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File #: 24-1921A    Version: 1
Type: Contract/Agreement Status: Passed
File created: 9/6/2024 Department: Solid Waste
On agenda: 11/19/2024 Final action: 11/19/2024
Title: Agreement with Rainbow Energy Marketing Corporation for power purchase, sale, and marketing for the Department of Solid Waste
Attachments: 1. FE_24-1083-PB_Agreement signed by Vendor and Guarantor, 2. 24-1083-PB_Agreement signed by Vendor and Guarantor

Subject:

Title

Agreement with Rainbow Energy Marketing Corporation for power purchase, sale, and marketing for the Department of Solid Waste

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Recommended Action:

Recommended Action

Approval of the agreement with Rainbow Energy Marketing Corporation for power purchase, sale, and marketing for the Solid Waste Department.

 

                     This is a revenue generating contract for the marketing and transmission scheduling of the energy generated from the Pinellas County Waste to Energy Facility.

                     The estimated revenue generation is $6,750,000.00 for the initial term until June 25, 2026.

                     This contract provides opportunities for potentially higher revenues through managed marketing services versus selling this energy at the default as-available prices to Duke Energy. This service is critical in maximizing energy sales revenues for the Solid Waste Enterprise Fund.

                     Solid Waste has elected to cooperatively utilize the scope and pricing from Lee County Contract No. 061521R-C-24, with a County legal agreement, through the original term of June 25, 2026, with an option for three additional one-year term extensions.

                     Revenue generated by the sale of electricity produced by the Waste-to-Energy Facility is budgeted to the Solid Waste Revenue and Operating Fund in the amount of $33,245,170.00.

 

Contract No. 24-1083-PB for an initial contract term until June 25, 2026, with an estimated annual revenue generation of $4,500,000.00 or $6,750,000.00 through the remaining contract term.

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Strategic Plan:

Practice Superior Environmental Stewardship
3.4 Reduce/reuse/recycle resources, including energy, water, and solid waste

Deliver First-Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public resources

 

Summary:

Summary

This agreement will allow the Solid Waste Department to generate revenue from the marketing and transmission scheduling of the energy generated from the Pinellas County Waste to Energy Facility. This contract provides opportunities for potentially higher revenues through managed marketing services versus selling this energy at the default as-available prices to Duke Energy.

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Background Information:

The County’s Waste to Energy Facility produces electricity as a by-product of its daily operations to incinerate municipal solid waste. The existing power purchase agreement with Duke Energy expires on December 31, 2024. In order to obtain the best pricing for the sale of this power on an on-going basis, the Solid Waste Department desires to contract with a qualified firm to oversee this process. A competitive Invitation to Negotiate was processed to obtain such a firm by Lee County and Pinellas County will be piggybacking the negotiated rates and scope, with County legal terms and conditions.

 

Fiscal Impact:

Revenue generated by the sale of electricity produced by the Waste-to-Energy Facility is budgeted to the Solid Waste Revenue and Operating Fund in the amount of $33,245,170.00.

 

Estimated annual revenue                                                                                    $  4,500,000.00

Estimated total revenue for initial term                     

until June 25, 2026                                                                                                         $  6,750,000.00

 

The marketing fee for Rainbow Energy Marketing Corporation will be the greater of $10,000 per month or either 3% of net revenues from the sale of as-available energy or 10% of the net incremental value from the sale of as-available energy.  The variable marketing service fee will be deducted from the amount due and owing to Pinellas County on a monthly basis.

 

Staff Member Responsible:

Paul Sacco, Director, Solid Waste
Merry Celeste, Purchasing Director, Administrative Services
Joe Lauro, Director, Administrative Services

 

Partners:

N/A

 

Attachments:

Agreement