HomeMy WebLinkAboutResolutions - 2022.09.01 - 37581
AGENDA ITEM: Resolution - Alternative Energy Supplier-Renewable Electric Supply Agreement
22-297
COMMITTEE MEETING: Board of Commissioners
DATE: Thursday, September 1, 2022 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
DEPARTMENT SPONSORED BY
Facilities Management William Miller III
INTRODUCTION AND BACKGROUND
Oakland County now has the opportunity to contract with a third-party for the purchase of 75% of
the total County energy via locally sourced solar power. The Facilities team has worked with a
consultant to estimate the County’s potential cost savings and will be soliciting pricing and
contracts from several potential providers.No contract will be formally negotiated and executed
without Administration’s approval. The deadline to formalize this agreement is September 2, 2022,
so there is a timing concern with solidifying this agreement.
POLICY ANALYSIS
The resolution is requesting approval to enter a contract for the expansion of renewable solar electrical energy and to be
authorized to execute the proposed 10-year AES Renewable Electric Supply Agreement contract. Oakland County (OC)
has an opportunity to secure 75% renewable electrical energy supply at a fixed rate through a negotiated 10-year AES
Renewable Electric Supply Agreement contract, for years 2026 through 2036. There is a timing concern with solidifying
this contract and the deadline to formalize it is September 2, 2022. The final vendor selection and terms of the contract
will be communicated to the Board of Commissioners within 30 days of authorization of the 10-year AES Renewable
Energy Supply Agreement contract. This is due to any delays in executing the proposed contract will result in limited
solar electrical energy availability and increased electrical energy costs. FM&O and Purchasing will request that each of
the pre-qualified third-party providers formally submit pricing in order to make a selection based on Purchasing Division’s
policies and procedures.
With the expansion of 75% utilization of renewable solar electrical energy, OC would significantly reduce the County’s
greenhouse gas emission reduction, support the State-wide climate goals, and would directly impact the County’s
sustainability plan target to achieve net zero emissions for County government operations by 2050, with an interim target
of 50% emission reduction by 2035. All non-contracted electrical energy rates will continue to rise, with premium
increases on renewable electrical energy rates. Local renewable solar energy availability is limited, and the proposed 10-
year AES contract will secure a fixed quantity of renewable electrical energy, per County’s usage requirements, from a
Michigan based solar electrical energy supplier.
FM&O and Purchasing participated in the review of four (4) third-party providers, and three (3) have been prequalified
based on longevity in the Michigan market, market share of Michigan electric choice load, financial strength, as well as
a demonstration of ability to acquire in-state capacity. Contracts have been received from each of the third-party providers
and Corporation Counsel has reviewed. If terminated outside of the parameters of the contract, a cash out option would
be assessed to OC based on current renewable electrical energy rates on the remaining annual usage (KWH). Current
annual usage (KWH) is 54,581,535. No budget amendment is required.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.858.5115 (office) or andrewsmb@oakgov.com, or the department contact persons listed for
additional information.
CONTACT
Erin Quetell, Environmental Sustainability
Officer
Edward Joss, Director Facilities
Management-APP
quetelle@oakgov.com, josse@oakgov.com
ITEM REVIEW TRACKING
William Miller III, Created/Initiated - 9/1/2022
David Woodward, Board of Commissioners Approved - 9/1/2022
Hilarie Chambers, Executive's Office Approved - 9/8/2022
Lisa Brown, Clerk/Register of Deeds Final Approval - 9/14/2022
AGENDA DEADLINE: 09/01/2022 6:00 PM
COMMITTEE TRACKING
2022-08-24 Economic Development & Infrastructure - Recommend and Forward to Finance, as
amended
2022-08-24 Finance - Recommend to Board
2022-09-01 Full Board
ATTACHMENTS
1. Oakland County - Solar Energy Supply Proposal 08.12.2022
2. OaklandCountyFMO82322
3. CountyofOaklandPR82322
4. OaklandCountyWR82322
September 1, 2022
MISCELLANEOUS RESOLUTION #22-297
Sponsored By: William Miller III
Facilities Management - Resolution - Alternative Energy Supplier-Renewable Electric Supply Agreement
Chairperson and Members of the Board:
WHEREAS Facilities Management is responsible for the ongoing operation of all County buildings and to
provide cost-effective electrical energy supply in support of a healthy working environment for employees and
visitors; and
WHEREAS On April 21, 2022, Governor Gretchen Whitmer passed the first comprehensive climate action
plan, MI Healthy Climate Plan, which sets forth aggressive carbon reduction targets; and
