BID PACKAGE Full-Requirements Electricity Supply and Electric Aggregation Program Implementation and Operation Village of Bannockburn Village of Kildeer 2275 Telegraph Road 21911 Quentin Road Bannockburn, IL 60015 Kildeer, IL 60047 Bids Due: March 7, 2013 by noon CDT
Table of Contents Notice to Bidders...3 Instructions to Bidders...4 Bid Specifications...5 Bidder s Proposal...14 Bidder s Sworn Acknowledgement...17 No Third Party Acknowledgement...21 Exhibit 1: Load Profile........22 Exhibit 2: Implementation Timeline.. 25 Attachment 1: Plans of Operation and Governance. 26 Attachment 2: Notice of Award.. 27 Attachment 3: Power Supply Agreement.. 29 2
Notice to Bidders Village of Bannockburn Village of Kildeer 2275 Telegraph Road 21911 Quentin Road Bannockburn, IL 60015 Kildeer, IL 60047 The Villages of Bannockburn and Kildeer are soliciting bids for Full Requirements Electricity Supply as well as the administration of a turnkey program for the implementation and operation of their Electric Aggregation Programs. Bid Packages may be obtained from and Bids should be returned via email with a hard copy mailed to: Maria Lasday Village Manager Village of Bannockburn 2275 Telegraph Road Bannockburn, IL 60015 Mlasday@villageofbannockburn.org Bids will be accepted until noon CDT on March 7, 2013. Bids will be publicly opened, publicly read, and placed on file for public inspection at that time. Bidders, their authorized agents, and interested parties are invited to be present. Bids received after the date and time specified above will not be considered under any circumstances. Bids shall be submitted with an original ink signature on the form furnished by the Village of Bannockburn and the Village of Kildeer. Bids are invited from retail electric suppliers: (i) certified by the Illinois Commerce Commission ( ICC ) to serve residential and non residential customers; (ii) registered with Commonwealth Edison ( ComEd ) to serve residential and non residential customers under Rate RESS Retail Electric Supplier Service with Rider PORCB Purchase of Receivables with Consolidated Billing; and (iii) having at least three (3) years continuous experience in providing Full Requirements Electricity Supply to at least 25,000 customers (residential / non residential). Bids received from Bidders who do not meet the prequalification criteria set forth above will not be considered. The Village of Bannockburn and the Village of Kildeer reserve the right to accept or reject any or all bids, to waive any irregularities therein, and to accept the bid considered to be in the best interest of the Village of Bannockburn and the Village of Kildeer. Village of Bannockburn Maria Lasday Village Manager Village of Kildeer Michael Talbett Village Administrator 3
Instructions to Bidders 1. Legal Compliance. Bidders must comply with all applicable federal, state, and local laws, orders, rules, and regulations. 2. Clarifications. Bidders questions on the documents found within the Bid Package shall be in writing and submitted to the contact specified in the Notice to Bidders. Responses will be in writing with the question and response distributed to all Bidders as an addendum and made available for public inspection. The Village of Bannockburn and the Village of Kildeer (collectively the "Municipalities," or individually a "Municipality") reserve the right to make corrections, clarifications, or changes to the Bid Package at any time prior to the time bids are opened. All Bidders or prospective Bidders will be notified of said corrections, clarifications, or changes. 3. Preparation of Bids. Bids shall be made only on the forms found within the Bid Package. Each and every item found in the Schedule of Rates section of the Bid Package must be completed. All bids must be signed by an authorized official. Bids that contain omissions, erasures, alterations, or additions not called for, conditional or alternate bids unless called for, or that contain irregularities of any kind may be rejected. 4. Delivery of Bids. Bids shall be submitted in a sealed envelope plainly marked with the Bidder s full legal name and shall be addressed and delivered to the place and before the time set forth in the Notice to Bidders. Bids may be delivered by mail or in person. Bids transmitted electronically will not be accepted. Bids received after the time specified in the Notice to Bidders will be returned unopened. 5. Rejection of Bids. Bids that are not submitted on the forms provided in the Bid Package or that are not prepared in accordance with the documents found within the Bid Package may be rejected. If not rejected, the Municipalities may demand correction of any deficiency and accept the deficiently prepared proposal subject to compliance with the documents found within the Bid Package. 6. Acceptance of Bids. Bids submitted are offers only and the decision to accept or reject is a function of reputation, reliability, quality, expertise, and capability of the Bidder. The Municipalities reserve the right to reject any and all bids; to reject the low price bid; to waive all technicalities, omissions, errors, erasures, alterations, and additions not called for; and to waive irregularities and informalities in any bids submitted or in the bidding process; provided, however, the waiver of any prior defect or informality shall not be considered a waiver of any future or similar defect or informality. Bidders should not rely upon, or anticipate, such waivers in submitting their bid. 7. Award of Contract. The Municipalities reserve the right to make an award which, in their judgment, is the best and most favorable to the interests of the Municipalities. 4
Bid Specifications 1. Background The Village of Bannockburn, ( Bannockburn ), an Illinois home rule municipal corporation, and the Village of Kildeer, an Illinois municipal corporation ( Kildeer ) (collectively, the Municipalities or individually, Municipality ), pursuant to Section 1-92 of the Illinois Power Agency Act, 20 ILCS 3855/1-92 ( Act ), are seeking to aggregate residential and small commercial retail electric loads, located respectively, within the Municipalities and, for that purpose, solicit bids and enter into service agreements to facilitate for those loads the sale and purchase of electricity and related services and equipment ( Electric Aggregation Program or Program ). In accordance with the Act regarding governmental aggregation of electric service ( the Act ), on November 28, 2011, Bannockburn approved Resolution No. 2011-R-39, authorizing the placement of a referendum on the March 20, 2012 ballot, seeking authority to create an opt-out municipal aggregation program for its residents and small business customers. In accordance with the Act, on October 18, 2011, Kildeer approved Resolution No. 11-R-034 authorizing the placement of a referendum on the March 20, 2012 ballot, seeking authority to create an opt-out municipal aggregation program for its residents and small business customers. On March 20, 2012, the voters of the Bannockburn approved a referendum to authorize the operation of an Electricity Aggregation Program in the Village as an opt-out program. On March 20, 2012, the voters of the Kildeer approved a referendum to authorize the operation of an Electricity Aggregation Program in the Village as an opt-out program. Constellation NewEnergy ( Constellation ) and Bannockburn entered into a Power Supply Agreement dated March 21, 2012 with respect to the aggregation of electricity supply pursuant to Bannockburn s Electricity Aggregation Program. Constellation and Kildeer entered into a Power Supply Agreement dated March 21, 2012 with respect to the aggregation of electricity supply pursuant to Kildeer s Electricity Aggregation Program. On April 9, 2012, the Village of Bannockburn Board of Trustees approved an ordinance authorizing the establishment of an Electricity Aggregation Program Pursuant to the Act in Bannockburn as an opt-out program for the purpose of aggregating electrical loads of residential and small commercial retail electric customers in Bannockburn. 5
On April 25, 2012, the Village of Kildeer Board of Trustees approved an ordinance authorizing the establishment of an Electricity Aggregation Program Pursuant to the Act in Kildeer as an opt-out program for the purpose of aggregating electrical loads of residential and small commercial retail electric customers in Kildeer. Bannockburn and Kildeer s Electric Aggregation Programs are governed by a Plan of Operation and Governance ( POG ). The Municipalities have combined their eligible residential and small commercial retail electric loads and jointly solicit a bid, which bid is expected to be accepted and awarded jointly by the Municipalities. Notwithstanding the joint bid, each Municipality will individually negotiate its own Power Supply Agreement ( PSA ) and operate its own Electric Aggregation Program although the pricing for the eligible residential and commercial class customers within each Municipality will be identical. The Municipalities are jointly soliciting bids directly from qualified bidders, as defined in Section 2, without the assistance of a broker or consultant. The Village of Bannockburn, located in Lake County, has a population of 1,583. The Village of Kildeer, located in Lake County, has a population of 3,968. Combined, approximately 1,600 residential and small commercial retail electric loads ( Customers ) with an estimated demand of 40,000,000 kilowatt-hours (kwh) annually are eligible for enrollment in the Municipalities Electric Aggregation Program (collectively, the Aggregate ). The Aggregate is currently served by Constellation. The Aggregate s load profile, as provided by Constellation, is attached as Exhibit 1. 2. Prequalification Qualified bidders are retail electric suppliers ( Supplier ): (i) certified by the Illinois Commerce Commission ( ICC ) to serve residential and non-residential customers, (ii) registered with ComEd to serve residential and non-residential customers under Rate RESS Retail Electric Supplier Service with Rider PORCB Purchase of Receivables and Consolidated Billing, and (iii) having at least three (3) years continuous experience in providing Full-Requirements Electricity Supply, as defined in Section 3.1 below, to at least 25,000 customers (residential / non-residential). 6
