RECOMMENDATION:
Approve and Authorize a First Amendment to Electricity Supply Agreement between City of Houston (Customer) and Reliant Energy Retail Services, LLC (Supplier) for the supply of electricity and related services to allow the City to participate in the Supplier’s Voluntary Load Management Program.
SPECIFIC EXPLANATION:
On April 22, 2020, by Ordinance No. 2020-341, City Council authorized the Mayor to enter into an Electricity Supply Agreement with a retail electric provider (REP) for the supply of electricity and related services. On August 30, 2019, the City issued a Request for Proposals for retail electric provider services. The City selected Reliant Energy Retail Services, LLC based on the criteria outlined in the RFP which included price. The term of the contract is five years with two (2) one-year options.
Reliant Energy Retail Services, LLC has updated its services to offer a Voluntary Load Management Program (Program) at City facilities. 12 facilities were selected based on high peak summer demands. The selected locations will reduce energy consumption during peak use hours. Reduction in energy consumption will not affect the delivery of City services. The Program’s season begins July 1, 2021, and ends September 30th, 2021. At the conclusion of the Program, Reliant Energy Retail Services, LLC will credit the City’s invoices for the participating locations based on voluntary load reduction commitment and actual event reduction. There is no penalty for withdrawing from the Program. Therefore, the Finance Department and the General Services Department recommend that City Council approve a First Amendment to the electricity supply agreement with Reliant Energy Retail Services, LLC to allow the City to participate in Reliant Energy Retail Service’s Voluntary Load Management Program.
M/WBE PARTICIPATION: An MWBE goal of at least 15% has been established for the contract. It is anticipated that the Supplier will achieve the goal by the completion of the contract.
FISCAL NOTE: There is no impact to the fiscal budget or no additional spending authority. Therefore, no Fiscal Note is required as stated in the Financial Policies.
DIRECTOR’S SIGNATURE/DATE:
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Tantri Emo
Finance Department
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C.J. Messiah, Jr.
General Services Department
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Jerry Adams
Chief Procurement Officer