CONTRACT USER guide 2017 All areas secondary firm.pdf

Contract Name: Natural Gas Supply & Management Contract Number: 505ENT-M16-NATURALGASWI-00

Date: December 21, 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 pages 7 through 9.

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 1 year term.

Contract Term:

This contract has an initial term starting January 1, 2017 through December 31, 2017.

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 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 cash out 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.

h) UW Madison (Charter and Walnut Street Heating Plants):

UW Madison purchases steam from the West Campus Cogeneration Facility (WCCF) primarily during the months of January, February, March, April, October, November and December. The amount of steam purchased may be as much as 50% of the plant’s production for a day or about 5,000 dth of natural gas per day. The load profile provided to quote does not include the effect of steam purchases from WCCF.

The WCCF unit is dispatched daily by MISO as a peaking unit, and when this unit is on line, UW Madison purchases steam from WCCF. The State of Wisconsin will provide notice when WCCF is expected to run and how much steam UW Madison will purchase for a given gas day.

The notice provided by the State of Wisconsin may be day ahead or day of consumption. Notice for a given day may change multiple times based on MISO dispatching.

The vendor shall be responsible to handle intraday nominations and changes in gas forecasts/nominations`` on short notice. Vendor must have the capability to balance, reduce /increase gas deliveries on short notice and handle large gas variances between both Walnut and Charter Street heating plants and the rest of the State of Wisconsin accounts behind Madison Gas & Electric.

There may be times when UW Madison is shut down for a short period (one or more months) and the vendor may be required to sell the State of Wisconsin’s fixed price basis positions.

UW Madison, Walnut Street Heating Plant (WSHP) is expected to operate in hot standby and not as a baseload plant. Based on operational needs this may change and the Vendor shall be expected to provide natural gas on short notice.

Pricing:

a. All natural gas deliveries to the identified meters shall be secondary firm or interruptible when secondary firm is not available with the exception of Prairie Du Chien Correction Institution where 19 MMBtu/day of primary firm capacity at the Prairie Du Chien city gate is required.

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

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

d. The term to be provided is for January 1, 2017 through December 31, 2017.

e. Basis pricing shall be quoted using secondary firm or interruptible capacity when secondary firm is not available 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 cash out 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.

k. Vendor shall provide one cash out price for all facilities included in the State of Wisconsin Natural Gas Supply and Management Services Contracts located behind the same utility and pipeline.

FACILITIES & LOCATION

Area 1: Utility: MG&E Pipeline(s): ANR, NN

LOCATION

1 Capitol Heat & Power

624 East Main Street, Madison, WI 53703

2 Hill Farms

4630 University Avenue, Madison, WI 53702

3 Oak Hill Correctional Institution

5200, County Rd M, Oregon, WI 53575

4 Mendota Mental Health Institution

301 Troy Drive, Madison, WI 53704

5 UW Madison – Charter Street

117 N. Charter St, Madison, WI 53715

6 UW Madison – Walnut Street

505 Walnut St. Madison, WI 53705

Area 2: Utility: MG&E Pipeline(s): NN

7 Prairie du Chien Correctional Institution

500 Parish Street, Prairie Du Chien, WI 53821

Area 3: Utility: WPS Pipeline(s): ANR, Guardian

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 54442

12 UW-Oshkosh

1010 Woodland Ave, Oshkosh, WI 54901

13 Oshkosh Correctional Institution

1730 W. Snell Rd. 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 Sanger Power Correctional Center

N8375 County Line Road, Oneida, WI 54155

17 UWC Marathon County

518 South 7 th Avenue, Wausau, WI 54401

Area 4: Utility: WEGO Pipeline(s): ANR, Guardian, NN

18 UW-Parkside

900 Woodland Ave, Kenosha, WI 53144

19 UW-Parkside Housing

4029 Outer Loop Rd. Kenosha, WI 53144

20 UW-Whitewater

734 W. Lauderdale Dr. Whitewater, WI 53190

21 Southern Wisconsin Center

2145 Spring St. Union Grove, WI 53182

22 Racine Correctional Institution

2019 Wisconsin St # 2, Sturtevant, WI 53177

23 Racine County Court House

730 Wisconsin Ave. Racine, WI 53403

24 Racine County Jail

717 Wisconsin Avenue, Racine, WI 53403

25 Racine County Ridgewood Health Care Center

3205 Wood Rd. Racine, WI 53406

26 Wisconsin School for the Deaf

309 West Walworth Ave. Delavan, WI 53115

Area 5: Utility: WGC Pipeline(s): ANR, Guardian, NN

27 UW-Milwaukee

3359 N. Downer Ave. Milwaukee, WI 53201

28 Wisconsin Veterans Home

N2665 County Road QQ, King, WI 54946

29 Stanley Correctional Institution

35528 County Road X, Stanley, WI 54768

30 Redgranite Correctional Institute

1006 County Road EE, Redgranite, WI 54970

Area 6: Utility: WGC Pipeline(s): NN

31 Wisconsin Secure Program Facility

1011 Morrison Drive, Boscobel, WI 53805-1000

32 Jackson Correctional Institution

N6500 Haipek Rd. Black River Falls, WI 54615

Area 7: Utility: Alliant Pipeline(s): NN

33 UW-Platteville

Greenwood Ave. Platteville, WI 53818

34 Columbia Correctional Institution

2925 Columbia Dr. Portage, WI 53901

35 New Lisbon Correctional Institution

2000 Progress Road, New Lisbon, WI 53950

36 Sand Ridge Secure Treatment Center

1111 North Rd. Mauston, WI 53948

Area 8: Utility: Alliant Pipeline(s): ANR

37 Fox Lake Correctional Institution

W10237 Lake Emily Road, Fox Lake, WI 53933

38 Taycheedah Correctional Institution

N7139 City. Hwy. K, Fond du Lac, WI 54935

39 Waupun Correctional Institution

400 S. Drummond Street, Waupun, WI 53963

40 Wisconsin School for the Visually Handicapped

1700 West State Street, Janesville, WI 53545

Area 9: Utility: Xcel Pipeline(s): NN

41 UW-La Crosse

1725 State Street, La Crosse, WI 54601

Area 10: Utility: Xcel Pipeline(s): Viking

42 UW-Eau Claire

522 W Clairemont Ave. Eau Claire, WI 54701

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

44 Northern Wisconsin Center

2820 E. Park Ave, Chippewa Falls, WI 54729

Area 11: Utility: SWL&P Pipeline(s): NN

45 UW-Superior

1800 Grand Avenue, Superior, WI 54880

Area 12: Utility: St. Croix Gas Pipeline(s): NN

46 UW-River Falls

410 South 3 rd

ST. River Falls, WI 54022

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: Jon Otto

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 jon.otto@constellation.com

Constellation Energy Services –Natural Gas LLC

124 West Broadway, Suite 300

Madison, WI 543716

Attn: Mark Rundle

Telephone: 608-22171109

Fax #: 608-221-1175

FEIN # : 39-1802356

e-mail: marundle@constellation.com