3. Services to be Provided The Municipalities are jointly soliciting bids for Full-Requirements Electricity Supply, as defined in Section 3.1 below, for the Aggregate as well as the administration of a turnkey program for the implementation and operation of the Municipalities Electric Aggregation Programs (collectively, the Services ). The Services must be provided in compliance with all applicable requirements of law, which are defined to include the Act, the POG, the PSA, the rules and regulations of the ICC, the rules, regulations, and tariffs applicable to ComEd, and all other applicable federal, state, and local laws, orders, rules, and regulations, as each shall be amended from time to time (collectively, the Requirements of Law ). The Services shall include, but not be limited to, the following: 3.1 Full-Requirements Electricity Supply Supplier shall provide Full-Requirements Electricity Supply to meet the Aggregate s current and future demand during the term of the PSA. Full-Requirements Electricity Supply is defined as energy, capacity, transmission and distribution losses, RPS charges, imbalances, load factor adjustments, transmission, congestion charges, ancillary services, applicable taxes, and any additional services or charges necessary to provide continuous electricity supply to all eligible Customers in the Aggregate. Supplier, at its sole cost, shall arrange for and guarantee the delivery of electricity supply in accordance with the Requirements of Law, including without limitation any rules, regulations, and tariffs governing electricity supply from an alternative supplier to the Point of Delivery. 3.2. Electric Aggregation Program Implementation and Operation 3.2.1. Opt-Out Process The Municipalities are operating their Electric Aggregation Programs as opt-out programs pursuant to the Requirements of Law. Supplier, at its sole cost, shall, with the assistance of each Municipality, administer the Opt-Out Process for each Electric Aggregation Program, including, but not limited to, the following: a. Draft, print, and mail opt-out notices, in compliance with the Requirements of Law and in a form approved in advance by each Municipality ( Opt-Out Notices ), to all eligible Customers, excluding those Customers specified in Section 4.1.3. below. 7
The Opt-Out Notices must contain all information required to be provided to eligible Customers concerning the Electricity Aggregation Program and the Opt-Out Process pursuant to the Requirements of Law, including without limitation the terms and conditions of participating in the Electric Aggregation Program, the cost to the Customer of Full-Requirements Electricity Supply under the Program, the methods by which Customers may opt-out of the Program, and the time period in which Customers may optout of the program (the Opt-Out Period ). b. Provide, operate, and maintain a toll-free number for Customers to call with questions regarding the Electricity Aggregation Program and the Opt-Out Process. The toll-free number must be prominently included in all Opt-Out Notices and must be operated and staffed by Supplier throughout the Opt-Out Period. c. Provide, operate, and maintain a secure website for each Municipality s Electric Aggregation Program on which Customers may opt-out of the Municipality s Program. The internet address of the secure website must be prominently included in all Opt-Out Notices and must be accessible throughout the Opt-Out Period. d. Receive all opt-out notices returned by mail or via the secure website and provide each Municipality a report on the same, including without limitation a complete listing of all Customers who choose to opt-out of the Municipality s Electric Aggregation Program. Following the Opt-Out Period, Supplier, at its sole cost, shall compile a list of Customers to be enrolled in each Municipality s Electric Aggregation Program, taking steps, with the assistance of the Municipality, to ensure that all eligible Customers within the corporate limits of the Municipality have been included and that all Customers who have opted-out or are otherwise ineligible have been excluded. 3.2.2 Enrollment Process Supplier, at its sole cost, shall, with the assistance of each Municipality, administer the enrollment process for each Municipality s Electric Aggregation Program, including, but not limited to, the following: a. Submit a Direct Access Service Request ( DASR ) to Constellation for each eligible Customer to be enrolled in the Municipality s Electric Aggregation Program in order to begin service with Supplier as outlined on the Implementation Timeline attached as Exhibit 2. b. Pay, if requested by Constellation and/or ComEd, on behalf of each eligible Customer, any Switching Fee imposed by Constellation. 8
c. Complete any other actions required to enroll each eligible Customer in the Municipality s Electric Aggregation Program pursuant to the Requirements of Law. 3.2.3 Billing Supplier shall take all steps necessary to establish billing by ComEd under a consolidated billing format pursuant to Rider PORCB Purchase of Receivables and Consolidated Billing. 3.2.4 Customer Service Supplier must maintain adequate customer service personnel to promptly and courteously address customer questions or complaints as provided in the PSA. 3.2.5 Compliance Supplier shall assist the Municipalities in complying with any current or future Requirements of Law. This assistance shall include, without limitation, the provision of reports or information by Supplier to the Municipalities as may be requested from time to time. 4. Pricing The price not to exceed for Full-Requirements Electricity Supply, including the Services, shall be quoted at a fixed rate per kilowatt-hour (kwh) for the Residential Customer Class and Commercial Customer Classes defined in Section 4.1 below. Rates shall be quoted for (1) a nine month, (2) one year, (3) eighteen month, and (4) two year terms. All rates shall be expressed in cents per kilowatt-hour ( /kwh). 4.1 Customer Classes 4.1.1 Residential Customer Class The Residential Customer Class shall include, and the rates quoted for the Residential Customer Class shall be applicable to, all eligible Customers to which the following ComEd Delivery Classes are applicable: Residential Single Family Without Electric Space Heat Delivery Class Residential Multi Family Without Electric Space Heat Delivery Class Residential Single Family With Electric Space Heat Delivery Class Residential Multi Family With Electric Space Heat Delivery Class 9
4.1.2 Commercial Customer Class The Commercial Customer Class shall include, and the rates quoted for the Commercial Customer Class shall be applicable to, all eligible Customers to which the following ComEd Delivery Classes are applicable: Watt-Hour Delivery Class Small Load Delivery Class 4.1.3 Exclusions Subject to the Requirements of Law, the following shall be excluded from automatic enrollment in the Municipalities Electric Aggregation Programs: a. Any eligible Customer to which the following ComEd Delivery Classes are applicable: Residential Single Family With Electric Space Heat Delivery Class Residential Multi Family With Electric Space Heat Delivery Class b. Any eligible Customer in the Residential Customer Class, as defined in Section 4.1.1. above, taking service under the following ComEd Rates: Rate BESH Basic Electric Service Hourly Pricing Rate RDS Retail Delivery Service c. Any eligible Customer in the Commercial Rate Class, as defined in Section 4.1.2. above, taking service under the following ComEd Rates: Rate BESH Basic Electric Service Hourly Pricing Rate RDS Retail Delivery Service Notwithstanding the foregoing, any eligible Customer excluded from automatic enrollment in the Municipalities Electric Aggregation Programs may subsequently elect to enroll in the Program ( opt-in ) by notifying Supplier. 4.1.4 Rate Applicability Subject to the Requirements of Law, the price not to exceed quoted shall be applicable, without additional charges or fees, to any eligible Customer who elects to enroll in the Municipalities Electric Aggregation Programs ( opt-in ) at any time during the term of the PSA, including without limitation: a. Any eligible Customer that moves to a new location within the Municipality. 10
b. Any eligible Customer that moves into an existing facility within the Municipality. c. Any eligible Customer that moves into a newly constructed facility within the Municipality. d. Any eligible Customer that previously opted-out or was excluded for any other reason. e. Any eligible Customer that was inadvertently omitted during the Opt-Out Process. In each of the foregoing instances, the eligible Customer must contact the Supplier to enroll in the Municipality s Electric Aggregation Program. 5. Fees and Charges 5.1. Fees and Surcharges Prohibited The rates for Full-Requirements Electricity Supply, including the Services, may not include any commissions or broker fees to be paid to any third party. 5.2. Early Termination Fee Supplier may charge a one-time early termination fee, in an amount not to exceed $50.00, to Customers who terminate service for any reason other than moving out of the Corporate Limits of the Municipality. No additional termination charges beyond this one-time early termination fee may be assessed to any Customer. Any customer terminating service shall have no continuing obligations beyond payment of any current charges, unpaid balances, and, if applicable, the early termination fee. Subject to the Requirements of Law, Customers terminating service shall not be automatically switched to the applicable tariffed service provided by ComEd so that Customers may have the opportunity to choose another retail electric supplier. Any Customer that does not select another retail electric supplier will be switched to the applicable tariffed service provided by ComEd in accordance with the Requirements of Law. 6. Pricing Guarantee Should the ComEd tariff rates be set below the rates quoted, Supplier shall have the right to terminate the PSA, pursuant to its terms, allowing Customers to select another retail electric supplier or return to ComEd tariffed service, provided that Supplier, at its sole cost, takes all steps necessary to allow Customers to either return to the applicable tariffed service from ComEd 11
