Chicago MWRD extends energy auction services while reviewing natural gas options

Chicago MWRD extends energy auction services while reviewing natural gas optionsThe district has retained EnerConnex for advisory services, though commissioners queried the cost-effectiveness of recent natural gas procurement strategies regarding upcoming contract renewals.

Board authorizes extension of agreement with EnerConnex for real-time energy reverse auctions.

Commissioner Sharon Waller questions benefits of reverse market regarding recent natural gas costs.

Staff confirms natural gas contract expires in August; procurement method currently under review.

Board awards $3.13 million contract to IHC Construction Companies for HVAC improvements at O’Brien WRP.

The Metropolitan Water Reclamation District of Greater Chicago (MWRD) Board of Commissioners has authorized the extension of an agreement with EnerConnex, LLC to provide management services for real-time energy reverse auctions. By exercising the option to extend Contract 20-RFP-18, the district continues its relationship with the firm, which utilizes its proprietary ECX Marketplace to facilitate competitive bidding. However, the decision prompted a discussion regarding the district’s strategy for natural gas procurement as current arrangements near their expiration. During the January 8 meeting, Commissioner Sharon Waller questioned the efficacy of the reverse auction model for natural gas. While the firm touts a hyper-competitive bid process that has yielded favorable electricity rates, Waller noted that the district "did not seem to benefit from the reverse market rate" for natural gas between 2024 and 2025. She asked staff for recommendations on continuing the reverse market approach for gas. District staff explained that the current natural gas contract runs through August. A staff member identified as Mr. Desai noted that the district is currently reviewing its options, which include extending the existing contract, conducting a new auction, or reverting to market rates. "The staff is continuously reviewing the market... and then kind of determine which path is the best going forward," Desai stated. In addition to the operational expenditure discussions, the Board approved a significant capital project. IHC Construction Companies, LLC was awarded a contract not to exceed $3.13 million for HVAC improvements at the O'Brien Water Reclamation Plant. The project includes a base bid of $2.98 million plus a five percent allowance for change orders.