WHEREAS the County’s current electrical energy supply is contracted to an Alternative Energy Supplier
(AES), through 2026, and includes 15% renewable electrical energy as required per state law; and
WHEREAS the County has an opportunity to secure 75% renewable electrical energy supply at a fixed rate
through a negotiated 10-year AES Renewable Electric Supply Agreement, for years 2026 through 2036; and
WHEREAS with the expansion of renewable solar electrical energy, the County would significantly reduce the
County’s greenhouse gas emissions and support the State-wide climate goals; and
WHEREAS a 75% utilization of renewable electrical energy would directly impact the County’s sustainability
target to achieve net zero emissions for County government operations by 2050, with an interim target of 50%
emission reduction by 2035, a critical component of the sustainability plan and greenhouse gas reduction
recommendations; and
WHEREAS all non-contracted electrical energy rates will continue to rise, with premium increases on
renewable electrical energy rates; and
WHEREAS local renewable solar energy availability is limited, the proposed 10-year AES Renewable Electric
Supply Agreement will secure a fixed quantity of renewable electrical energy, per the County’s usage
requirements, from a Michigan based solar electrical energy supplier; and
WHEREAS Facilities Maintenance and Operations (FM&O) and Purchasing participated in the review of four
(4) third-party providers, and three (3) have been prequalified based on longevity in the Michigan market,
market share of Michigan electric choice load, financial strength, as well as a demonstration of ability to acquire
in-state capacity; and
WHEREAS FM&O and Purchasing requested and received agreements from each of the third-party providers
and sent the agreements to Corporation Counsel for review; and
WHEREAS subsequent to the Board of Commissioners approval to enter into a 10-year AES Renewable
Electric Supply Agreement, FM&O and Purchasing will request that each of the pre-qualified third-party
providers formally submit pricing which will be evaluated, and a supplier chosen as outlined in the Purchasing
Policy and Procedure 2300.16; and
WHEREAS per Purchasing Policy and Procedure 2400.6 the Board of Commissioners shall approve contracts
in duration over five years; and
WHEREAS any delays in executing the proposed 10-year AES Renewable Electric Supply Agreement will
result in limited solar electrical energy availability and increased electrical energy costs; and
WHEREAS the Director of Management and Budget and the Director of Facilities Management requests the
approval and authorization of the proposed 10-year AES Renewable Electric Supply Agreement.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners approves and authorizes the
County to enter into and execute a 10-year AES Renewable Electric Supply Agreement, pursuant to the
Purchasing Policies and Procedures, for the expansion of renewable solar electrical energy, as long as the
pricing does not exceed the current rates set by the Michigan Public Service Commission in Rider 17 of the
DTE Electric Company Rate Book for Electric Service and contingent upon review by Corporation Counsel.
BE IT FURTHER RESOLVED the final vendor selection and terms of the contract will be communicated to
the Board of Commissioners within 30 days of authorization of the 10-year AES Renewable Energy Supply
Agreement.
BE IT FURTHER RESOLVED that the Environmental Sustainability Officer and the Director of Facilities
Management shall provide an annual report to the Economic Development and Infrastructure Committee detailing
the performance metrics of the AES Renewable Energy Supply Agreement.
BE IT FURTHER RESOLVED a budget amendment is not required at this time.
Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William Miller III.
Date: September 01, 2022
David Woodward, Commissioner
Date: September 08, 2022
Hilarie Chambers, Deputy County Executive II
Date: September 14, 2022
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2022-08-24 Economic Development & Infrastructure - Recommend and Forward to Finance, as amended
2022-08-24 Finance - Recommend to Board
2022-09-01 Full Board
VOTE TRACKING
Motioned by Commissioner William Miller III seconded by Commissioner Angela Powell to adopt the attached
Resolution: - Alternative Energy Supplier-Renewable Electric Supply Agreement.
Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip
Weipert, Angela Powell, Thomas Kuhn, Chuck Moss, Marcia Gershenson, William Miller III, Yolanda
Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Gary McGillivray, Adam Kochenderfer (18)
No: None (0)
Abstain: None (0)
Absent: (0)
Passed
ATTACHMENTS
1. Oakland County - Solar Energy Supply Proposal 08.12.2022
2. OaklandCountyFMO82322
3. CountyofOaklandPR82322
4. OaklandCountyWR82322
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on September 1, 2022,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac,
Michigan on Thursday, September 1, 2022.