or receive service from another retail electric supplier. Alternatively, Supplier may continue to provide the Services pursuant to the PSA at a price equal to the ComEd rate. 7. Pricing Commitment The price will be a single fixed price value applicable for all eligible Kildeer and Bannockburn residential and small commercial accounts to be included in the aggregation program. This single fixed price value shall not include utility distribution charges or applicable taxes but will include supply, losses, capacity, transmission, ancillary costs and any other costs associated with offering a "price not to exceed" value. Bidders shall submit a fixed price not to exceed for the initial period of September -2013 through the May-2014 Delivery Period and for the next three Delivery Periods. This submittal shall contain market sensitive pricing, which pricing is subject to change until the document is executed on behalf of the Municipalities and the Supplier. If the Price and Delivery Period submitted to the Municipalities meet the Municipalities approval, then the appropriate authorized individuals on behalf of each Municipality shall promptly execute the document and return it via fax to the Supplier. Upon receipt by the Supplier, Supplier shall immediately execute the document (creating a fully executed Confirmation) and return the Confirmation by fax to the Municipalities for their records. Only a fully executed Confirmation shall be binding, form a part of this Agreement, and evidence an agreement between Supplier and the Municipalities with respect to the Price for a specific Delivery Period for the Aggregation. 8. Award of Bid The Municipalities intend to jointly award the bid to the lowest responsive and responsible bidder for the term selected based on Total Annual Cost, which shall be calculated as follows: Price not to exceed Rate x 40,000,000 kwh = Total Annual Cost 9. Submittal The Bidder s Proposal, Bidder s Sworn Acknowledgement, and No Third Party Acknowledgement forms included in this Bid Package shall be completed, signed by an authorized individual, and returned. Failure to complete, sign, and return the aforementioned documents may result in the bid being deemed unresponsive. Bids shall be transmitted by 12
personal delivery, overnight delivery, email or United States Mail, received no later than noon CDT on March 7, 2013 as evidenced by delivery receipt, to the following address: Maria Lasday Village Manager Village of Bannockburn 2275 Telegraph Road Bannockburn, IL 60015 Mlasday@villageofbannockburn.org 10. Additional Information The Municipalities, collectively or individually, may request additional information from the low bidder subsequent to awarding the bid. Such additional information may include, but is not limited to, component pricing, corporate structure, power generation and/or supply resources, financial and litigation statements, and any other pertinent information. If such additional information is required, Supplier shall provide such information within two (2) business days after receipt of said request or such longer period as may be set forth in the request. 11. Confidentiality Supplier shall identify any information submitted in the bidding process that is considered by it to be confidential or proprietary. The Municipalities shall not disclose, outside the bidding process, at any time, either during or subsequent to the bidding process, any such designated confidential or proprietary information, unless such disclosure will not cause competitive harm, or such information was actually known to the Municipalities prior to its submission by Supplier, or such information was properly obtained or developed independently by the Municipalities, or Supplier consents to such disclosure. Notwithstanding the foregoing, each Supplier, by its submission of its Proposal, acknowledges that the Municipalities are subject to the Illinois Freedom of Information Act, 5 ILCS 140/1 et seq. ( FOIA ), and that no disclosure made in good faith by the Municipalities pursuant to FOIA shall be deemed to violate this Section. 12. Contact for Questions Questions regarding this bid shall be in writing and submitted to: Maria Lasday Village Manager 13
Village of Bannockburn 2275 Telegraph Road Bannockburn, IL 60015 mlasday@villageofbannockburn.org Questions will be accepted up to two (2) business days prior to the bid date. 14
Return With Bid Bidder s Proposal Name Address Telephone Contact ( Bidder ) Facsimile To: Village of Bannockburn Village of Kildeer 2275 Telegraph Road 21911 Quentin Road Bannockburn, IL 60015 Kildeer, IL 60047 (collectively, the Municipalities ) Bidder warrants and represents that Bidder has carefully reviewed and understood all documents included, referred to, or mentioned in this bound set of documents, including Addenda Nos. [if none, NONE ] which are securely stapled to the end of this Bidder s Proposal ( Bid Package ). Bidder acknowledges and agrees that all terms capitalized in this Bidder s Proposal shall have the meaning given to them in the documents included in the Bid Package. 1. Proposal A. Power Supply Agreement and Services. If this Bidder s Proposal is accepted, Bidder proposes, and agrees, that Bidder will contract with the Municipalities, in the form of the Power Supply Agreement included in the Bid Package: (1) to provide Full Requirements Electricity Supply; (2) to administer a turnkey program for the implementation and operation of the Municipalities Electric Aggregation Programs; (3) to do all other things required of Bidder by the Power Supply Agreement; and (4) to provide, perform, and complete all of the foregoing in full compliance with, and as required by or pursuant to, the Power Supply Agreement; all of which is herein referred to as the Services. B. General. If this Bidder s Proposal is accepted, Bidder proposes, and agrees, that Bidder will do all other things required of Bidder or Supplier, as the case may be, by the Bid Package. 15
Return With Bid 2. Price not to Exceed Rate Proposal If this Bidder s Proposal is accepted, Bidder proposes, and agrees, to provide Full Requirements Electricity Supply at the rates set forth in the following Schedule of Rates, which Schedule of Rates Bidder understands and agrees will be made a part of the Power Supply Agreement: Schedule of Rates COMPLETE TABLE AS INDICATED Term Year Term Date Residential Customer Class Commercial Customer Class 9 month 9/1/13 5/31/14 /kwh /kwh 1 Year 9/1/13 9/1/14 /kwh /kwh 18 month 9/1/13 3/1/15 /kwh /kwh 2 Year 9/1/13 9/1/15 /kwh /kwh ALL RATES SHALL BE EXPRESSED IN CENTS PER KILOWATT HOUR ( /KWH) Basis for Determining Price not to Exceed Rates It is expressly understood and agreed that: 1. The Municipalities shall jointly award the bid to the lowest responsive and responsible bidder for the term selected based on Total Annual Cost, which shall be calculated as follows: (Price not to exceed Rate x 40,000,000 kwh) = Total Annual Cost 2. The Municipalities shall jointly select the term they determine to be in their best interest. 3. Rates shall be fixed during the term. 4. Price not to exceed rates shall be fixed and guaranteed during the term. 16
5. Rates shall apply, without exception, to any eligible residential or small commercial retail customer enrolling in the Municipalities Electric Aggregation Program during the term. 6. Price not to exceed Rate shall not include any broker fees or commissions. Return With Bid 7. Price not to exceed Rate Proposals shall be guaranteed until 5:00 PM CDT on March 20, 2013, subject to the terms in Section 7, Pricing Commitment. 8. The Municipalities will individually negotiate their own Power Supply Agreements and operate their own Electric Aggregation Programs, although the pricing for the eligible residential and commercial class customers within each municipality will be identical. Power Supply Agreements are subject to review and approval by the Municipality s Corporate Authorities. 3. Time Proposal If this Bidder s Proposal is accepted, Bidder proposes, and agrees, to do all things required in order to implement the Municipalities Electric Aggregation Programs in the manner and time prescribed in the Bid Package and according to the requirements of the Municipalities pursuant thereto. 4. Bidder s Representations A. No Collusion. Bidder warrants and represents that the only persons, firms, or corporations interested in this Bidder s Proposal as principals are those named in Bidder s Sworn Acknowledgement attached hereto and that this Bidder s Proposal is made without collusion with any other person, firm, or corporation. B. Not Barred. Bidder warrants, represents, and certifies that it is not barred by law from contracting with the Municipalities or with any unit of state or local government. C. Qualified. Bidder warrants and represents that it has the requisite experience, ability, capital, facilities, plant, organization, and staff to enable Bidder to perform the Services successfully. Bidder hereby agrees to furnish, upon request, within two business days or such longer period as may be set forth in the request, such additional information as may be necessary to satisfy the Municipalities that Bidder is adequately prepared to fulfill the Power Supply Agreement. D. Municipalities Reliance. Bidder acknowledges that Municipalities are relying on all warranties, representations, and statements made by Bidder in this Bidder s Proposal. 17
5. Municipalities Rights Return With Bid Bidder acknowledges and agrees that the Municipalities reserve the right to reject any and all Bidder s Proposals and reserves such other rights as are set forth in the Instructions to Bidders and the documents contained within the Bid Package. 6. Bidder s Obligations In submitting this Bidder s Proposal, Bidder understands and agrees that it shall be bound by each and every term, condition, or provision contained in the Bid Package, which are by this reference incorporated herein and made a part hereof. Dated this day of March, 2013. Attest / Witness Bidder By: By: Title: Title: Subscribed and Sworn to before me this day of March, 2013. Notary Public: My Commission Expires: [SEAL] Bidder s Sworn Acknowledgement ( Deponent ), being first duly sworn on oath, deposes and states that the undersigned Bidder is organized as indicated below and that all statements herein made are made on behalf of such Bidder in support of its Bidder s Proposal and that Deponent is authorized to make them. Deponent also deposes and states that Bidder has carefully prepared, reviewed, and checked its Bidder s Proposal and that the statements contained in its Bidder s Proposal and in this Acknowledgement are true and correct. 18
