Cost_Formula-reward_average_cost_for_RFP.docx

This file is a cost formula reference document supporting an electricity supply RFQ/RFP issued by the City of New Haven, Connecticut. The City seeks competitive proposals for multi-year retail electric supply to municipal accounts, including schools, public safety operations, and major municipal buildings, with an estimated annual usage of 46,000 MWh. The contract will commence on July 1, 2026, with an initial term of 60 months from the meter read date. Qualified suppliers must meet minimum qualifications outlined in the Statement of Qualifications and receive City approval before submitting price proposals in Phase 2 of the procurement process. The procurement is structured as a two-phase process requiring prequalification and acceptance of the City's Standard Terms before price offer submission.

The cost formula document details the "Reward Low Cost" scoring methodology, which calculates proposal point values using the equation: Lowest overall cost divided by the proposal's cost equals the percentage of possible points awarded. Under this formula, the lowest-cost proposal receives the maximum points available, while higher-cost proposals receive proportionally fewer points based on their cost relative to the lowest bid. The procurement objectives include securing competitive pricing, reducing rate volatility, complying with Connecticut clean energy goals, and leveraging modern energy data and reporting capabilities. The selected supplier(s) will be responsible for delivering energy and ensuring compliance with all relevant standards and regulations applicable to municipal electric service.