Lisa Brown, Oakland County Clerk / Register of Deeds
To Kyle Jen, Finance Director
Cc April Lynch, Deputy Executive
From Erin Quetell, Chief Environmental Sustainability Officer
Ed Joss, Director of Facilities Management
Joseph Murphy, Manager Facilities Maintenance and Operations
Subject Solar Energy Supply Proposal
Date August 12, 2022
Introduction
Facilities Management has proactively taken numerous steps over the years to reduce
Oakland County’s utility costs. Facilities Management has participated in the deregulated
natural gas market for two decades, realizing an average annual cost savings of
approximately $100,000. Additionally, when the electric energy supply industry in
Michigan was deregulated, Facilities Management, with the assistance of Purchasing and
Corporation Counsel, was the first governmental agency to sign an Alternative Energy
Supplier (AES) contract in July of 2001. Over the years a 20% rate reduction was
achieved, for a total cost avoidance of over $7,000,000.
Facilities has been taking steps to once again be a leader and steward to the environment
by pursuing ways to reduce our carbon footprint and cut energy usage and cost. Oakland
County now has the opportunity to contract with a third-party for the purchase of 75% of
the total County energy via locally sourced solar power. The Facilities team has worked
with a consultant to estimate the County’s potential cost savings and will be soliciting
pricing and contracts from several potential providers.1 No contract will be formally
negotiated and executed without Administration’s approval. The deadline to formalize this
agreement is September 2, 2022, so there is a timing concern with solidifying this
agreement.
1 - There are several third-party providers. We solicited four and pre-qualified three, with the assistance of
Purchasing. We then requested and received contracts from the three and asked Corp Counsel to review them.
Once we receive the go ahead from Administration, we will have the three pre-qualified providers formally
submit proposals.
Background
Below is the background history of Retail Open Access, as well as some benefits and challenges
to this proposed agreement. The Facilities team and Sustainability Officer believe the benefits
outweigh the challenges.
Public Acts 141 and 142 of 2000 were signed into law requiring that Michigan consumers have retail
choice by January 2002. Retail Open Access (referred to throughout as “ROA”, “electric customer
choice” or “electric choice”) for all customers of Michigan investor-owned electric utilities took effect on
January 1, 2002. AES’s currently serve electric choice customers in the Consumers Energy Company
(Consumers Energy), DTE Electric Company (DTE Electric), Upper Peninsula Power Company
(UPPCo), Upper Michigan Energy Resources Corporation (UMERC), Cloverland Electric Cooperative
(Cloverland), and Indiana Michigan Power Company (I&M) territories. Michigan is one of 20
jurisdictions that had full or limited restructuring of retail electric markets in 2019. In Michigan, Act 286
caps electric choice participation at 10 percent of an electric utility’s average weather-adjusted retail
sales for the preceding year. Michigan’s Electric Customer Choice Program is available to all
customers of regulated electric utilities, excluding members of electric cooperatives with loads of less
than one megawatt (MW). As of December 2019, there were approximately 5,817 customers
participating in the electric choice programs (compared to 5,819 in 2018). This represents
approximately 2,016 MW of electric demand. As of December 2019, approximately 6,447 customers
remain in the queue.
Sustainability
By dedicating 75% of the total electrical demand of Oakland County campus to renewable solar
energy, we have the potential to lead in our greenhouse gas reduction goals set forth by the County
Executive. As a reminder, those goals are to reduce County emissions by 50% by 2030 and become
carbon neutral by 2050. Based on the recent greenhouse gas inventory, our built environment,
meaning our buildings and facilities, are the greatest emitters comprising just over 75% of the total
emissions of the county-owned and operated buildings and facilities. The County can lead by
example by continuing to stay up to date on current energy policy and technology trends and show
the dedication to investing in renewable energy programs. This investment would also compliment
the great work that the facilities and maintenance teams already do around energy efficiency
upgrades and new technology considerations to optimize the County’s built environment. Finally, this
investment would set a path for continual advancement in other opportunities on campus such as the
potential for additional renewable siting locations, energy storage capabilities, and building
electrification.
Benefits
o All alternative electric suppliers are State certified.
o The County’s contracts with alternative electric suppliers would be for electricity usage only.
Thus, it’s straight forward and any other services we might need (e.g., an energy audit,
distribution grid expansion) would be contracted for through DTE regardless.
o Oakland County has successfully contracted with alternative electric suppliers for over 20
years (CMS Energy, First Energy, and Direct Energy).
o Proposed total energy supplied by solar 75%, meaning 75% of the energy used in Oakland
County facilities would be offset via renewable energy, which directly supports the County’s
goal of net zero.
o Reduce carbon footprint will be tracked during term of the contract.
o Fixed price of electricity for 10 years, resulting in stable budgeting.
o 2026 term price lower than the standard utility rate.
o 2026 term price lower than standard ROA rate, based on current market.
