Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
CFO: Cassey Ogden
DATE: December 13, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
rejecting any and all competitive bids under RFP 8100, for Utility Scale Solar and/or Wind Energy for
Denton Municipal Electric; and providing an effective date (File 8100).
INFORMATION/BACKGROUND
To continue 100% renewable objectives, Denton Municipal Electric (DME) issued RFP 8100 to evaluate
adding further utility scale solar and/or wind energy to the renewable energy supply portfolio. RFP 8100
proposed to acquire up to 225 MW of solar and/or wind energy and capacity for a potential contract period
between ten and twenty years.
DME received offers from two (2) different responders, comprising one wind farm proposal and two solar
proposals. The proposals consisted of a power purchase agreement ‘PPA’, where DME would receive
energy, capacity, and environmental attributes from the facility as produced, for the duration of the term.
Consistent with the terms of the RFP, DME has the right to reject bids for any reason. For this procurement,
the economic impact associated with the responses received is unacceptable and the response proposed
project start dates do not meet the RFP requirements. Volatile and high-priced energy markets have recently
been falling in US markets, which may not be reflected in current bid proposals. Due to the anticipated
economic outcomes of responses received and their locations and proposed dates of operation, staff
recommends rejecting any and all bid proposals.
Staff will reissue RFP(s) seeking separate proposals for coastal/south wind, solar and solar with storage,
with planned commercial operation start dates no later than 2026 as soon as possible.
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 December 12, 2022, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Staff recommends rejection of all proposals under RFP 8100 for Utility Scale Solar and/or Wind Energy.
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.