Return With Bid COMPLETE AS INDICATED ATTACH ADDITIONAL SHEETS IF NECESSARY Bidder s Status: Corporation Partnership Other ( ) (State) (State) (please specify) Legal Name: d / b / a (if different): Signature of Authorized Agent: Printed Name: (corporate seal) Title/Position: If a Corporation or Partnership, list all Officers or Partners: Title Name Address President Vice President Secretary Treasurer 19
Return With Bid Principal Business Office Address: Telephone: Facsimile: Local Office Address: Telephone: Facsimile: ICC Certification Number: ComEd Registration Completed: Yes Date: No List all states in which you are currently licensed and supply electricity to residential customers. Indicate the date on which you began offering service, the number of residential customer served, and the approximate annual load: State Service Start Customers Annual Load (kwh) 20
Return With Bid List all states in which you are currently licensed and supply electricity to non-residential customers. Indicate the date on which you began offering service, the number of non-residential customer served, and the approximate annual load: State Service Start Customers Annual Load (kwh) Dated this day of March, 2013. Attest / Witness Bidder By: By: Title: Title: Subscribed and Sworn to before me this day of March, 2013. Notary Public: My Commission Expires: [SEAL] 21
Return With Bid No Third Party Acknowledgement ( Deponent ), being first duly sworn on oath, deposes and states that the rates proposed by Bidder in the Schedule of Rates do not include any broker fees or commissions to be paid to any third party broker or consultant. Deponent also deposes and states that Bidder understands and acknowledges that the Municipalities are jointly bidding without the assistance of a broker or consultant and affirms that no broker fees or commissions will be paid to any third party broker or consultant in conjunction with the provision of Full Requirements Electricity Supply to the Municipalities Electric Aggregation Programs. Dated this day of March, 2013. Attest / Witness Bidder By: By: Title: Title: Subscribed and Sworn to before me this day of March, 2013. Notary Public: My Commission Expires: [SEAL] 22
Exhibit 1 Load Profile The attached Load Profiles for the Aggregate were compiled from data provided to the Municipalities by Constellation for purposes of preparing the Bidder's Proposal. 23
Exhibit 1 (con t.) Village of Bannockburn and Village of Kildeer Load Profile Sum of Billed Usage (KWH) Meter Read End Month 201207 201208 201209 201210 201211 201212 201301 Bannockburn/Kildeer 826,138 3,211,472 2,605,062 1,855,533 1,679,524 2,068,059 2,343,124 Residential 787,075 3,166,135 2,560,164 1,814,414 1,634,507 2,020,551 2,293,808 Small Commercial 39,063 45,337 44,898 41,119 45,017 47,508 49,316 Billed Accounts Meter Read End Month 201207 201208 201209 201210 201211 201212 201301 Bannockburn/Kildeer 317 1,374 1,372 1,403 1,352 1,355 1,358 Residential 255 1,295 1,293 1,324 1,276 1,279 1,282 Small Commercial 62 79 79 79 76 76 76 24
Exhibit 2 Implementation Timeline Bids Issued: March 1, 2013 Bids Due: March 7, 2013 Notice of Award: March 21, 2013 PSA Approval: Bannockburn: March 21, 2013 Kildeer: March 21, 2013 Opt Out Period: DASRs to ComEd: Meter Reading Dates: Switch from Constellation to Supplier shall take place following the meter reading dates listed below: Bannockburn: September 2013 Kildeer: September 2013 25
ATTACHMENT 1 Plans of Operation of Governance The current draft Plan of Operation and Governance for each Municipality s Electric Aggregation Program can be found on the Municipality s website at: Village of Bannockburn: www.bannockburn.org Village of Kildeer: www.villageofkildeer.com The Plans of Operation and Governance is incorporated herein and made a part of the Bid Package. 26
Attachment 2 Sample Notice of Award ( Supplier ) Return via: fax email The Village of Bannockburn ( Village ) has found to be most favorable to the interests of the Village the Proposal submitted by Supplier and dated on the day of, 2013, in which Supplier proposes to contract with the Village, in the form of the Power Supply Agreement ( PSA ) included in the Bid Package, to provide Full Requirements Electricity Supply as well as the administration of a turnkey program for the implementation and operation of its Electric Aggregation Program. The Village awards Supplier, contingent upon approval of the PSA by its Corporate Authorities, the exclusive rights to provide Full Requirements Electricity Supply to its Electric Aggregation Program for the term and at the rates listed below: Term: Rates: /kwh Residential and Commercial Dated this day of March, 2013 VILLAGE OF BANNOCKBURN Maria Lasday Village Manager 27
Attachment 2 Sample Notice of Award ( Supplier ) Return via: fax email The Village of Kildeer ( Village ) has found to be most favorable to the interests of the Village the Proposal submitted by Supplier and dated on the day of, 2013, in which Supplier proposes to contract with the Village, in the form of the Power Supply Agreement ( PSA ) included in the Bid Package, to provide Full Requirements Electricity Supply as well as the administration of a turnkey program for the implementation and operation of its Electric Aggregation Program. The Village awards Supplier, contingent upon approval of the PSA by its Corporate Authorities, the exclusive rights to provide Full Requirements Electricity Supply to its Electric Aggregation Program for the term and at the rates listed below: Term: Rates: /kwh Residential and Commercial Dated this day of March, 2013 VILLAGE OF KILDEER Michael Talbett Village Administrator 28
ATTACHMENT 3 Power Supply Agreement DRAFT VERSION AGREEMENT BY AND BETWEEN THE VILLAGE OF ( VILLAGE ) AND TO PROVIDE FULL-REQUIREMENTS ELECTRICITY SUPPLY AND RELATED SERVICES FOR THE VILLAGE'S ELECTRIC AGGREGATION PROGRAM This Agreement ( Agreement ), is entered into as of this day of March, 2013 ( Effective Date ) between the VILLAGE OF, an Illinois municipal corporation ( Village ) and, a corporation ( Supplier ) (each a "Party" and collectively, the Parties ). RECITALS A. The Village has established an Electricity Aggregation Program ("Program") pursuant to the Aggregation Ordinance and the Aggregation Statute, as defined in Article 2, and will conduct the Program as an opt-out program pursuant to the Aggregation Ordinance and the Aggregation Statute. B. In order to identify qualified suppliers of electricity for the Program, the Village conducted the Joint Power Supply Bid with the Village of. C. The Village conducted the Joint Power Supply Bid pursuant to the bid package attached to and incorporated into this Agreement as Exhibit A ("Bid Package"). D. The Supplier was selected by the Village pursuant to its response to the Bid Package, including which response is attached to this Agreement as Exhibit B ("Bid Response"). E. The purpose of this Agreement is for the Supplier to provide the Full-Requirements Electricity Supply Services and the Program Implementation Services (collectively, the "Services") to all Eligible Customers who choose not to opt-out of the Program throughout the Term of this Agreement at the Price set forth in Exhibit C. F. Supplier acknowledges and agrees that it has all certifications, authorizations, qualifications, and approvals necessary pursuant to the Requirements of Law to sell Full- Requirements Electricity Supply to Eligible Customers pursuant to this Agreement, including without limitation that: 29
a. Supplier is certified by the Illinois Commerce Commission as an Retail Electric Supplier and is authorized to sell Full-Requirements Electricity Supply to customers in the State of Illinois utilizing the existing transmission and distribution systems of ComEd within the service areas of ComEd; b. Supplier is currently registered with ComEd to serve residential and small commercial customers under Rate RESS - Retail Electric Supplier Service with Rider PORCB - Purchase of Receivables and Consolidated Billing; and c. Supplier has at least three years continuous experience as a Retail Electric Supplier and has provided Full-Requirements Electricity Supply to at least 25,000 residential or commercial customers. G. Supplier acknowledges and agrees that it will provide the Services, including without limitation Full-Requirements Electricity Supply to all Participating Customers, pursuant to the Bid Package, the Bid Response, this Agreement, and the Requirements of Law. H. The Village desires to enter into this Agreement with Supplier for the provision by the Supplier of Full-Requirements Electricity Supply to all Eligible Customers pursuant to the Program. AGREEMENT In consideration of the mutual covenants and agreements contained herein, the Village and the Supplier do hereby agree as follows: ARTICLE 1 RECITALS The foregoing recitals are, by this reference, fully incorporated into and made part of this Agreement. ARTICLE 2 DEFINITIONS 1. "Aggregate" means the total number of Eligible Customers that are within the jurisdictional boundaries of the Village of Bannockburn and the Village of Kildeer. 2. Aggregation Ordinance means that certain ordinance adopted by the Village on March 21, 2012, as Ordinance Number, authorizing the Program. 30
3. Aggregation Statute means Section 1-92 of the Illinois Power Agency Act, 20 ILCS 3855/1-92. 4. Bid Package means the bid documents provided to bidders pursuant to the Joint Power Supply Bid and attached to this Agreement as Exhibit A. 5. Bid Response means the response submitted by the Supplier to the Bid Package, which is attached to his Agreement as Exhibit B. 6. "Billing Services" means those services describe in Section 4.4 of this Agreement, including all subsections of Section 4.4. 7. ComEd means Commonwealth Edison. 8. "Compliance Services" means those services identified in Section 4.5 of this Agreement, including all subsections of Section 4.5. 9. "Confidential Information" is defined in Section 9.1 of this Agreement. 10. Customer Information means that certain information that the Electric Utility is required to provide to the corporate authorities of the Village pursuant to the Aggregation Statute, including without limitation those names and addresses and Electric Utility account numbers of residential and small commercial retail customers in the Aggregate area that are reflected in the Electric Utility's records at the time of the request. 11. "Data" is defined in Section 9.2 of this Agreement. 12. Electric Utility means ComEd. 13. Eligible Customers mean residential and small commercial electricity customers receiving Full-Requirements Electricity Supply within the Village who are eligible to participate in the Program pursuant to the Aggregation Statute and the Requirements of Law. 14. "Energy" means generated electricity. 15. "Enrollment Services" means those services described in Section 4.3 of this Agreement, including all subsections of Section 4.3. 16. "Extended Term" is defined in Section 5.1 of this Agreement. 17. "Force Majeure Event" is defined in Section 7.1 of this Agreement. 18. Full-Requirements Electricity Supply means all services or charges necessary to provide the continuous supply of electricity to all Participating Customers, including, without limitation, 31