Challenges
o DTE controls the distribution grid (electrical infrastructure), so there is a concern that when
situations like a power outage arise, there may be challenges with energy supply even
with renewable energy procurement. Note, however, that we will continue paying (remain a
customer of) DTE for delivery (i.e., their maintaining the distribution grid to us). Further, note
that if it could be proven that DTE discriminated against entities using alternative electric
suppliers, they could be fined by the MPSC. This has not been an issue over the 20 years.
o The deadline to execute this new 75% solar deal to start May 2026 is September 1, 2022. This
timing is a factor because of upward pressure on energy prices.
o Pricing is typically only good for the day of the bid. Therefore, final prices will be updated the
day the County agrees to sign. Though the team doesn’t believe this will vary too much from
the current proposal.
o The current energy usage of existing County buildings would be used to determine the total
amount of energy needed from the solar system. Though there is some flexibility should
facilities close, the agreement would still consider the initial energy loads based on current
energy usage. A cash out option would be assessed to Oakland County, if terminated outside
of the parameters of the contract.
Potential Savings
2022 through 2026 Contract AES VS Utility (DTE) - Proposed Annual Savings
*DTE KWH RATE historical l y i ncre ases by OVER 2% PER YEAR (2% used i n DTE RATE cal cul ations below)
YEAR AES SUPPLY RATE *DTE RATE RATE SAVINGS Potential Savings
2% ESCALATION RATE 2022 0.0590$ 0.0747$ 0.0157$ 858,376.51$
1.02 2023 0.0590$ 0.0762$ 0.0172$ 939,950.25$
ANNUAL USAG E (KWH)2024 0.0590$ 0.0777$ 0.0187$ 1,023,155.47$
54,581,535 2025 0.0590$ 0.0793$ 0.0203$ 1,108,024.79$
2026 0.0590$ 0.0809$ 0.0219$ 1,194,591.50$
2027 through 2036 Contract AES SOLAR VS Uti l ity (DTE) - Proposed Annual Savi ngs
*DTE KWH RATE historical l y i ncre ases by OVER 2% PER YEAR (2% used i n DTE RATE cal cul ations below)
YEAR AES SUPPLY RATE *DTE RATE RATE SAVINGS Potential Savings
2% ESCALATION RATE 2027 0.0780$ 0.0832$ 0.0052$ 283,835.72$
1.02 2028 0.0780$ 0.0849$ 0.0069$ 374,659.63$
ANNUAL USAG E (KWH)2029 0.0780$ 0.0866$ 0.0086$ 467,300.01$
54,581,535 2030 0.0780$ 0.0883$ 0.0103$ 561,793.21$
2031 0.0780$ 0.0901$ 0.0121$ 658,176.27$
2032 0.0780$ 0.0919$ 0.0139$ 756,486.99$
2033 0.0780$ 0.0937$ 0.0157$ 856,763.92$
2034 0.0780$ 0.0956$ 0.0176$ 959,046.39$
2035 0.0780$ 0.0975$ 0.0195$ 1,063,374.52$
2036 0.0780$ 0.0994$ 0.0214$ 1,169,789.20$
Conclusion
It is recommended that the County leadership team support this agreement to procure 75%
of the total energy needs via renewable solar energy starting in 2026 and recommended for
full board approval.
RETAIL ELECTRIC
SALES AGREEMENT
This RETAIL SALES AGREEMENT (together with Exhibit A and Exhibit B, the “Agreement”), dated
as of August 1, 2022 (the “Effective Date”), is by and between Seller and the party set forth on the Exhibit A
attached hereto (“Customer”). Seller and Customer can be individually referred to as a “Party” or collectively as
“Parties.”
WHEREAS, the Parties wish to sell and purchase certain Energy (as hereinafter defined) through
transactions that they will enter into with each other as Customer and Seller;
WHEREAS, the Parties acknowledge that this Agreement is subject to the terms and conditions of The DTE
Electric Choice Program (“Program”) and its Retail Access Service Rider (“RASR”) as approved by the
Michigan Public Service Commission (“MPSC”) and the applicable rules and regulations of the MPSC.2
NOW, THEREFORE, in consideration of the mutual covenant contained herein, the Parties agree as follows:
ARTICLE 1: DEFINITIONS
In addition to the other terms defined herein, the following terms shall have the meanings set forth below:
“Bankruptcy Proceeding” means with respect to a Party or entity, such Party or entity (i) makes an assignment or any
general arrangement for the benefit of creditors, (ii) files a petition or otherwise commences, authorizes or acquiesces
in the commencement of a proceeding or cause under any bankruptcy or similar law for the protection of creditors,
(iii) has such petition filed against it and such proceeding remains un-dismissed for 30 days, (iv) otherwise becomes
bankrupt or insolvent (however evidenced), or (v) is unable to pay its debts as they fall due.
