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Electric Aggregation Consulting ServicesILLINOIS COMMUNITY CHOICE AGGREGATION NETWORK COMMUNITY ENERGY PROCUREMENT & PLANNING April 23, 2017 T0: Rama Serences, Senior Purchasing Assistant, Village of Oak Brook FROM: Mark Pruitt, ICCAN SUBJECT: Engagement letter for aggregation and commercial electricity procurement Thank you for this opportunity to outline how the Illinois Community Choice Aggregation Network (ICCAN) can assist the Village of Oak Brook in acquiring electricity supply pricing for residents and Village facilities. Background. Electricity consumers served by Commonwealth Edison (ComEd) have the option of securing electricity supplies from retail electricity suppliers, which secure electricity on the wholesale market and arrange for its delivery through the local utility company. Depending on market conditions, retail electricity suppliers can provide electricity pricing that is lower than that offered by ComEd. The Village of Oak Brook is a municipality that has been granted authority from its residents to operate a municipal aggregation program whereby the Village may select a retail electricity supplier on behalf of its residents. The Village has exercised its aggregation authority in the past, and has a current supplier agreement that expires in June of 2017. Also, the Village has a number of non-residential accounts with Commonwealth Edison which are served by a separate retail electricity supplier. ICCAN is an energy consulting firm with a focus on energy procurement and planning for municipal aggregations and small commercial accounts. ICCAN advises over 60 communities in Illinois that operate municipal aggregation programs (municipal aggregation is the pooling of residential and small commercial accounts at the municipal level for electricity purchasing) — including the City of Chicago. ICCAN is interested in serving the Village as its electricity consultant. Proposed Scope of Services. ICCAN proposes to provide the Village with the following services: Municipal Aggregation. ICCAN will perform the following functions related to potentially engaging a retail electricity supplier for the Village's aggregation program. o Plan of Governance. ICCAN will work with Village management to review the Village's Plan of Governance is consistent with current regulations. o Solicitation. ICCAN will draft and issue (with the Village's approval) a solicitation requesting price offers from qualified retail electricity suppliers for various time periods. o Score & Recommend. ICCAN will score responses to the Village's solicitation and recommend whether any offers should be considered by the Village. o Negotiation & Enrollment. ICCAN will assist the Village and any selected retail electricity supplier in negotiating a final agreement and drafting consumer communications concerning program enrollment. 10 WEsi 35 "' Si@IA 1, Slnrr 1600 CHICAGO, ILLINOIS 60616 219-921-3828 o Other Advisory. ICCAN will assist management of the Village with the following services. • Energy Efficiency. ICCAN will identify energy efficiency grants from ComEd that can provide discounts for cost-saving products (e.g., lighting, thermostats) and services (e.g., Peak Time Rebates, data monitoring). Commercial Accounts. ICCAN will perform the following functions related to potentially engaging a retail electricity supplier for the Village's own commercial accounts. o Solicitation. ICCAN will draft and issue (with the Village's approval) a solicitation requesting price offers from qualified retail electricity suppliers for various time periods. o Score & Recommend. ICCAN will score responses to the Village's solicitation and recommend whether any offers should be considered by the Village. Negotiation & Enrollment. ICCAN will assist the Village and any selected retail electricity supplier in negotiating a final agreement. Engagement Term & Cost Estimate. ICCAN proposes an initial engagement to provide services to the Village for a twelve (12) month period. The engagement can be terminated by management of the Village o with thirty (30) days' notice, and the engagement can be extended for any length of time with the approval of both parties. Aggregation Program. ICCAN will provide all procurement services noted above for a fee not to exceed $750 for the initial term of the engagement. This cost will be applicable regardless of whether a supplier is selected. The Village may choose to allow any supplier selected through the procurement process to pay ICCAN on the Village's behalf. • Commercial Accounts. ICCAN will provide all procurement services noted above for a fee not to exceed $500 for the initial term of the engagement. This cost will be applicable regardless of whether a supplier is selected. The Village may choose to allow any supplier selected through the procurement process to pay ICCAN on the Village's behalf. If the above arrangements are acceptable, we can proceed with the execution of this document by both parties. Please contact me directly at any time to discuss this or any other energy issues. Village of Oak Brook Illinois Community Choice Aggregation Network Si nature: Signature: Name: ; Name: Mark Pruitt Position: Position: Principal Date: Date: April 23, 2017 It I ISOIS ('o% V I m I Y C11GI('E A(ju RLOA f L09 NF TUOR6 10 WLST 35"' SIRE. LI, SLE 1600 CHICAGO, ILI wGIS 60616 219-921.3828 MARK J. PRUITT 416 South Third Street, Chesterton, Indiana 46304 • (219) 921-3828 • markjpruitt@gmail.com ENERGY CONSULTANT 20+ year track -record in energy project development, commodity procurement, and utility regulation. Strategic negotiator with ability to develop mutually beneficial agreements between stakeholders with conflicting agendas in complex industries. Well-developed management and communication skills with a reputation for credibility and integrity. Thrives in both independent and team work environments. Core Knowledge and Skill Areas Wholesale & retail energy commodity transactions Strategy development & implementation Generation & efficiency technologies Statistical modeling & financial analysis Alternative project finance structures Negotiations & settlement fulfillment Procurement & sourcing processes Legislative and regulatory processes Renewable portfolio standards Program design and roll-out PROFESSIONAL EXPERIENCE PRINCIPAL, The Power Bureau/ICCAN, Chicago, Illinois October 2011 to Present Consulting groups providing energy planning and procurement services to small and mid-sized organizations. Established specialty consulting practice focused on reducing energy costs and price risks for small and mid-sized consumers. Optimizing existing regulations and market structures to reduce costs and increase optionality. Developing new opportunities by repositioning energy commodity operations from a static cost -center to a risk -management tool that protects client interests. Challenge Planning Strategic Sourcing Asset Leveraging Market Monitoring Positioning retail consumers to capture the benefits available in wholesale power markets. • Drafting and implementing energy procurement and asset development plans to secure market value, investment returns, and organizational goals. • Maximizing benefits of Municipal Aggregation for villages, towns, and counties through procurement methods that reduce transaction premiums • Positioning retail electric consumers as wholesale market participants • Internal process and governance evaluation • Creating alliances among existing market participants to foster development of generation, efficiency and demand response products that deliver consumer value. • Intervening in regulatory proceedings and drafting state legislation • Modeling market price patterns to identify purchasing and selling opportunities DIRECTOR, Illinois Power Agency, Chicago, Illinois April 2008 to October 2011 State agency chartered to reduce and stabilize consumer electricity costs. Recruited to build a new state agency tasked with reversing substantial price increases resulting from electric deregulation. Delivered and gained regulatory approval for statewide electric procurement plans valued at over $5.3 billion in an uncertain environment dominated by influential political and business entities with adversarial relationships (Utilities, Commerce Commission, Attorney General, and Consumer Advocate). Maintained responsibility for planning and oversight of statewide carbon sequestration, renewable portfolio standard compliance, and synthetic natural gas developments. Challenge Satisfy competing policy interests while reducing consumer costs. Fulfill aggressive and expanding mandates during a period of severe resource restrictions. Vision • Guided stakeholders in formulating new policies to repositioned default supply electricity purchasing Planning as an actively managed portfolio with cost containment, flexibility and stability as primary values. Mission • Delivered $1.6 billion in electricity cost reductions to Illinois consumers. Fulfillment • Introduced procurement planning techniques and adapted solutions to specific market conditions resulting in a balanced portfolio to limited year -over -year price volatility. Change • Articulated clear objectives and plans to legislators, interest groups, and regulators in public hearings Management and private meetings to achieve policy consensus. Led consistent and fair negotiations that dramatically enhanced success in transaction efforts. Market • Re-established Illinois as a leading marketplace for electricity transactions by generating solutions to Positioning the consumer cost issue without undermining competitive markets. • Led regional developers and utilities to secure $2.6 billion in renewable energy project funding with 20 -year power purchase agreements at historically low market rates. Spearheaded initiatives to support coal gasification projects valued at $10 billion. ♦11♦ SENIOR PROGRAM MANAGER. University of Illinois Chicago, Illinois 2002-2008 Energy commodity procurement program for state agencies and municipalities. Selected to restructure operational functions and reverse losses of small commodity procurement program; following successful achievement of immediate objectives, was promoted in 2004 to assume full P&L responsibility for the unit, overseeing marketing, development and roll-out of new services, and administrative functions. Challenge Bottom Line Improvements Operations Improvement and Expansion Team Development Improve program value for customers while reversing program losses. • Ramped program from net loss to profitability, increased book of business from $2 to $65 million, tripled net program income, and limited administrative costs to 20% total growth. • Secured 25% cost savings for participants while reducing price volatility by 20%. • Restructured procurement events around common credit terms, conditions, and metrics. • Expanded program from 4 to 39 state agencies and 12 municipalities. • Captured new customer base by expanding into deregulated electricity markets. • Led a comprehensive review of the University's energy operations to evaluate competitiveness of campus power plants and utility cost allocation methods. • Toured customer facilities with management team to promote need for change, assure services value, and monitor key metrics. PROJECT DEVELOPER, Nicor Energy Solutions. Naperville, Illinois 2000-2002 Regional provider of energy management solutions and services Contributed to team development of projects financed through alternative mechanisms including federal Super Energy Services Performance Contract, Utility Energy Services, and Enhanced Use Leasing. Revenue • Standardized project evaluation and proposal formats to increase bid throughput by 15%. Growth • Coordinated the successful $14 million Phase 2 energy services contract proposal for the US Department of Energy Fermi National Laboratory. Process Design Led integration of third party vendors into project development and cross -marketing sales processes; methods developed were replicated for additional partnership initiatives. GENERAL MANAGER, Midwestern Energy Consultants Maryland Heights Missouri 1994-2000 Provider of energy efficiency and security glass coatings. Converted a glazing company operating in the small-scale residential sector to a commercially -oriented glass safety and security provider. Managed budget planning, sales, staffing, contract negotiations, supplier relations, project management and administrative functions. Performance • Increased year -over -year sales revenues by 9-20% on increased margins, countered seasonality in earnings cycle through expanded customer base and integrated scheduling. Positioning • Redirected marketing focus from residential to commercial and institutional; supported by customer research, expanded product lines to include security and safety solutions. DISTRIBUTION MANAGER, Midwest Energy Resources, Mundelein Illinois 1990-1994 Distributor of 3M insulation, glazing and lighting efficiency products. Developed and serviced a network of 3M energy product dealerships in Illinois, Indiana, Iowa, and Missouri. Drafted and evaluated business start-up and expansion plans for dealer network members. Financial Delivered year over year revenue growth of 8-10% and increased share of market in key primary Performance markets throughout region by guiding dealers into commercial applications. University OF ILLINOIS, Chicago, Illinois Master of Business Administration EDUCATION OTHER ACTIVITIES BRADLEY University, Peoria, Illinois Bachelor of Arts • Instructor, Masters of Energy Engineering Program, University of Illinois • Judge, Clean Energy Challenge, Clean Energy Trust • Mentor, Cleantech Open