Energy, capacity, losses, renewable portfolio standard (RPS) charges, imbalances, load factor adjustments, transmission costs, congestion charges, marginal losses, ancillary services, taxes applicable only to the Supplier, and any additional necessary services or charges. 19. Full-Requirements Electricity Supply Services means those portions of the Services described in Section 4.1 of this Agreement, including all subsections of Section 4.1. 20. ICC means the Illinois Commerce Commission. 21. Independent System Operator or ISO means that certain independent system operator for the Electric Utility established pursuant to Section 16-126 of the Public Utilities Act, 220 ILCS 5/16-626. 22. "Joint Power Supply Bid" means the bidding process conducted by the Village to identify the Supplier. 23. "New Customers" are defined in Section 4.3.9 of this Agreement. 24. Opt-Out Notice means the notices described in Section 4.2.1.1 of this Agreement and provided to Eligible Customers informing them of their ability to opt-out of the Program pursuant to the Requirements of Law: 25. "Opt-Out Period" means the time prior to the implementation of the Program during which Eligible Customers may choose not to participate in the Program pursuant to the Requirements of Law. 26. "Opt-Out Process" is defined in Section 4.2.1 of this Agreement. 27. "Participating Customers" means those Eligible Customers who do not opt-out of the Program and are not Special Billing Customers, and New Customers. 28. Plan of Governance or POG means that certain Plan of Operation and Governance approved by the Village on March 21, 2012, pursuant to the Aggregation Statute 29. Point of Delivery means the point specified by the Electric Utility at which the Supplier must deliver the Full-Requirements Electricity Supply to the Electric Utility for distribution to Participating Customers. 30. "Price" means the fixed price expressed in cents per kilowatt hour at which the Supplier will provide the Services as set forth in Exhibit C to this Agreement. 31. Program means the electricity aggregation program operated by the Village in accordance with the Aggregation Statute and authorized by the Aggregation Ordinance, to aggregate residential and small commercial retail electrical loads located within the corporate limits of the 32
Village for the purpose of soliciting and entering into service agreements to facilitate for those loads the sale and purchase of Full-Requirements Electricity Supply and related Services. 32. "Program Implementation Services" means those portions of the Services described in Section 4.2 of this Agreement, including all subsections of Section 4.2. 33. Requirements of Law means the Aggregation Ordinance, the Aggregation Statute, the Plan of Governance, the rules and regulations of the ICC, the rules, regulations and tariffs applicable to the Electric Utility and the Independent System Operator, and all other applicable federal, state, and local laws, orders, rules, and regulations. 34. Retail Electric Supplier or RES means an "alternative retail electric supplier" as that term is defined in Section 16-102 of the Public Utilities Act, 220 ILCS 5/16-102. 35. "Services" means the Full-Requirements Electricity Supply Services, Program Implementation Services, Enrollment Services, Billing Services, and Compliance Services provided in Article 4 of this Agreement. 36. "Special Billing Customers" are defined in Section 4.3.8 of this Agreement. 37. "Supplier" means. or the lawful successor, transferee, designee, or assignee thereof. 38. Tariffed Service means the applicable tariffed services provided by the Electric Utility as required by 220 ILCS 5/16-103 at the rates established in ComEd's "Price to Compare" for the applicable rate class, as posted on the ICC website, which includes ComEd's electricity supply charge plus ComEd's transmission series charge, but does not include ComEd's purchased electricity adjustment. 39. Term is defined in Section 5.1 of this Agreement. 40. "Village" means the Village of. 41. "Withdrawing Customer" is defined in Section 4.3.6 of this Agreement. 33
3.1 Village Responsibilities. ARTICLE 3 PROGRAM RESPONSIBILITIES 3.1.1 Customer Information. The Village shall, with the assistance of the Supplier, pursuant to the Requirements of Law, obtain the Customer Information from ComEd, 3.1.2 Notices and Customer Information from ComEd. The Village shall promptly forward to Supplier the Customer Information received from ComEd and each Party will promptly provide to the other Party any notices received by that Party from ComEd concerning the accounts of Eligible or Participating Customers. 3.1.3 Submittals to ComEd. The Village shall, with the assistance of Supplier, submit to ComEd (a) the "Government Authority Aggregation Form", (b) a list of Eligible Customers who are not Participating Customers because they have elected to opt-out of the Program, and (iii) a list of all Participating Customers. 3.1.4 No Village Obligations to Provide Services. The Parties acknowledge and agree that the Village is not responsible to provide, and this Agreement shall not be construed to create any responsibility for the Village to provide, the Services to any person or entity, including without limitation the Supplier, the Electric Utility, the ISO, Eligible Customers, Special Billing Customers, or Participating Customers. 3.1.5 No Village Financial Responsibility. The Parties acknowledge and agree that this Agreement does not impose or create, and shall not be construed to create, any financial obligation of the Village to any other person or entity, including without limitation the Supplier, the Electric Utility, the ISO, Eligible Customers, Special Billing Customers, or Participating Customers. 3.2 Supplier Obligations. 3.2.1 Provision of Services. The Supplier will provide all of the Services described in Article 4 of this Agreement throughout the Term, including but not limited to the provision of sufficient Full-Requirements Electricity Supply to allow the Electric Utility to deliver and distribute uninterrupted electric service to all Participating Customers. The Supplier acknowledges and agrees that the Village is not responsible to provide, and shall not be liable to the Supplier or any Eligible Customer for any failure to provide, any Services pursuant to this Agreement. 3.2.2 Compliance with the Requirements of Law. Supplier shall comply with all Requirements of Law. 34
3.3 Supplier Press Releases. The Supplier may issue press releases concerning the Program that are approved in advance by the Village prior to issuance. ARTICLE 4 SUPPLIER SERVICES 4.1 Full Requirements Electricity Supply: The Supplier must supply the following Full- Requirements Electricity Supply Services as provided in this Section 4.1. 4.1.1 Scheduling, Transmission and Delivery of Full-Requirements Electricity Supply. 4.1.1.1 Generally. The Supplier shall take all actions necessary to arrange for the scheduling, transmission, and delivery of Full-Requirements Electricity Supply to the Electric Utility for distribution to all Participating Customers. 4.1.1.2 Scheduling. Supplier shall schedule the Full-Requirements Electricity Supply for distribution as required by the ISO and the Electric Utility. 4.1.1.3 Distribution and Transmission Rights. Supplier will arrange for necessary distribution and transmission rights necessary for the delivery of the Full-Requirements Electricity Supply to the Electric Utility hereunder. 4.1.1.4 Transmission and Delivery to Electric Utility. 4.1.1.4.1 Transmission and Delivery. Supplier will cause to be transmitted and deliver to the Electric Utility at the Delivery Point sufficient Energy to provide continuous Full-Requirements Electricity Supply to all Participating Customers. The Village acknowledges that the Electric Utility, and not the Supplier, is responsible for the distribution of the Full-Requirements Electricity Supply to the Participating Customers after delivery by the Supplier to the Delivery Point, and that Supplier does not take responsibility for the distribution of the Full-Requirements Electricity Supply to Participating Customers after the Supplier provides Full-Requirements Electricity Supply to the Point of Delivery. 4.1.1.4.2 Failure of Delivery. Supplier acknowledges and agrees that if the Supplier fails to provide the Full-Requirements Electricity Supply to the Participating Customers pursuant to this Agreement, including without limitation if Supplier fails to schedule all or part of the Full-Requirements Electricity Supply for any Participating Customer, Supplier shall be solely responsible for any additional costs, charges, or fees incurred because of 35