“Business Day” means a day on which Federal Reserve member banks in New York City are open for business. A
Business Day shall open at 8:00 a.m. and close at 5:00 p.m. local time for each Party’s principal place of business.
“Contract Quantity” means the projected amount of Energy that Customer will utilize based on available information
at the time this Agreement is executed. Seller agrees to sell to Customer, and Customer agrees to purchase from Seller,
100% of its energy needs, pursuant to the Agreement.
“Capacity” means the generation resources utilized by Seller to comply with the Resource Adequacy Requirement,
the Customer’s Capacity PLC, and the SRM. All Capacity shall be sourced from a capacity resource located within
MISO Local Resource Zone 7.
“Customer Capacity PLC” means the Customer peak load contribution as assigned by MISO and calculated by the
Electric Utility.
“Delivery Point” means the point(s) of interconnection (DTE Load Zone) between the Electric Utility and Customer’s
end use meter where Seller will arrange for delivery of supply to the Customer at or near the Premises.
“Electric Utility” means DTE Electric Company, a Michigan corporation regulated by the MPSC.
“Energy” means electricity or other product described in the Agreement.
2 Customer can learn more about the Program, RASR and the MPSC at the following web address:
https://www.michigan.gov/mpsc/0,9535,7-395-93308_93325_93423_93501_93509---,00.html.
“Energy Charge” means the price in $U.S. to be paid by Customer to Seller for the purchase of Energy or any other
payment to be made by Customer to Seller in connection with the Agreement as set forth on Exhibit A attached hereto.
“Interest Rate” means, for any date, two percent over the per annum rate of interest equal to the prime lending rate
as may from time to time be published in the Wall Street Journal under “Money Rates” provided, however, that the
Interest Rate shall never exceed the maximum lawful rate.
“Law” means any applicable law, rule, regulation, order, writ, judgment, decree or other legal or regulatory
determination.
“Legal Proceedings” means any suits, arbitrations, proceedings, judgments, rulings or orders by or before any
tribunal, court or any governmental authority.
“Michigan Renewable Energy Laws” means the Michigan Compiled Laws § 460.1011 et seq., and any regulations
promulgated with respect thereto.
“MISO” means the Midcontinent Independent System Operator, Inc.
“MISO Tariff” means MISO’s Open Access Transmission, Energy and Operating Reserve Markets Tariff on file with
the FERC, as may be amended from time to time.
“MISO Transmission Settlement” means MISO’s Transmission Settlements Business Practice Manual BPM-012.
“Premises” means the facilities owned or operated by Customer that consumes the delivered Energy, generally located
at or near the Delivery Point(s).
“Program” means The DTE Electric Choice Program as approved by the MPSC.
“RAST” means the Electric Utility’s Retail Access Service Rider as approved by the MPSC.
“SRM” means the Electric Utility’s state reliability mechanism as approved by the MPSC.
ARTICLE 2: REPRESENTATIONS AND WARRANTIES
2.1 Representations And Warranties. Each Party represents and warrants to the other Party that (i) it is duly
organized, validly existing, in good standing and qualified to conduct and carry out its business; (ii) all regulatory
authorizations necessary to legally perform obligations under this Agreement are met; (iii) it has the power and
authority to enter into, perform its obligations under this Agreement; (iv) the execution, delivery and performance of
this Agreement have been duly authorized and does not violate any law or regulation, (v) this Agreement is a legally
valid and binding obligation enforceable against it in accordance with its terms, (vi) there are no Bankruptcy
Proceedings pending or being contemplated by it or to its knowledge, threatened against it; (vii) there are no Legal
Proceedings that materially adversely affect its ability to perform this Agreement.
ARTICLE 3: OBLIGATIONS AND DELIVERIES
3.1 Seller’s and Customer’s Obligations. Seller shall sell and Customer shall purchase the Contract Quantity
of Energy as described in this Agreement. Customer shall pay Seller the Energy & Capacity Price (as described in
the Additional Exhibit A) as well as any other charges specified in the Energy Charge set forth on Exhibit A.
