HomeMy WebLinkAboutMT League of Cities & Towns (2)Montana League of Cities and Towns
P.O. Box 1704 - Helena, Mt 59624
406 442-8768 (Phone)
406 442-9231 (Fax)
Memorandum
To: Participants in the Power Supply Program
From: Alec Hansen
Subject: Prorated Share of Legal and Consulting Costs
Date: August 10, 2000
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The 22 cities and towns that are participating in the power supply program offered by
Energy West Resources through the League will save nearly $97,000 on the cost of
electrical service over the next two years. These savings come from the 2.2% positive
margin between the averaged regulated rate for electricity and the price offered by
Energy West. Montana Power charges a variable rate that is lower in the summer and
higher in the higher demand winter months. This program provides a flat rate, which has
the effect of reducing savings for cities and towns that have proportionally higher energy
usage in the summer months.
Under the contract, cities and towns agreed to reimburse the League for the consulting
and legal costs incurred in negotiating this deal. We estimate these costs at $5,000, and
we are assessing the fees as a pro rata share of $97,000 in savings participants in the
program will realize over the next two years. We suggest that you verify your savings
and administrative fee on the attached spreadsheet. Finally, we ask you remit the amount
on the separate invoice to the League of Cities and Towns to cover your share of the costs
of negotiating this deal.
School districts across Montana are partners with cities and towns in this power supply
agreement. We have aggregated a large and balanced combination of loads: We have
also acquired valuable experience, and should be in a position to arrange the best possible
rates for cities and schools when the electrical energy market in Montana is fully
deregulated in less than two years.
I thank you for working with the League on this important and very interesting project.
Best wishes,
Alec Hansen
Executive Director
SHARED COST SUMMARY SUMMARY OF CONTRACT RESULTS
Section 5 S of Agency Agreement
Annual Two Yr Contract Share of
CITY I TOWN Pro Rata Share of Cost Est Supply Est Supp ly Savings
Kwh (Kwh) Savings Savings
Butte Silver Bow 0.1973 $ 986.34 $ 12,240 $ 24,480 0.2526
City of Belgrade 0.0018 $ 8.85 $ 100 $ 201 0.0021
City of Billings 01734 $ 866.87 $ 8,735 $ 17,470 0.1803
City of Bozeman 0.0780 $ 390.14 $ 5,631 $ 11,261 0.1162
City of Conrad 0.0059 $ 29.55 $ 142 $ 284 0.0029
City of Deer Lodge 0.0120 $ 59.97 $ 119 $ 237 0.0024
City of Glasgow 0.0211 $ 105.37 $ 1,124 $ 2,248 0.0232
City of Great Falls 0.1629 $ 814.31 $ 872 $ 1,743 0.0180
City of Harlem 0.0052 $ 2613 $ 384 $ 769 0.0079
City of Havre 0.0583 $ 291.44 $ 3,328 $ 6,656 0.0687
City of Helena 0.0886 $ 443.02 $ 6,445 $ 12,891 0.1330
City of Malta 0.0092 $ 45.80 $ 709 $ 1,418 0.0146
City of Missoula 0.0832 $ 415.80 3 3,616 $ 7,233 0.0746
City of Three Forks 0.0035 $ 17.70 $ 196 $ 393 0.0041
Town of Cascade 0.0031 $ 15.42 $ 114 $ 229 0.0024
Town of Darby 0.0042 $ 21.04 $ 148 $ 295 0.0030
Town of Manhattan 0.0021 $ 10.72 $ (27) $ (54) (0.0006)
Town of Plains 0.0028 $ 14.02 $ 172 $ 345 0.0036
Town of Sheridan 0.0059 $ 29.66 $ 14 $ 27 0.0003
Town of Superior 0.0032 $ 16.06 $ 128 $ 257 0.0026
City of Livingston 0.0347 $ 173.44 $ 1,980 $ 3,960 0.0409
City Of laurel 0.0436 $ 21824 $ 2288 $ 4,577 0.0472
1.0000 $ 5,000.00 $ 48,460 $ 96,919 1.0000
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