such failure, and shall not pass through any such additional costs, charges, or fees to Participating Customers. 4.1.2 Pricing. Except as provided in Section 4.1.3 of this Agreement, the Supplier shall receive the Price in full payment for all Services, and shall not be entitled to any additional costs, adjustments, charges, fees, or any other payments or compensation, except that the Supplier may impose an early termination fee on Withdrawing Customers pursuant to Section 4.3.6 of this Agreement. The Village acknowledges that the Price does not include sales or other consumer-based taxes applicable to Participating Customers or other taxes that are not applicable to the Supplier. 4.1.3 Pricing Guarantee. If the rates for Tariffed Service to a particular rate class are set below the Price during the Term of this Agreement, Supplier shall have the right to either provide the Services to Participating Customers in such rate class at a price equal to the rate for Tariffed Service or, after taking all steps necessary to return all Participating Customers to the Electric Utility, terminate this Agreement pursuant to its terms. 4.2 Program Implementation Services. The Supplier must supply the following Program Implementation Services as provided in this Section 4.2: 4.2.1 Opt-Out Process. Supplier, at its sole cost and expense, shall, with the assistance of the Village, administer the process by which Eligible Customers are provided with the opportunity to opt-out of the Program prior to its implementation (the "Opt-Out Process"), including, but not limited to, the following: 4.2.1.1 Opt-Out Notices. Supplier, at its own expense, shall be fully responsible to prepare and mail form Opt-Out Notices to all Eligible Customers as required pursuant to the Requirements of Law. Opt-Out Notices must include all information required pursuant to the Requirements of Law, including without limitation the terms and conditions of participation in the Program, the cost to the Customer of Full-Requirements Electricity Supply under the Program, the methods by which Customers may opt-out of the Program, and the length of the Opt-Out Period. The Opt-Out Notices must prominently include the toll-free telephone number and secure website described Section 4.2.1.3. The form and content of the Opt-Out Notices must be approved by the Village prior to mailing by the Supplier. In addition to the Opt-Out Notices, the Supplier will provide Participating Customers with terms and conditions for the provision of Full Requirements Electric Supply to those Participating Customers, which terms and conditions shall comply with and accurately reflect all of the requirements of this Agreement and the Requirements of Law and shall be substantially similar to the form attached in Exhibit F. 36
4.2.1.2 Notices to Special Billing Customers. The Village acknowledges that the Village will provide notices to Special Billing Customers concerning the Program, the Price, the rates charged to Special Billing Customers under their existing service, and the opportunity for Special Billing Customers to opt-in to the Program as provided in Section 4.3.9 of this Agreement. 4.2.1.3 Toll Free Number and Secure Website. In addition to receiving completed Opt-Out Notices from Eligible Customers by mail, the Supplier shall, at is own expense, provide, operate, and maintain a toll-free number and secure website for the use of Eligible Customers to opt-out of the Program. The toll-free number must be operational during normal business hours and the secure website must be operational 24 hours a day, seven days a week during the Opt-Out Period. The Opt-Out Notices must prominently include both the toll-free number and the internet address of the secure website. 4.2.1.4 Reporting During the Opt-Out Period. Supplier is responsible for receipt of all Opt-Out Notices. Supplier must assemble, track, and report to the Village concerning the delivery and receipt of all Opt-Out Notices to and from Eligible Customers, including without limitation providing the Village with complete information concerning all Eligible Customers who choose to opt-out of the Program whether by mail, telephone, or the secure website. 4.2.2 Required Disclosures. Supplier shall provide Eligible Customers with all information required to be disclosed to Eligible Customers concerning Full-Requirements Electricity Supply and the Program pursuant to the Requirements of Law, including without limitation all information required to be included in the Opt-Out Notices. 4.3 Enrollment Services. The Supplier must supply the following Enrollment Services as provided in this Section 4.3: 4.3.1 Record of Participating Customers. Following the completion of the Opt-Out Period, the Supplier shall be responsible to compile a complete list of all Participating Customers and those Eligible Customers who have opted out of the Program, and shall ensure that no Eligible Customers who have opted out are enrolled in the Program. 4.3.2 Enrollment. Upon completion of the Opt-Out Process and the identification of all Eligible Customers who have opted out of the Program, the Supplier shall, at its sole cost and expense, take all actions necessary to enroll Participating Customers in the Program pursuant to the Requirements of Law. 4.3.3 Term of Enrollment. Participating Customers who do not opt-out of the Program shall be enrolled in the Program by the Supplier, and shall remain enrolled in the Program until the end of the Term, unless the Agreement is terminated pursuant to its terms or the 37
Participating Customer withdraws from the Program pursuant to Section 4.3.6 of this Agreement. 4.3.4 Direct Access Service Request. The Supplier shall submit a direct access service request to ComEd for each Participating Customer in compliance with the "standard switching" subsection of Rate RDS - Retail Delivery Service, in order to allow Full- Requirements Electricity Supply to commence following the Village's implementation schedule which is attached as Exhibit E. 4.3.5 Payment of Switching Fees. The Supplier shall reimburse Participating Customers for any switching fee imposed by the Electric Utility related to the enrollment of a Participating Customer in the Program within 30 days of receiving notice of such switching fee. The Supplier shall not be responsible to pay any switching fees imposed on Participating Customers who switch service from an alternative retail electric supplier. 4.3.6 Withdrawal by a Participating Customer. For Participating Customers who notify the Supplier after the completion of the Opt-Out Period that the Participating Customer desires to withdraw from the Program ("Withdrawing Customer"), the Supplier must, at the direction of the Participating Customer, drop the Participating Customer from the Supplier's Full-Requirements Electricity Supply on the next available meter read, which will result in restoring the Participating Customer to Tariffed Service. The Supplier may assess an early termination fee of $50 to Withdrawing Customers, provided that no early termination fee may be assessed to Withdrawing Customers who notify the Supplier that they are withdrawing because they are moving out of the Village. 4.3.7 Customer Service Inquiries. After completion of the Opt-Out Period, Supplier must maintain and operate a toll-free telephone number and internet website for the purpose of receiving questions and comments from Participating Customers concerning the Full-Requirements Electricity Supply. The Supplier may inform Participating Customers that questions about the delivery and billing of the Full-Requirements Electricity Supply should be directed to ComEd. Customer must promptly and courteously address customer service inquiries in a manner that meets or exceeds the ICC requirements for the operation of call centers. 4.3.8 Special Billing Customers. Subject to the Requirements of Law and due to the minimal and/or fixed nature of their existing billing rates, the following Eligible Customers shall not be automatically enrolled in the Program, but may subsequently elect to enroll in the Program as New Customers pursuant to Section 4.3.9 of this Agreement: a. Any Eligible Customer to which the following ComEd delivery classes are applicable: Residential Single Family With Electric Space Heat Delivery Class 38
Residential Multi Family With Electric Space Heat Delivery Class b. Any Eligible Customer in the residential customer class, as described in Section 4.4.2 of this Agreement, that is taking service under the following ComEd rates: Rate BESH Basic Electric Service Hourly Pricing Rate RDS Retail Delivery Service; and c. Any eligible Customer in the commercial customer class, as described in Section 4.4.2 of this Agreement, that is taking service under the following ComEd rates: Rate BESH Basic Electric Service Hourly Pricing Rate RDS Retail Delivery Service. (collectively, the "Special Billing Customers"). 4.3.9 New Customers. After the commencement of the Program and the enrollment of Participating Customers, the Supplier shall, at the request of the Village or of a New Customer, as defined in this Section 4.3.9, immediately enroll the following customers in the Program and provide Full-Requirements Electricity Supply to those customers at the Price: a. Any Eligible Customer within the Village that moves to a new location within the Village; b. Any Eligible Customer that moves into an existing or new facility within the Village; and c. Any Eligible Customer that was inadvertently omitted from the list of Participating Customers and not enrolled in the Program (collectively, the "New Customers"). 4.4 Billing Services. The Supplier must supply the following Billing Services as provided in this Section 4.4: 4.4.1 Billing Generally. Supplier shall confirm that billing to Eligible Customers will be provided by ComEd under a consolidated billing format pursuant to "Rider PORCB Purchase of Receivables and Consolidated Billing," and pursuant to the Requirements of Law. The Village acknowledges and agrees that ComEd will bill Participating Customers for the Price of the Full-Requirements Electricity Supply as part of its billing 39
for the distribution of such supply, and that the Supplier shall not be responsible for billing Participating Customers 4.4.2 Customer Classes. Eligible Customers shall be categorized within either the residential or commercial customer classes according to the applicable rates under which they received electricity supply from ComEd prior to participating in the Program. 4.4.2.1 Residential Customer Class. The residential customer class shall include Participating Customers taking service from ComEd under the following rates: Residential Single Family Without Electric Space Heat Delivery Class Residential Multi Family Without Electric Space Heat Delivery Class Residential Single Family With Electric Space Heat Delivery Class Residential Multi Family With Electric Space Heat Delivery Class 4.4.2.2 Commercial Customer Class. The commercial customer class shall include those Participating Customers taking service from ComEd under the following rates: Watt-Hour Delivery Class Small Load Delivery Class 4.5 Compliance Services. The Supplier shall assist the Village in complying with any current or future Requirements of Law concerning the operation of the Program, including without limitation the provision of reports or other information as the Village may reasonably request from time to time. ARTICLE 5 TERM 5.1 Term. This Agreement commences as of the Effective Date and is for a term of twelve (12) consecutive monthly billing periods starting from the initial meter read date designated by the Village in consultation with the Supplier in, and expires at the end of the last day of the 12th billing cycle for the Participating Customer(s) with the latest billing cycle (the Term ). The Village and the Supplier may extend the Term for additional periods of time up to 3 years for each extension, by written agreement, provided the extension and projected rate is approved by the Village of Board of Trustees and executed by each Party (each an Extended Term ). Nothing in this Article 5 related to the Term or the possibility of agreement 40