Notwithstanding, the Parties acknowledge and agree that ERM is not a "utility" within the meaning of Section 366 of
the Bankruptcy Code (11 U.S.C. 366) and that upon filing of a bankruptcy petition by or against Customer, Seller
shall only have an obligation to continue selling to Customer if required by other provisions of this Agreement, and
only if Seller receives satisfactory assurance of Customer's creditworthiness and ability to perform as otherwise
provided in this Agreement.
3.2 Warranty. Seller warrants that (i) it has title to all Energy sold and delivered by it to Customer, free and
clear of all taxes, liens, claims, security interests, encumbrances and other defects of title and (ii) it has the right to sell
such Energy. SELLER EXPRESSLY DISCLAIMS AND NEGATES ANY OTHER REPRESENTATION OR
WARRANTY, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY
REPRESENTATION OR WARRANTY WITH RESPECT TO CONFORMITY TO MODELS OR SAMPLES,
MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE. This Section 3.2 shall survive
expiration or termination of this Agreement.
3.3 Contract Quantity. Unless otherwise stated in Exhibit A, Seller shall supply all of Customer’s Energy
requirements or usage at the Premises.
3.4 Deliveries. Seller shall deliver the Energy to Customer at the Delivery Point. Title to all supply delivered
by Seller hereunder shall pass from Seller to the Customer at the Delivery Point (or as referred to in Exhibit A).
3.5 Term.
(i)Following acceptance and successful enrollment, Customer agrees to purchase its full electricity
requirements from Seller for the period (a) beginning on the Customer’s last scheduled meter read
date during the planning year immediately preceding the Commencement Date on or around June
1, 2026 (the “Commencement Date”) in the Program through (b) the Customer’s next scheduled
meter read date immediately following the [ Ten (10) ] year anniversary3 of the Commencement
Date (such period from clause (a) to clause (b) is the “Purchase Period”). The RAST defines the
terms and conditions that constitute acceptance and successful enrollment into the Program.
Customer acknowledges that for any service location (identified in Exhibit A or on Exhibit B) not
accepted and/or successfully enrolled within forty-five (45) days of the date of this Agreement,
Seller reserves the right to revise or rescind this offer. If, as a result of ERM’s sole negligence, the
enrollment with the Electric Utility is not successful, ERM will reimburse the Customer for any
positive difference between the Electric Charge in this Agreement and the actual cost incurred by
the Customer for the replacement electric supply for the time between the planned Commencement
Date and the actual Commencement Date.
(ii)At the expiration of the Purchase Period, this Agreement shall automatically terminate, and if no
other alternative energy supplier has been selected, then the Customer shall be returned to tariff
service provided by the Electric Utility in accordance with the RASR. Customer agrees to provide
Seller with at least 180 days prior written notice of its intent to be returned to tariff service provided
by the Electric Utility or to select an alternative energy supplier, as the case may be.
3.6 Metering. Metering or any other measurement equipment shall be as described in Exhibit A, and if not fully
described in Exhibit A, metering or measurement equipment shall be installed, maintained, serviced, tested and
measured by the applicable local distribution or Electric Utility, or its successor, in accordance with its tariff. Unless
otherwise stated in Exhibit A, Seller is not responsible for any costs of metering or measurement equipment, or the
installation, maintenance, service, testing or measurement thereof. Seller is not responsible or liable to Customer for
failure to delivery Energy if any required metering or measurement equipment is not in place.
3.7 Changed Energy Needs.
(i) If during the term of this Agreement, Customer’s monthly electricity usage increases or
decreases over 25% for six consecutive months due to expansion or contraction of the Premises,
Customer and Seller shall negotiate in good faith to determine the pricing for such added or reduced
quantities of Energy requirements.
(ii)If the Customer closes, abandons or demolishes the Premises and the Premises’ meter is taken
out of service, the Customer shall have no further obligation under this Agreement for the Premises
as identified in Exhibit B; provided, however, the Customer has provided Seller with at least 60
days prior written notice.
3 Term to be a minimum of ten years.
In the event Customer’s sells the Premises, the Customer will negotiate in good faith to have the Premises as identified
in Exhibit B transferred to such buyer as further described in Section 11.2.
