| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | Agenda Title:
Council action is requested to expend $1,060,000 with Tenaska for Energy Services and Energy Data Management services for the Power & Light Department for fiscal year 2024. |
| | | | | | | | Recommendations:
Council approval for expenditure. |
| | | | | | | | Background:
Independence Power & Light (IPL) has a service agreement with Tenaska that goes until March 2026. Under this agreement, IPL pays a monthly service fee of $30,000 per month. The total yearly service fee is $360,000. There is a portion of the annual expenditure that represents repayment to Tenaska for payment to the IPL agreement where they market unused Auction Revenue Right/Transmission Congestion Rate (ARR/TCR) assets in the Southwest Power Pool (SPP) market. Under this agreement, IPL splits the proceeds with 65% to IPL and 35% to Tenaska for any revenue IPL receives from SPP under this agreement. Last year, IPL had to reimburse Tenaska nearly $640,000 under this agreement. This year, IPL is increasing the amount for the reimbursement to $700,000 in anticipation for additional revenue recovery. This is done as a revenue offset. The total amount for the expenditure request is $1,060,000.
Approval of this item authorizes the Finance Director to issue change orders up to a total of ten (10) percent of the original authorized amount, so long as appropriations are available.
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Fiscal Impact:
The fiscal impact to the City is $1,060,00.00. Funding for Energy and Energy Data Management Services is included in the fiscal year 2023-2024 proposed budget, page 235, account number (6145-5226) Professional Services for $360,000 and page 66 IPL Revenue (020-4912) Transmission Wheeling Revenue - MPS for $700,000.
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| | | | | | | | | Department: Power & Light | Contact Person: James Nail |
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| REVIEWERS: | | Department | Action | | Purchasing Division (Finance Department) | Approved | | Power and Light Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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