2002-41RESOLUTION NO. 2002- 41
A RESOLUTION APPROVING AN AMENDMENT
TO AN ELECTRICAL SERVICE AGREEMENT
WHEREAS, an alternate electric service agreement was approved by Resolution
No. 2002 -5 on 2/4/02; and,
WHEREAS, the electrical service supplier has offered a modification to the
agreement which provides a beneficial cost reduction to the Village;
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE PRESIDENT
AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK
AND LAKE COUNTIES, ILLINOIS, as follows:
Section 1. The attached agreement entitled "Contract Amendment" related to
Account Numbers 0111585007,1948149005 and 011152307 is hereby approved.
Section 2. The Village Manager is authorized and directed to execute the
agreement. A copy of said agreement is attached hereto and made a part hereof.
AYES: 6 - Braiman, Glover, Berman, Johnsen,,-Kahn--, :;Trilling
NAYES: 0 - None
ABSENT; 0 - None
PASSED: October 21 '2002
APPROVED: October 21 , 2002
APPROVED:
Village President
ATTEST:
Village Clerk
0:\PWDIRGRP\LHCICOMEDkes2002.doc
AES NewEnergy, Inc. ( "NewEnergy ")
CONTRACT AMENDMENT
Amendment Date: September 4, 2002
Customer: Village of Buffalo Grove
VILLAGE OF BUFFALO GROVE
;1b0V -4 2002
PW ADMIN
Whereas AES NewEnergy, Inc. ( "NewEnergy ") and Village of Buffalo Grove
( "Customer"), (the Parties), desire to amend certain terms of the AES NewEnergy Fixed
Price Electricity Service Agreement (including the AES NewEnergy, Inc. Illinois Fixed Price
Schedule A and the Definitions and General Terms and Conditions), effective as of
215/2002, and executed by Customer on 2/4/2002, a copy of which documents are
attached, incorporated herein by reference, and referred to as the "Original Agreement ";
and;
Whereas the consideration exchanged in return for the terms contained in this Contract
Amendment is recognized by the Parties as valid and sufficient to create a contract;
Therefore, the Parties agree as follows:
1. Paragraph 3 Term of the Original Agreement shall have the following sentence added to
the existing language:
Following receipt of NewEnergy's pricing proposal prior to the end of the Term, Customer
shall provide NewEnergy with an opportunity to match any bona fide competitive proposals
for electricity supply offered by any other Retail Electric Supplier, and shall accept
NewEnergy's proposal if it provides substantially similar economic benefits as determined
by the Village in its sole discretion.
2. The Fixed Prices) shown on Illinois Fixed Price Schedule A shall be amended to
include a credit of $.005 per kilowatt hour of electricity actually consumed by Customer for
the period beginning with each Account's June, 2002 billing cycle and ending with the May,
2003 billing cycle ( "Restructuring Credit "). The Restructuring Credit will be provided during
this time only, and the Fixed Price(s) shall remain unchanged and in effect throughout the
Term of the Original Agreement. An amount reflecting the Restructuring Credit for each
month shall be included on a subsequent invoice for each Account, as follows:
BILLING CYCLE
APPEARING ON
INVOICE MONTH
June 2002
Au oust 2002
July 2002
September 2002
Au ust 2002
October 2002
September 2002
November 2002
October 2002
December 2002
November 2002
January 2003
December 2002
February 2003
January 2003
March 2003
February 2003
Aril 2003
March 2003
May 2003
April 2003
June 2003
May 2003
July 2003
Provided, however, the Restructuring Credit is provided pursuant to and is contingent
upon a confidential Market Development Agreement dated May 15, 2002 that
NewEnergy has with Exelon Generation Company, L.L.C. ( "Confidential Agreement").
Pass - through of the Restructuring Credit to Cutomer is contingent upon NewEnergy's
actual receipt of such Restructuring Credit pursuant to the Confidential Agreement. If
NewEnergy does not receive the benefit of the Confidential Agreement and equal to
the amount of kilowatt hours consumed by Customer during the relevant period
multiplied by $.005, whether due to a termination or breach of the Confidential
Agreement or otherwise, NewEnergy shall not be obliged to provide any Restructuring
Credit to Customer. In the event that the service to any or all of the Account(s) is
terminated for any reason during the Term, Customer agrees to repay to NewEnergy
the entire amount of the Restructuring Credit received by Customer for the terminated
Account(s). Repayment shall be remitted not more than fourteen (14) days after
termination of service occurs, and shall not be reduced or offset for any reason.
3. All other terms and conditions contained in the Original Agreement which are not
specifically modified in this Amendment are incorporated herein by reference, and remain
in full force, effective, and enforceable by either Party. Neither Party may modify their
obligations, except as provided in the Original Agreement, Fixed Price Electricity Service
Agreement.
4. Customer affirms that it has read this Contract Amendment in its entirety and it agrees
to purchase services from NewEnergy subject to the Original Agreement as amended
herein.
I agree with the provisions to the Contract Amendment set forth abo%e and request
NewEnergy to provide service for the Account(s) under the terms and conditions specified
herein and in the Original Agreement in exchange for valid and sufficient consideration.
By. Village of Buffalo Grove
By:
(Authorized Signatute and Title)
NewEnergy Reference Numkr: IL- FP12045488
NewEnergy Contract Number: 3923
By: ACS, e y Inc.
By:
Charles C. Sutton, Vice President
Date: (�)7 Z� }? oo
Date: 06T__ 3), *?_ 00 7_
CONTRACT AMENDMENT PAGE 2 OF 2