ARTICLE 4: BILLING AND PAYMENT
4.1 Invoices. Customer will receive one bill from the Electric Utility, which will include all associated charges
identified in the Price section set forth on Exhibit A. If Energy Charge on the bill received from the Electric Utility
does not match the Energy Charge in this Agreement, Customer shall have the right to dispute such charge and request
a reasonably detailed explanation of the difference between Energy Charge on Electric Utility bill and the Energy
Charge in the Agreement. Seller will provide a response to the Customer within a commercially reasonable amount
of time with an explanation of the difference between Energy Charge on Electric Utility bill and the Energy Charge
in the Agreement. Customer agrees to pay all non-disputed amounts owed to Seller when due by remitting payment
to the Electric Utility, which in turn will remit associated payment to Seller. If the Electric Utility fails to perform its
billing responsibilities, Seller reserves the right to bill the Customer directly its monthly Energy Charges for service
rendered. Upon 60 days following nonpayment when due of any non-disputed amounts owed, Seller shall have the
right to terminate this Agreement without fault or liability, and the Customer shall be responsible for timely notifying
the Electric Utility that is desires to be returned to Full Service in accordance with the RASR.
4.2 Failure to Pay. In the event Customer fails to pay the full amount payable by Customer when due and absent
a legitimate dispute as to whether such amount is due, interest on the unpaid portion shall be charged from the date
due until the date of payment at a rate equal to the lower of (i) the Interest Rate, or (ii) the maximum applicable lawful
interest rate.
4.3 Invoice Errors and Disputes. If an error is discovered in any invoice, the error shall be rectified within ten
(10)business days after notice of the discovery of the error. If a dispute arises as to the amount payable in any invoice,
Customer shall pay when due the amount not in dispute and the disputing Party shall provide the other Party written
notice including a detailed description of the specific basis of the dispute. The Parties shall first attempt to resolve the
dispute through the representatives of the Parties with authority to settle disputes on an informal basis. Prior to the
conclusion of such informal attempts to resolve the dispute, or ten (10) business days, whichever is shorter, neither
Party shall seek resolution through the Electric Utility, or the MPSC. During this reconciliation, no late charges will
accrue.
ARTICLE 5: FINANCIAL RESPONSIBILITY
5.1 Initial Assurance of Performance. Prior to the start of any supply of Energy by Seller, Seller has the option
to require Customer to provide assurances of performance in a form satisfactory to Customer in order to secure
Customer’s performance. Assurances may, at the option of Customer, include prepayment, letter of credit, or guaranty
from a party determined by Seller in its sole discretion to be creditworthy (“Assurances”). Customer may be required
to provide new or additional Assurances in the future. If Seller does not initially require Assurances, that shall not
prevent Seller in any way of requiring Assurances at a later date.
5.2 Other Assurances of Performance. If during the term of this Agreement, Seller (i) in its sole good faith
opinion, determines that there has been a material adverse change in Customer’s credit status or financial condition
(for example, but not limited to, a credit/bond rating lower than “BBB-”), or Customer becomes more than ten (10)
days in arrears in paying its bills hereunder, then Seller may demand in writing Assurances from Customer.
Furthermore, if during the term of this Agreement, the calculated damages payable under Section 6.4 below exceed
five percent of the total revenue Seller is to obtain under this Agreement (the “Threshold Amount”), Seller may
demand Assurances for the amount that such calculated damages exceed the Threshold Amount. Any Assurances
received by Seller shall be returned once the calculated damages in Section 6.4 is less than the Threshold Amount.
5.3 Remedy for Failure to Provide Assurances. Should Seller not receive satisfactory Assurances within ten
(10) days of a written request sent to Customer, Seller shall have the right to immediately suspend performance without
further notice.
ARTICLE 6: DEFAULTS AND REMEDIES
6.1 Damages for Failure to Deliver or Receive. Each Party shall be liable for those damages or losses directly
arising from its breach of any delivery or receipt obligation. The remedy for breach shall be Customer’s actual loss on
the commercially reasonable purchase of replacement Energy made in good faith, or Seller’s actual loss on the
commercially reasonable resale of Energy made in good faith; provided, however, if no such replacement or resale is
made, then a market price most applicable to the Energy, to be mutually determined in a commercially reasonable
manner by the Parties, which may be based on quotations from at least two (2) leading dealers, brokers or industry
participants reasonably selected by the Parties.
6.2 Events of Default. A default shall occur with respect to a Party, as applicable if: (i) any representation or
warranty made by a Party herein shall prove to have been false or misleading in any material respect when made or
deemed to be repeated, (ii) failure by a Party to perform any covenant set forth in this Agreement which failure is not
cured within fifteen (15) Business Days after written notice thereof to the defaulting party, (iii) a Party shall be subject
to a Bankruptcy Proceeding, (iv) failure by Customer to make, when due, any payment required under this Agreement,
which failure is not remedied within ten (10) Business Days after written notice of such failure is given, (v) failure by
the Customer to provide Assurances pursuant to Article 5 of this Agreement, (vi) Customer enters into another
agreement to purchase Energy from another supplier that covers the term of this Agreement, (vii) Customer terminates
this Agreement early, or (viii) Customer sells, transfers, closes or otherwise abandons the Premises and any successor
to the Premises does not agree to be bound by the terms of this Agreement.
