3041_0.PDF

Contract Name: Natural Gas Supply & Management Contract Number: 15-40513-400

Date: December 26, 2013

CONTRACT USER’S GUIDE

Scope:

This is a mandatory contract to provide a reliable natural gas supply and management services for the facilities listed on pages 6 through 8.

The natural gas supply for the state’s locations shall be delivered on a secondary firm basis. Fixed basis pricing shall be provided for a 1year term.

Contract Term:

This contract has an initial term starting January 1, 2014 through December 31, 2014.

At the end of the initial contract period, Division of Facilities Development reserves the right to renew the contract for two (2) additional one (1) year terms, or re-bid upon completion of each one year term.

Under Wisconsin Statutes, the State is authorized to enter into contracts and extend those contracts to Wisconsin municipalities

Contract Audits and Credits:

The State reserves the right to audit any report submitted by the Contractor for accuracy and to identify any pricing problems. If pricing problems are identified by the DOA Contract Manager, the Contractor shall issue credits to DOA within thirty

(30) calendar days of notification of the problem.

Contract Flexibility

The State reserves the right to add/delete city gate delivery locations, change pipeline capacity requirements and end users during the contract term to meet the needs of the State. To make additions, the State shall adhere to the following procedure:

The location shall be offered to currently awarded contractors, beginning with the contractor with the lowest total delivered per dekatherms cost based on secondary firm capacity for the area associated with the location.

If no contractor accepts the location, the location shall be offered to all currently awarded contractors, and awarded to the lowest cost contractor willing to make delivery to that location.

FIRM PRICES:

Pricing must remain firm for the initial contract term.

At the end of the initial term, DOA/DFD will request a price quote for all locations for the 2nd term. The State shall be the sole judge as to continue this contract or rebid the contract in the best interest of the State.

The total Price Guarantee: The vendor shall guarantee the total cost stated for each area for the operating conditions stated.

PURCHASE ORDERS/INVOICES:

There shall be no formal Purchase Order Number issued for this contract. Use the contract number as the Purchase Order Number.

Contractor shall submit a copy of the original invoice to Division of Facilities Development.

TECHNICAL REQUIREMENTS

Account Management:

a. Vendor shall designate an account manager to provide natural gas management services. The account manager will serve as the State of Wisconsin’s point of contact for the vendor.

b. Bidder shall provide access to a secured web–based portal for the State to access all account specific information and reports.

Examples of accounts specific reports are:

i. Monthly analysis reports

ii. Daily usage histories

iii. Monthly usage and peak analysis

iv. Hedge positions

v. Budget/Spending reports

Examples of market based information shall include:

vi. Weekly Market summary

vii. Natural Gas Update

viii. Natural Gas Futures Update

ix. Historical NYMEX pricing

c. State if vendor provides annual energy conferences in Wisconsin covering the latest information on energy markets, regulatory and legislative changes and product /service developments. State if vendor provides live webinar presentations covering the latest information on energy markets, regulatory and legislative changes and product /service developments.

Customer Service:

a. Provide online account management information and access.

b. Vendor’s participation through phone or face to face meetings for quarterly review.

c. Provide 24 hours/day, 7 days/week availability.

d. Handling constraint days issued by the pipeline and the utility.

e. Bidder shall respond to all telephone, e-mail and FAX communications within

24 hours.

f. Awarded vendors shall provide emergency contact information. This information shall include the name of the contact person(s) and their telephone numbers.

g. News releases pertaining to the RFB or to the acceptance, rejection, or evaluation of bids shall not be made without the prior written approval of the State.

Delivery Options (secondary firm)

All facilities have alternate fuels capability.

Invoicing

a. A detailed and itemized invoice for each utility meter listing all transactions for the month. Itemized items shall include the following:

1) First of month spot price

2) First of month fixed price (commodity and/or basis)

3) End of month pricing for variances from first of month nominations.

