CONTRACT USER guide 2016-2017-1 All areas firm.pdf

Contract Name: Natural Gas Supply & Management Contract Number: 505 ENT M16-NATURALGASWI-01

Date: December 29, 2016

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 page 6.

The natural gas supply for the state’s locations shall be delivered on a primary firm basis. Fixed basis pricing shall be provided for a 1year term form April 1, 2017 through March 31, 2018.

For selected five locations (23-27) within Area 16, the fixed basis pricing shall be provided for a 5 month term starting on November 1, 2016 through March 31, 2017.

Contract Term:

Initial contract terms are for twelve (12) and five (5) months.

At the end of the initial contract period, Division of Facilities Development reserves the right to renew the contract for four (4) 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 primary 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 areas 13, 14, 15, 16 and 17 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 (primary firm)

The State may require that the bidder provide contract documentation for primary firm capacity with the pipeline for the respective city gate.

A daily primary firm level as shown in the original bid data usage sheet for the respective area’s utility city gate

Area 13 = 382 DTH , Area 14= 417 DTH, Area 15- 65 DTH , Area 16 = 226 DTH, Area 17 = 406.

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. Provide balancing and cash out by LDC pool or pipeline pool where applicable.

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

d. Vendor shall be responsible for monthly and daily nominations. State shall provide daily nominations to the vendor when requested by the vendor.

e. 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.

f. 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.

Pricing:

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

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

c. Pricing for the initial term to be provided for Area(s) 13, 14, 15, 16 and 17 is for April 1, 2017 through March 31, 2018.

d. Primary firm capacity will be to the respective facility utility city gate (s) or to the operating system that services the facility. For all load profile, bid price shall include all costs to the city gate (i.e. fuel, taxes vendor margin).

e. 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 fixed price fees, 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

FACILITIES LOCATION

AREA 13, UTILITY WGC, Pipeline(s) NN, ANR

1 UW Milwaukee Cambridge Commons 2323 N Cambridge Ave. Milwaukee, WI

2 UW Washington County 400 S University Dr. West Bend, WI

3 UW Milwaukee Kenilworth Square Apartments 1915 E Kenilworth PL, Milwaukee, WI

4 UW Milwaukee Riverview Residence Hall 2340 N Commerce St, Milwaukee, WI

5 UW Milwaukee Services & Research Center 115 E Reindal Way, Milwaukee, WI.

6 UW Marshfield/Wood County Main Building 2000 W 5th St, Marshfield, WI

7 UW Marshfield/Wood County 2000 W 5th St, Marshfield, WI

8 Felmer Chaney Correctional 2825 N. 30th St. Milwaukee WI

9 Marshall Sherrer Correctional 13118 N 14th St. Milwaukee, WI

10 Milwaukee Women’s Correctional 615 W. Keefe Ave. Milwaukee, WI

11 Great Lakes Water Institute 600 E. Greenfield Ave, Milwaukee, WI

AREA 14, UTILITY WEGO, Pipeline(s) NN, ANR

12 Racine Youthful Offender Correctional Facility 1501 Albert St, Racine, WI

13 Sturtevant Transitional Facility 9351 Rayne Rd, Sturtevant, WI

14 UW Waukesha 1500 N University Dry, Waukesha, WI

15 Waukesha State Office Bldg. 141 NW Barstow St. Waukesha, WI

16 Kenosha Correctional 6353 14th Ave. Kenosha, WI

17 UW Fox Valley 1478 Midway Rd. Menasha, WI

18 Racine County Public Works 14200 Washington AVE. Sturtevant, WI

19 Racine County Human Service 1717 Taylor Ave. Racine, WI

AREA 15, UTILITY ALLIANT, Pipeline(s) NN, ANR

20 UW Rock County 2909 Kellogg Ave, Janesville, WI

AREA 16, UTILITY WPS, Pipeline(s) ANR

21 Drug Abuse Correctional Center 4280 N Sherman Rd, Winnebago, WI

22 Winnebago Correctional Center 4290 N Sherman Rd, Winnebago, WI

23 UW Sheboygan – Fine Arts. 1 University DR. Main Bldg., Sheboygan, WI

24 UW Sheboygan – Main Bldg. 1 University DR. Main Bldg., Sheboygan, WI

25 UW Sheboygan – Science 1 University DR. Main Bldg., Sheboygan, WI

26 UW Marinette - Campus 750 W Bay Shore St Campus, Marinette, WI

27 UW Marinette - Gym 750 W Bay Shore St Campus, Marinette, WI

AREA 17 UTILITY MG&E, Pipeline(s) NN, ANR 28 Dept. of Administration ( DATCP) 2811 Agriculture Dr. Madison, WI

29 Dept. of Administration ( Hygiene Lab) 2601 Agriculture Dr. Madison WI 2811Agriculture Dr. Madison, WI

30 Oak Hill correctional Institution (Firm meter) 5200 County Rd M 10, Oregon WI

31 Oregon Correctional Center 5140 County Rd, M HM, Oregon WI

32 UW Madison- East Campus Mall 30 East Campus Mall, Madison, WI

33 Wisconsin Dept. of Transportation 3502 Kinsman BL. Madison, WI.

34 Wisconsin Dept. of Revenue 213 Rimrock Rd, Madison WI

COOPERATIVE PURCHASING:

The following vendors have agreed to participate in Cooperative Purchasing program:

Twin Eagle Resource Management LLC CenterPoint Energy Services Inc.

100 West Lawrence Street, 2nd Floor 800 La Salle Street

Appleton, WI 54911 Minneapolis, MN 55402

Attn: Dawn Stein Attn: Pat L’H Eurerux

Telephone: 920-831-2527 Telephone 612-321-4672

Fax #: 920-831-2551 Fax #: 612-321-4622

FEIN # : 39-3631224 FEIN #: 72-1309319

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

pat.lheuneux@centerpointenergy.com