to an Extended Term may be construed or applied in any manner to create any expectation that any right or authority related to this Agreement granted by the Village to the Supplier will continue beyond the Term or an approved Extended Term. Notwithstanding the provisions of this Section 5.1, if the rate for Tariffed Service falls below the Price during the Term, the Supplier may terminate this Agreement after returning Participating Customers to Tariffed Service as provided in Section 4.1.3 of this Agreement. ARTICLE 6 REMEDIES AND TERMINATION 6.1 Village s General Remedies. In addition to every other right or remedy provided to the Village under this Agreement, if the Supplier fails to comply with any of the provisions of this Agreement for reason other than a Force Majeure Event pursuant to Section 7.1 of this Agreement or a Regulatory Event pursuant to Section 7.2 of this Agreement, then the Village may give notice to the Supplier specifying that failure. The Supplier will have 15 calendar days after the date of that notice to take all necessary steps to comply fully with this Agreement, unless (a) this Agreement specifically provides for a shorter cure period or (b) an imminent threat to the public health, safety, or welfare arises that requires a shorter cure period, in which case the notice must specify the cure period, or (c) compliance cannot reasonably be achieved within 15 calendar days but the Supplier promptly commences a cure and diligently pursues the cure to completion. If the Supplier fails to comply within that 15-day period, or the shorter period if an imminent threat, or if the Supplier fails to promptly commence a cure and diligently pursue the cure to completion, then the Village, subject to the limits of applicable federal or State of Illinois law, may take any one or more of the following actions: a. Seek specific performance of any provision of this Agreement or seek other equitable relief, and institute a lawsuit against the Supplier for those purposes. b. Institute a lawsuit against the Supplier for breach of this Agreement and, except as provided in Section 6.3 of this Agreement, seek remedies and damages as the court may award. c. In the case of noncompliance with a material provision of this Agreement, declare this Agreement to be terminated in accordance with the following: (1) The Village will give written notice to the Supplier of the Village s intent to terminate this Agreement ("Termination Notice"). The notice will set forth with specificity the nature of the noncompliance. The Supplier will have 30 calendar days after receipt of the notice to object in writing to termination, to state its reasons for that objection, and to propose a remedy for the circumstances. If the Village has not received a response from the Supplier, or if the Village does not agree with the Supplier s response or any remedy proposed by the Supplier, then 41
the Village will conduct a hearing on the proposed termination. The Village will serve notice of that hearing on the Supplier at least 10 business days prior to the hearing, specifying the time and place of the hearing and stating the Village intent to terminate this Agreement. (2) At the hearing, the Supplier will have the opportunity to state its position on the matter, present evidence, and question witnesses. Thereafter, the Village will determine whether or not this Agreement will be terminated. The hearing must be public and held on record. (3) The decision of the Village must be in writing and delivered to the Supplier by certified mail. If the rights and privileges granted to the Supplier under this Agreement are terminated, then the Supplier, within 14 calendar days after the Village s demand, must reimburse the Village for all costs and expenses incurred by the Village, including, without limitation, reasonable attorneys fees, in connection with that termination of rights or with any other enforcement action undertaken by the Village. 6.2 Actions on Termination or Expiration of this Agreement. This Agreement shall terminate upon the expiration of the Term or an Extended Term, as applicable (with the understanding that the expiration of service for any particular Participating Customer will be tied to that customer s billing cycle), or the Village's termination of the Agreement pursuant to Section 6.1.c. Upon termination as a result of expiration of the Term (absent agreement upon an Extended Term), or upon termination as a result of expiration of an Extended Term, as applicable, Supplier shall return Participating Customers to Tariffed Service upon expiration of the Term or Extended Term, as applicable, on the first available meter read. In the event of the Village s termination of the Agreement prior to the end of the Term or Extended Term pursuant to Section 6.1.c, as applicable, Supplier shall return Participating Customers to Tariffed Service on the second available meter read in order to provide the opportunity for Participating Customers to identify alternate sources of electrical supply prior to returning to Tariffed Service. Participating Customers shall not be liable for any termination fee as a result of such termination or expiration in accordance with the preceding sentences of this Section 6.2. Supplier shall not be responsible to any Participating Customer for any damages or penalties resulting from the return to Tariffed Service, including claims relating to the Tariffed Service price being higher than the Price herein. 6.3 Limitation of Liability. Except for the Supplier's failure to provide Full-Requirements Electricity Supply to Participating Customers or the disclosure of Customer Information in violation of the Requirements of Law, or as otherwise specifically provided herein, in no event will either Party be liable to the other Party under this Agreement for incidental, indirect, special, or consequential damages connected with or resulting from performance or non-performance of this Agreement, irrespective of whether such claims are based upon breach of warranty, tort (including negligence of any degree), strict liability, contract, operation of law or otherwise. 42
ARTICLE 7 FORCE MAJEURE EVENTS AND REGULATORY EVENTS 7.1 Force Majeure Events. The Supplier shall not be held in default under, or in noncompliance with, the provisions of the Agreement, nor suffer any enforcement or penalty relating to noncompliance or default (including termination, cancellation or revocation of the Franchise), where such noncompliance or alleged defaults occurred or were caused by a "Force Majeure Event," defined as a strike, riot, war, earthquake, flood, tidal wave, unusually severe rain or snow storm, hurricane, tornado or other catastrophic act of nature, labor disputes, or other event that is reasonably beyond the Supplier s ability to anticipate or control. Non-compliance or default attributable to a Force Majeure Event shall be corrected within a reasonable amount of time after the Force Majeure Event has ceased. 7.2 Regulatory Events. The Supplier shall not be held in default under, or in noncompliance with, the provisions of the Agreement as the result of any "Regulatory Event," defined as a change in the Requirements of Law or an adverse decision of a court or governmental body with competent jurisdiction that renders the Program illegal or this Agreement impossible to perform. ARTICLE 8 INDEMNIFICATION AND INSURANCE 8.1 Indemnification. The Supplier shall indemnify and hold harmless the Village, its officers, employees, agents, and attorneys, from and against any third party injuries, claims, demands, judgments, damages, losses and expenses, including reasonable attorney s fees and costs of suit or defense, arising from the Supplier's provision of the Services, except to the extent caused by the sole negligence of the Village. This duty shall survive for all claims made or actions filed within one (1) year following either the expiration or earlier termination of this Agreement. The Village shall give the Supplier timely written notice of its obligation to indemnify and defend the Village after the Village s receipt of a claim or action pursuant to this Section. For purposes of this Section, the word timely shall mean within a time period that does not cause prejudice to the respective positions of the Supplier and/or the Village. Nothing herein shall be construed to limit the Supplier s duty to indemnify the Village by reference to the limits of insurance coverage described in this Agreement. 8.2 Insurance. Contemporaneous with the Supplier s execution of this Agreement, the Supplier shall provide certificates of insurance, all with coverages and limits as set forth in Exhibit D to this Agreement. For good cause shown, the Village Manager, Village Administrator, or his or her designee may extend the time for submission of the required policies of insurance upon such terms, and with such assurances of complete and prompt performance, as the Village Manager, Village Administrator, or his or her designee may impose in the exercise of 43