4) Utility balancing and or cashout fees

5) Utility distribution fees

6) Any additional fees that may apply

b. State requires a single consolidated invoice detailing all natural gas supply and services for all state gas accounts served by the vendor.

c. All invoices shall be based on actual usage and not nominated usage.

Invoices should be received no later than the 10th business day of the month following delivery.

Natural Gas Management:

a) Provide established natural gas services to manage state’s risk and exposure to natural gas price volatility.

b) Manage imbalances by forecasting usage daily and adjusting deliveries accordingly based on the daily forecasts.

c) Vendor shall be responsible for monthly and daily nominations. State shall provide daily nominations to the vendor by the 20th day of the month before the delivery month.

d) In the absence of a specific nomination from the State, vendor shall establish monthly and daily nominations based on historical usage and current consumption rates.

e) Vendor shall be responsible for balancing all gas flows to ensure that the

State receives required natural gas supplies and to minimize balancing/cash out fees.

f) Vendor will not be permitted to suspend secondary firm deliveries of gas due to an economic constraint.

g) The State of Wisconsin has the ability to burn coal at some locations.

There may be times when it would be advantageous for the state to enter the daily market to buy or sell gas. Please explain your process for the state to buy or sell gas in the daily market and what costs would be passed on to the state.

Pricing:

a. All natural gas deliveries to the identified meters shall be secondary firm.

b. Utilization of available alternate fuels as a substitute for natural gas can be made due to pipeline and utility curtailment or constraint and not economic constraint.

c. Vendor shall provide NYMEX last day settlement (LDS) basis pricing.

d. The term to be provided is for January 1, 2014 through December 31, 2014.

e. Basis pricing shall be quoted using secondary firm capacity and shall include all costs to the city gate (i.e. fuel, taxes vendor margin). The vendor will use the load to quote provided by the state for each area. Other costs such as utility cashout and/or balancing and end of month pricing for variances for monthly nominated gas versus actual monthly consumption will be shown separately.

f. Identify & explain how all costs associated with utility or pipeline balancing/cash out are applied. Identify if vendor will be using pipeline or utility services for balancing or cashing out the states daily and monthly imbalances.

g. Identify any other costs, not identified above such as hedging, management fees, administration fees, and additional charges for consolidated billing, associated with services requested in this RFB that have not been covered elsewhere in this cost proposal.

h. Fixed: Shall mean a constant price portion of the contract term.

i. Vendor shall provide a monthly price confirmation by the 10th business day of the delivery month listing the first of the month price and volumes for each gas account served by the vendor.

j. Should the contractor’s cost decrease during the term of the contract, the contractor shall immediately notify the State. Such cost decreases shall become effective to the State the same date the decrease is effective to the contractor.

