Documents › Board Of Trustees, 2022-06-21

resolution 1 page

Also attached to this agenda item: 2022 Con Ed ESA Template 2022 Westchester Power Con Ed Extension MOU Revised... 2022 06 Westcheste Power Con Ed MOU 2022 06 20 Res 103-2022 CCA MOU 2022 Res 59-2022 Revised CCA MOU 2022

Dear Westchester Power Chief Electeds & Admins: We had hoped to be reporting a contract extension award made and alerting you all to impending digital contract signings. Unfortunately the energy market has continued its volatility as we collected the last MOUs. As seen in the chart below, the bids hit a high of almost 15 cents, significantly beyond our price-not-to-exceed target of 12.5 cents, Summary: 100% renewable (supply + RECs) cents/kilowatt-hour prices Bid # Pricing Date 3 Mo 4 Mo 5 Mo 6Mo 3/23/2022 11.64 11.76 3/30/2022 11.64 12.13 4/5/2022 12.86 13.08 14.01 4/6/2022 13.29 13.5 4/19/2022 14.99 We are checking day by day for favorable movement that would bring rates down into range however we have been advised that the market pricing is not likely to come down to our original price-not-to-exceed level. For this reason, we are requesting a revised MOU from each municipality with a new price-not-to-exceed 13.9 cents (please see attached). This higher price-not-to-exceed would provide more flexibility and increase the likelihood of continuity of service in the program while still allowing us to try to take advantage of any downturn in market pricing over the next two weeks. As we have noted, high natural gas prices are driving the market. The news continues to suggest nothing but upward pressure, but there can be movements within the larger pattern that might offer opportunities. There has been a modest downturn from a very extreme high in gas prices recently, as you can see in the graph below.