 Minimum Proposal Requirements: Prices are to be provided in $/kwh Prices will be provided in terms ranging from 12 to 48 months Please include pricing groupings as (1) an aggregated package, and (2) G1 accounts onto one contract and G2/G3 accounts onto a separate contract 25% Swing provision for G2 and G3 contract to allow for future Town solar projects at the Nantucket Memorial Airport Include Winter Reliability charges in the fixed price offer Tax Compliance Form Non-collusion Form ELECTRICITY CONTRACT INFORMATION Respondent must include a standard electric power purchasing contract as requested in Part 1. The substance of the following terms should be included in the final electric power purchasing contract. If the Respondent would like to make exceptions to such terms, those exceptions must be included in their Part 1 response to this proposal. The ESP will have their account charges show up on the corresponding National Grid invoice. The Town is looking to have single billing. These contracts are for a fixed price, delivery of all requirements 24 hour per day, 365 days per year, 100% firm delivery of electric power. The Town requires a statement of disclosure regarding any restrictions on self-generation or purchases of net metering credits. Payment terms MUST match National Grid s 45-day policy for municipalities 5

6 The proposal price shall include any and all costs to ESP which include, but are not limited to the following: Any and all costs associated with the delivery of Firm All-Requirements Power to the appropriate delivery point nearest the Town, including but not limited to all ISO charges including: congestion costs, all capacity costs, energy, Winter Reliability, RMR charges, transmission and distribution line losses, administrative costs, spinning reserve services, installed and operating reserve services, scheduling services, system control and dispatching services, regulation and frequency response services, reactive supply and voltage control from generation locations, uplift charges, and all applicable royalties and taxes, including those taxes that may be imposed by the Federal Government at the Delivery Point. The ESP shall arrange for all delivery contracts with the electric LDC and deliver or cause to be delivered for all electric power sold under this agreement to the electric LDC System, within the ISO load zone where the Town accounts are located. The ESP warrants that it has title to electric power for the entire term of the Agreement hereunder and the right to sell same. Title shall be free and clear of all liens, encumbrances and claims whatsoever for the term of the Agreement. ESP shall indemnify the Town, its officers, directors, employees and its member towns and hold them harmless from all suits, actions, debts, accounts, damage, costs, losses, attorneys fees, and expenses arising from or out of adverse claims of any or all persons relating to ownership or possession of said electricity or to royalties, taxes, license fees or charges thereon which are applicable prior to the delivery of such electricity to the delivery point. Under the terms of the regulations referring to contractors and subcontractors, issued by the Department of Revenue Services in administration of the State Sales and Use Tax, to which the bidder is referred, the Town may purchase materials or supplies without payment of the tax and the Contractor shall not include in his bid nor charge any use or sales tax thereon. A copy of the Town Tax Exempt certificate is included in Appendix B. EQUAL OPPORTUNITY. The provisions of this section shall not apply where the total cost of all work to be performed or materials and equipment to be purchased by contractors, subcontractors or vendors in connection with this Contract is fewer than ten (10) employees. During the performance of this Contract, the Contractor agrees that he/she will not discriminate against any employee or applicant for employment because of race, color, religion, mental or physical disability, age, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, mental or physical disability, age, sex or national origin. Such action shall include, but not be 6

7 limited to, the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. No person or persons other than those named herein are interested in this Contract proposed to be taken; that it is made without any connection with any other person or persons making any proposal for the same work, and is in all respects fair and without collusion or fraud; that no person acting for or employed by the Town is now or will hereafter be directly or indirectly interested therein, or in any portion of the profits thereof in any manner which is unethical or contrary to law. C.2 Comparative Criteria: Suppliers are requested to provide additional information that will be helpful to the Town to better understand their service capabilities and experience with projects of similar size and scope. Customer references, financial information, company description, and miscellaneous marketing material that clearly demonstrates successful execution of comparable electricity supply services to those contemplated by the Town of Nantucket. The material will be evaluated using the point system outlined below: Customer References Highly Advantageous 5 points Three (3) written customer references from Municipalities in Massachusetts describing excellent work Advantageous 3 points Two (2) written customer references from Municipalities in New England describing excellent work Least Advantageous 1 point Two (2) written customer references describing satisfactory work Does not meet 0 points* Does not address the criterion Financial Information Highly Advantageous 5 points Credit rating of "A-" or better by S&P, "A-" or better by Fitch, or "A3" or better by Moody's Advantageous 3 points Credit rating of "BB-" or better by S&P, "BBB-" or better by Fitch, or "B3" or better by Moody's Least Advantageous 1 point Credit rating of "CCC-" or better by S&P, "CCC" or better by Fitch, or "C" or better by Moody's Does not meet 0 points* Does not address the criterion Company Description Highly Advantageous 5 points Short biography of direct company representative responsible for providing pricing via Titan Energy and relevant company information showing highly experienced and knowledgeable staff for similar types of projects in MA. 7

8 Advantageous 3 points Relevant company information specific to electricity supply services demonstrating satisfactory experience with managing similar type projects. Least Advantageous 1 point General company information showing no experience managing a similar project. Does not meet 0 points* Does not address the criterion *Proposal is automatically eliminated from further consideration if 0 points is received in any category. Proposal contract terms that are most advantageous to the Town of Nantucket C. 3 General Requirements: State of Massachusetts Department of Public Utility Control Electricity Supplier License Number Also please provide the name and contact information for the person from your company who will be the Lead Contact in this process. D.1 RULE FOR AWARD The contract will be awarded to the proposer that offers the lowest price and the most favorable contract terms to the Town of Nantucket. 8

9 TAX COMPLIANCE CERTIFICATION Pursuant to M.G.L. 62C, Sec.49A, the undersigned certifies under the penalties of perjury that it, to the best knowledge and belief of management, has filed all state tax returns and paid all state taxes required under law (if any, are so required). By: Name, President Date FEIN: 9

10 CERTIFICATE OF NON-COLLUSION The undersigned certifies under penalties of perjury that this bid or proposal has been made and submitted in good faith and without collusion or fraud with any person. As used in this certification, the word "person" shall mean any natural person, business, partnership, corporation, union, committee, club, or other organization, entity, or group of individuals. Signature of person signing bid or proposal Date Please Print Name Name of Business 10

11 Appendix A Attachment # 1 Attachment # 2 Pricing Sheets Electricity Account list and LOA 11

12 Attachment 1 & 2 Electricity Acct List and LOA To Be Added 12

13 1

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