Committee approves hiring Essex Partnership to market hydroelectric facility power and RECs

The Administrative Services Committee authorized the mayor to sign a professional services agreement with Essex Partnership LLC to market power and renewable energy credits (RECs) from the city's high-dam hydroelectric facility.

City Engineer Jeff Hinderliter explained the city previously contracted with Grama Renewables (acquired by another company) to market power and sell RECs; after the acquisition the city lacked an active marketing agent. "We contacted ... Essex who acquired some of the employees that worked for [the prior firm] and we asked them each for a proposal to continue those marketing services," Hinderliter said. He told the committee the Essex proposal closely matched the prior contract and preserves the relationship with individuals who had been marketing the city's power.

Key contract terms presented in the packet and described in the meeting include a base compensation of $10,000 per month, a provision that reduces the monthly fee proportionally (down to half) in months when marketing cannot achieve a benchmark sale price (noted as $38.50/MWh), and a 5% performance incentive if sales exceed $1.5 million. Hinderliter said the work will aim to place RECs on the open market and that federal incentives tied to emerging clean-energy programs could extend the contract to match any multi-year federal incentive period. He said funding for the contract was already approved in the budget and that there is no additional budget impact in the current fiscal year.

Councilors moved and seconded the authorization and voted in favor. No amendments or public objections were recorded in the committee discussion.