The Overton Power District No. 5 Board of Trustees awarded the power scheduling coordinator contract to Morgan Stanley Commodities at their regular Board meeting on April 20, 2016.
The District currently has a power supply contract with Arizona Public Service (APS ) that terminates on December 31, 2017. Last year, the District hired Energy Source as a consultant to help procure a new power contract that would begin on January 1, 2018. Requests for proposals (RFPs) were released in June 2015. Energy Source and the District reviewed twelve proposals and scheduled telephone interviews with the top five candidates in September 2015.
An evaluation was performed following the telephone interviews and face to face meetings were scheduled in Overton in October 2015 where each entity introduced their key team members and presented their proposals. Following the face to face interviews each power scheduling coordinator was given the opportunity to review the District’s transmission contracts and load data including hydro power purchases.
A final selection was made based on the final updated proposals presented. Morgan Stanley Commodities Group presented pricing options for a 3-year, 5-year and 7-year term with an additional option that included the assumption of the existing APS power contract on June 1.
After evaluating the final proposals Energy Source and the District determined that Morgan Stanley Commodities Group presented the offer that best fits the District’s needs.
The Board of Trustees approved unanimously the 7-year pricing option including the assumption of the existing APS power contract. Mendis Cooper, Overton Power District No. 5 General Manager stated that “Favorable market conditions will allow the District to save on average five million dollars a year for the length of the 8.5-year contract, savings that will allow the District to pay down debt, invest in our own power generation without acquiring new debt and lower large commercial rates that will help the economic development of the region.”