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HomeMy WebLinkAbout2012-02-29 RMLD Power and Rate Committee MinutesReading Municipal Light Department (RMLD) Board of Commissioners Power & Rate Committee Meetin¢ Regular Session T { r! r � K February 29, 2012 r Start Time: 6:35p.m. End Time: 6:59 p.m. 1011 MAY -2 A q: 50 Attendees: Committee Members: Messrs. Hahn and Soli and Ms. Snyder RMLD Staff: Messrs. Cameron and Seldon Chairman Hahn called the meeting to order at 6:35 p.m. Chairman Hahn asked Mr. Seldon to make his presentation of the Power Supply Plan to the committee. Mr. Seldon said that this is the sixth year that the RMLD has brought the layering and laddering strategy to the Power & Rate Committee and this strategy has been successful in formulating the RMLD's power supply. Mr. Seldon explained the spreadsheet that was attached to his memo and what the amounts were for power supply for which the RMLD was going out for bid. Ms. Snyder asked what would be left for non contracted power supply after doing this bid. Mr. Seldon replied that the RMLD will have approximately 25% of its energy in the market, depending on the time of year. Ms. Snyder asked how many companies are expected to bid on this Request for Proposal. Mr. Seldon thought there may be about eight or nine companies that may respond to the bid. Mr. Seldon also explained that the contracts with the bidders would be finalized with the short listed bidders. Ms. Snyder asked about the bid process and Mr. Cameron explained that Power Supply bidding is not subject to Chapter 30B bid laws. He went on to say the bids from these companies were only good for about an hour and that is why the motion is fashioned that the General Manager needs to have the authority to sign the contracts the day of the bid. Ms. Snyder asked if the Citizens' Advisory Board (CAB) had already voted on this. Mr. Seldon replied, yes that the CAB had recommended that the RMLD Board accept the power supply strategy. Ms Snyder made a motion that the Reading Municipal Light Department Power & Rate Committee recommend to the RMLD Board of Commissioners to authorize the General Manager to execute one or more Power Supply Agreements in accordance with the RMLD's Strategic Power Supply Plan for the power supply purchases for a period not to exceed 2013 through 2016 in amounts not to exceed 28 MW in 2013, 22 MW in 2014, 21 MW in 2015, and 20 MW in 2016 as presented by the General Manager and Staff. Motion passed 3:0:0. At 6:59 p.m. Mr. Soli made a motion seconded by Ms. Snyder to adjourn. Motion carried 3:0:0.