his sole discretion. Such certificates and policies shall be in a form acceptable to the Village and from companies with a general rating of A minus, and a financial size category of Class X or better, in Best's Insurance Guide. Such insurance policies shall provide that no change, modification in, or cancellation of, any insurance shall become effective until the expiration of 30 days after written notice thereof shall have been given by the insurance company to the Village. The Supplier shall, at all times during the term of this Agreement, maintain and keep in force, at the Supplier s expense, the insurance coverages provided above. ARTICLE 9 CONFIDENTIAL INFORMATION 9.1 Confidential and Proprietary Information. Notwithstanding anything to the contrary set forth herein, the Parties are not required to disclose information which they reasonably deem to be proprietary or confidential in nature. The Parties agree that any information disclosed by a Party and designated as proprietary and confidential shall only be disclosed to those officials, employees, representatives, and agents of the other Party that have a need to know in order to administer and enforce this Agreement. For purposes of this Section, the terms "proprietary or confidential" include, but are not limited to, information relating to a Party's corporate structure and affiliates, marketing plans, financial information unrelated to the calculation of the Price or rates pursuant to the Requirements of Law, or other information that is reasonably determined by a Party to be competitively sensitive. A Party may make proprietary or confidential information available for inspection but not copying or removal by the other Party's representatives. Compliance by the Village with the Illinois Freedom of Information Act, 5 ILCS 140/1 et seq. ("Illinois FOIA"), including compliance with an opinion or directive from the Illinois Public Access Counselor or the Illinois Attorney General under the Illinois FOIA, or with a decision or order of a court with jurisdiction over the Village, shall not be a violation of this Section. 9.2 Ownership of Data and Documents. All data and information, regardless of its format, developed or obtained under this Agreement ("Data"), other than the Supplier s confidential information, will be and remain the sole property of the Village. The Supplier must promptly deliver all Data to the Village at the Village s request. The Supplier is responsible for the care and protection of the Data until that delivery. The Supplier may retain one copy of the Data for the Supplier s records subject to the Supplier s continued compliance with the provisions of this Agreement. 9.3 Limitations on Customer Information. Both Parties acknowledge and agree that the Customer Information is subject to, and must be maintained in compliance with, the limitations on disclosure of the Customer Information established by the Requirements of Law, including without limitation the Aggregation Statute, Section 16-122 of the Public Utilities Act, 220 ILCS 44
5/16-102, and Section 2HH of the Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2HH. ARTICLE 10 MISCELLANEOUS 10.1 Notices. Any notices, requests or demands regarding the services provided under this Agreement and the Attachments shall be deemed to be properly given or made (i) if by hand delivery, on the day and at the time on which delivered to the intended recipient at its address set forth in this Agreement; (ii) if sent by U.S. Postal Service mail certified or registered mail, postage prepaid, return receipt requested, addressed to the intended recipient at its address shown below; or (iii) if by Federal Express or other reputable express mail service, on the next Business Day after delivery to such express service, addressed to the intended recipient at its address set forth in this Agreement. The address of a Party to which notices or other communications shall be mailed may be changed from time to time by giving written notice to the other Party. To Village Village of Attention: With a copy to: To Supplier Attn: With a copy to: Attn: Phone: Fax: 10.2 Mutual Representations and Warranties. Each Party represents and warrants to the other Party, as of the date of this Agreement, that: a. It is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation, and if relevant under such laws, in good standing; b. It has the corporate, governmental and/or other legal capacity, authority and power to execute, deliver and enter into this Agreement and any other related documents, and perform its obligations under this Agreement, and has taken all necessary actions and 45
made all necessary determinations and findings to authorize such execution, delivery and performance; c. The execution, delivery and performance of this Agreement does not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets; d. It has reviewed and understands this Agreement; and e. It, to the extent applicable, shall comply with all the Requirements of Law. 10.3 Entire Agreement. This Agreement, including all Attachments hereto, contains all of the terms and conditions of this Agreement reached by the Parties, and supersedes all prior oral or written agreements with respect to this Agreement. This Agreement may not be modified, amended, altered or supplemented, except by written agreement signed by both Parties hereto. No waiver of any term, provision, or conditions of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or shall constitute a waiver of any other provision hereof, whether or not similar, nor shall such waiver constitute a continuing waiver, and no waiver shall be binding unless executed in writing by the Party making the waiver. 10.4 Exhibits. Exhibits A through F attached to this Agreement are, by this reference, incorporated into and made part of this Agreement. 10.5 Waivers. The failure of either Party to insist upon strict performance of such requirements or provisions or to exercise any right under this Agreement shall not be construed as a waiver or relinquishment of such requirements, provisions or rights. 10.6 Applicable Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Illinois without regard for the conflicts of law provisions thereof. 10.7 Controlling Provisions. In the event of any inconsistency between the terms herein and the terms of the Exhibits hereto, the provisions of the Agreement shall control. 10.8 Severability. Any provision in this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions or affecting the validity or enforceability of such provision in any other jurisdiction. The non-enforcement of any provision by either Party shall not constitute a waiver of that provision nor shall it affect the enforceability of that provision or the remainder of this Agreement. 46
10.9 Venue. Except as to any matter within the jurisdiction of the ICC, all judicial actions relating to any interpretation, enforcement, dispute resolution or any other aspect of this Agreement shall be brought in the Circuit Court of the State of Illinois, Lake County, Illinois. Any matter brought pursuant to the jurisdiction of the federal court shall be brought in the United States District Court of the Northern District of Illinois. 10.10 No Third-Party Beneficiaries. Nothing in this Agreement is intended to confer thirdparty beneficiary status on any person, individual, corporation or member of the public to enforce the terms of this Agreement. 10.11 No Waiver of Rights. Nothing in this Agreement shall be construed as a waiver of any rights, substantive or procedural, that the Village may have under Federal or state law unless such waiver is expressly stated herein. 10.12 Validity of Agreement. The Parties acknowledge and agree in good faith on the validity of the provisions, terms and conditions of this Agreement, in their entirety, and that the Parties have the power and authority to enter into the provisions, terms, and conditions of this Agreement. 10.13 Authority to Sign Agreement. Each Party warrants to the other Party that it is authorized to execute, deliver and perform this Agreement. The individual signing this Agreement on behalf of each Party warrants to the other Party that he/she is authorized to execute this Agreement in the name of the Party for which he/she is signing. 10.14 Binding Effect. This Agreement shall inure to the benefit of, and be binding upon, the Village and the Supplier and their respective successors, grantees, lessees, and assigns throughout the Term of this Agreement. 10.15 Non-Assignability. This Agreement shall not be transferred or assigned by the Supplier without the express written authorization of the Village. 10.16 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one instrument. 47
IN WITNESS WHEREOF, the Parties have duly executed this Agreement to be effective on the date first written above. Village of, IL: [Supplier] : Signed: Signed: Name: Name: Title: Title: Date: Date: Approved as to Form: Approved as to Form: Date: Date: 48
EXHIBIT A BID PACKAGE 49
EXHIBIT B BID RESPONSE 50
EXHIBIT C PRICE Residential Customer Class Price: per kwh Commercial Customer Class Price: per kwh Termination Fee for Withdrawing Customers who are not moving out of the Village $ per utility account 51
EXHIBIT D INSURANCE COVERAGES A. Worker s Compensation and Employer s Liability with limits not less than: (1) Worker s Compensation: Statutory; (2) Employer s Liability: $500,000 injury-per occurrence $500,000 disease-per employee $500,000 disease-policy limit Such insurance shall evidence that coverage applies in the State of Illinois. B. Comprehensive Motor Vehicle Liability with a combined single limit of liability for bodily injury and property damage of not less than $1,000,000 for vehicles owned, nonowned, or rented. All employees shall be included as insureds. C. Comprehensive General Liability with coverage written on an occurrence basis and with limits no less than: $2,000,000 Bodily Injury and Property Damage Combined Single Limit Coverage is to be written on an occurrence basis. Coverage shall include: - Broad Form Property Damage Endorsement - Blanket Contractual Liability (must expressly cover the indemnity provisions of the Contract) D. Professional Liability Insurance. With a limit of liability of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate and covering Consultant against all sums that Consultant may be obligated to pay on account of any liability arising out of the Contract. E. Umbrella Policy. The required coverages may be in any combination of primary, excess, and umbrella policies. Any excess or umbrella policy must provide excess coverage over underlying insurance on a following-form basis such that when any loss covered by the primary policy exceeds the limits under the primary policy, the excess or umbrella policy becomes effective to cover such loss. 52
F. The Village of as Additional Insured. The Village of shall be named as an Additional Insured on all policies except for: Worker s Compensation Professional Liability Each such additional Insured endorsement shall identify the Village of as follows: Village of, including its Board members and elected and appointed officials, its officers, employees, agents, attorneys, consultants, and representatives. G. Other Parties as Additional Insureds. In addition to the Village of, the following parties shall be named as additional insured on the following policies: Additional Insured Policy or Policies 53
EXHIBIT E TIMELINE 54
EXHIBIT F OPT-OUT NOTICE FORM 55