FACILITIES & LOCATION

FACILITY NAME LOCATION

1 Capitol Heat & Power Plant 624 East Main Street Madison, WI 53703

2 Central Services 201 S Thornton Avenue Madison, 53702

3 Hill Farms Heating Plant 4630 University Avenue Madison, WI 53702

4 Mendota Mental Health Institution 301 Troy Drive Madison, WI 53704

5 Oak Hill Correctional Inst. 5200, County Rd M Oregon, WI 53575

6 Prairie Du Chien Correctional Institution 500 Parish Street Prairie Du Chein, WI 53821

7 Waupun Correctional Institution 400 S. Drummond Street Waupun, WI 53963

8 UW - Green Bay 3260 Gershwin Lane Green Bay, WI3260

9 Green Bay Correctional Institution 2833 Riverside Dr.

Green Bay, WI 54301

10 Kettle Moraine Correctional Institution W9071 Forest Dr.

Kettle Moraine, WI 53010

11 Lincoln Hills Schools W4380 Copper Lake Ave Irma, WI 5442

12 Oshkosh Correctional Institution 1730 W. Snell Rd.

Oshkosh, WI 54901

13 UW - Oshkosh 1010 Woodland Ave Oshkosh, WI 54901

14 UW –Stevens Point 1925 Maria Dr.

Stevens Point, WI 54481

15 Winnebago Mental Health Institution 1305 South Dr.

Winnebago, WI 54985

16 UW-Parkside 900 Woodland Ave Kenosha, WI 53144

17 UW-Parkside Housing 4029 Outer Loop Rd.

Kenosha, WI 53144

18 Southern Wisconsin Center 2145 Spring St.

Union Grove, WI 53182

19 Racine Correctional Institution 2019 Wisconsin St # 2 Sturtevant, WI 53177

20 UW-Waukesha 1500 N. University Dr.

Waukesha, WI 53188

21 UW-Whitewater 734 W. Lauderdale Dr.

Whitewater, WI 53190

22 Wisconsin School for the Deaf 309 West Walworth Ave Delavan, WI 53115

23 Wisconsin School for the Visually Handicapped

1700 West State Street Janesville, WI 53545

24 UW-Milwaukee 3359 N. Downer Ave Milwaukee, WI 53201

25 Wisconsin Veterans Home N2665 County Road QQ King, WI 54946

26 Stanley Correctional Institution 35528 County Road X Stanley, WI 54768

27 Wisconsin Secure Program Facility 1011 Morrison Drive Boscobel, WI 53805-1000

28 Jackson Correctional Institution N6500 Haipek Rd Black River Falls, WI 54615

29 UW-Platteville Greenwood Ave Platteville, WI 53818

30 Columbia Correctional Institution 2925 Columbia Dr Portage, WI 53901

31 Fox Lake Correctional Institution W10237 Lake Emily Road Fox Lake, WI 53933

32 New Lisbon Correctional Institution 2000 Progress Road New Lisbon, WI 53950

33 Sand Ridge Secure Treatment Center 1111 North Rd.

Mauston, WI 53948

34 Taycheedah Correctional Institution N7139 Cty. Hwy. K Fond du Lac, WI 54935

35 UW - Eau Claire 522 W Clairemont Ave.

Eau Claire, WI 54701

36 Northern Wisconsin Center 2820 E. Park Ave Chippewa Falls, WI 54729

37 UW - La Crosse 1725 State Street La Crosse, WI 54601

38 University of Wisconsin-Platteville Greenwood Ave Platteville, WI 53818

39 University of Wisconsin-River Falls 410 South 3rd St.

River Falls, WI 54022

40 UW - Stout 9th Avenue & 3rd Street Menomonie, WI 54751

41 UW - Superior 1800 Grand Avenue Superior, WI 54880

42 Racine County Court House 730 Wisconsin Ave, Racine, WI 53403

43 Ridgewood Health Care Center 3205 Wood Rd, Racine, WI 53406

COOPERATIVE PURCHASING:

Following vendors have agreed to participate in Cooperative Purchasing program:

CenterPoint Energy Services Inc. Constellation New Energy-Gas Division.

800 La Salle Street N21 W23340 Ridgeway Pkwy

Minneapolis, MN 55402 Waukesha, WI 53188-1019

Attn: Pat L’H Eurerux Attn: Virginia Wilson

Telephone 612-321-4672 Telephone: 262-506-6609

Fax #: 612-321-4622 Fax #: 262-506-6611

FEIN #: 72-1309319 FEIN #: 23-2990190

e-mail: pat.lheuneux@centerpointenergy.com e-mail Virginia.wilson@constellation.com

Twin Eagle Resource Management LLC Integrys Energy Services

100 West Lawrence Street, 2nd Floor 124 West Broadway, Suite 300

Appleton, WI 54911 Madison, WI 543716

Attn: Dawn Stein Attn: Mark Rundle

Telephone: 920-831-2527 Telephone: 608-22171109

Fax #: 920-831-2551 Fax #: 608-221-1175

FEIN # : 39-3631224 FEIN # : 39-1802356

e-mail: dawn.stein@termna.com e-mail: dawn.stein@termna.com