Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: June 22, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
rejecting any and all competitive proposals under RFP 7205 for Utility Scale Wind Energy for Denton
Municipal Electric; and providing an effective date (RFP 7205). The Public Utilities Board recommends
approval (5 - 0).
INFORMATION/BACKGROUND
City Council directed Denton Municipal Electric (DME) to evaluate the potential for adding utility scale
coastal energy in the renewable energy supply portfolio. RFP 7205 was proposed to acquire up to 75 MW
of coastal wind energy and capacity for five to fifteen years.
DME received 20 different offers from four (4) different wind farms of which two (2) were true coastal.
These offers consisted of a purchase agreement, where DME would receive wind energy, capacity, and
environmental attributes from the facility.
After evaluation of the offers, DME staff presented the results to City Council. The results showed that only
one offer was slightly “below market” contracts for power, meaning no extra expense to ratepayers above
what could be acquired in competitive bilateral markets. When Procurement reached out to the counterparty
to provide a best and final offer as requested by DME, they increased the price significantly. This increase
raised the offer to “above market” contracts for power. DME no longer considers the offer received from
this lowest price offered counterparty to be cost-effective. Consequently, staff recommends rejecting all
bids.
In accordance with the Local Government Code 252.043, the City Council may reject any and all bids.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 14, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Staff recommends rejection of all proposals for Utility Scale Wind Energy for Denton Municipal Electric.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Terry Naulty, 940-349-7565.
Legal point of contact: Marcella Lunn at 940-349-8333.