Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - June 17, 2014
REVISED June 17, 2014 - Regular Meeting
Agenda Item #54

Natural Gas Agreement and Commercial/Industrial Demand Reduction Rider Agreement as part of the FPLS Energy Performance Contracting Services Agreement No. 13-2896FL


Contact and/or Presenter Information

Margaret Daniell, Senior Fiscal Services Manager, Property Management, extension 3009

David Thompson, Building Management Division Manager, Property Management, extension 3016

Action Requested
Execution of Natural Gas Sales Agreement with FPL Energy Services, Inc.; Execution of Commercial/Industrial Demand Reduction Rider Agreement as required under the FPLS Guaranteed Energy Performance Contracting Services Agreement No. 13-2896FL for guaranteed savings.

Enabling/Regulating Authority

Florida Statute 489.145, Guaranteed Energy, Water and Wastewater Energy Savings Performance Contract 

Florida Statute 287.055, Consultants Competitive Negotiation Act

Florida Statute 125, County Government

Background Discussion

The FPLS Natural Gas Sales Agreement will allow the county to purchase natural gas as a commodity separate from the cost to build and maintain the pipe and metering infrastructure operated by the Local Distribution Company (LDC), which, in this case, is TECO/People Gas.  By separating these components of the natural gas bill, the county is able to more directly benefit from the purchasing power and pricing benefits available from FPLS.  The County will see separate invoices monthly (one from TECO/People Gas for distribution services and one from FPLS for natural gas commodity) and will realize savings immediately.

The Commercial Demand Response Rate Agreement concerns three facilities; Public Safety, Administration, and DeSoto.  These are slated to change from a standard monthly demand/energy electric rate to a rate that offers monthly credits by taking advantage of the existing generator capacity.  Automated transfer equipment will be connected to these generators to allow FPL, with prior notice to staff, to transfer the building electric service to the generator.  This transfer allows the utility to maintain grid effectiveness in the event of unforeseen failure to primary generation infrastructure or short term weather-related system peaks.  The agreement is a Public Service Commission approved document that allows the county to take advantage of this rate.  Once signed, we will implement minor controls and electrical upgrades to accommodate transfer and staff notifications before the rate will take effect and savings are realized.

County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other

Reviewing Attorney

Instructions to Board Records
Please return the original executed agreements to Margaret Daniell, 1112 Manatee Avenue West, Suite 802, Bradenton, Florida 

Cost and Funds Source Account Number and Name

Amount and Frequency of Recurring Costs

Attachment:  Natural Gas Agreement.pdf
Attachment:  Administration Building Demand Reduction Agreement.pdf
Attachment:  DeSoto Building Demand Reduction Agreement.pdf
Attachment:  Public Saftey Building Demand Reduction Agreement.pdf