6.3 Remedies. If Seller terminates this Agreement due to a breach by Customer as described in this Article 6,
Seller may at its sole option, immediately discontinue supply of Energy to Customer or transfer Customer to any
applicable supplier of last resort (as may be defined by the applicable local electricity deregulation regulations in
effect). If Customer terminates this Agreement due to breach by Seller as described in this Article 6, Customer shall
have the right to cease its selection of Seller as its alternative energy supplier (“AES”) under the Program and select
another entity as its AES for the purchase of its electricity requirements upon written notice to Seller and in a manner
consistent with the terms and conditions of the Program, RAST, and the applicable rules and regulations of the MPSC.
These rights are in addition to any other rights allowed herein, including but not limited to the rights described in
Sections 6.4 and 6.5.
6.4 Calculation of Seller’s Damages. If Seller terminates this Agreement pursuant to a default by Customer
as described in Section 6.1, the Parties agree, that in addition to all amounts Customer owes Seller prior to the
termination, Seller’s damages shall be the reasonable expenses incurred by Seller in terminating this Agreement.
Seller shall use commercially reasonable efforts to mitigate damages.
6.5 Calculation of Customer’s Damages. If Customer terminates this Agreement pursuant to a default by Seller
as described in Section 6.1, the Parties agree, that in addition to all amounts Seller owes Customer prior to the
termination, Customer’s damages shall be the reasonable expenses incurred by Customer in terminating this
Agreement. Customer shall use reasonable efforts to mitigate damages.
6.6 Payment Of Damages. Damages pursuant to Sections 6.4 and 6.5 shall be paid the later of thirty (30) days
following termination or within ten (10) days of calculation of damages.
ARTICLE 7: TAXES
7.1 Taxes. Customer shall pay every valid tax that is imposed upon Customer.
7.2 Payment of Taxes. Each Party shall pay for taxes that each such Party is required by law to pay. In the
event Customer is exempt from some tax, Customer shall furnish the Seller or other appropriate party with the
necessary written documents demonstrating a valid exemption from payment of such tax.
ARTICLE 8: FORCE MAJEURE
8.1 Force Majeure. No failure or omission by either Party in the performance of any obligation under this
Agreement (except failure or delay by Customer to pay any amount when due) shall be considered a breach of contract,
nor create any liability for damages, if and to the extent such failure or omission shall arise from any cause or causes
beyond the control of such Party (collectively, “Force Majeure”), including but not limited to the failure of the
applicable distribution and transmission company to receive, deliver or otherwise perform, unless caused by a Party’s
failure to perform.
8.2 Force Majeure Procedures. A Party claiming excuse due to Force Majeure shall call or e-mail the other
Party as soon as practicably possible after the occurrence of the Force Majeure, and shall follow-up with written notice
as soon as reasonably possible thereafter. In no event shall Seller be obligated to purchase for delivery and sale Energy
from others in order to replace the Energy curtailed or cut off by reason of Force Majeure.
8.3 Limitations to Force Majeure. No Party shall be entitled to the benefit of the provisions of this Article 8,
(i)to the extent the failure to perform was caused by the sole or contributory negligence of the Party claiming excuse;
or (ii) to the extent the failure to perform was caused by the Party claiming excuse after failing to remedy the condition
and to resume performance with reasonable dispatch.
ARTICLE 9: LIMITATION OF REMEDIES, LIABILITY AND DAMAGES
9.1 Limitation of Liability. THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND DAMAGES
PROVIDED HEREIN SATISFY THE ESSENTIAL PURPOSES HEREOF. THE EXPRESS REMEDIES OR
MEASURE OF DAMAGES HEREIN SHALL BE THE SOLE AND EXCLUSIVE REMEDY. UNLESS
EXPRESSLY HEREIN PROVIDED, PARTIES LIABILITIES SHALL BE LIMITED TO DIRECT ACTUAL
DAMAGES ONLY. SUCH DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY
AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. UNLESS
EXPRESSLY PROVIDED, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL,
PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS
INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY
PROVISION OR OTHERWISE (EXCEPT TO THE EXTENT THAT AN INDEMNIFYING PARTY PURSUANT
TO THE PROVISIONS OF THIS AGREEMENT IS OBLIGATED TO INDEMNIFY AGAINST THIRD PARTY
CLAIMS). THIS ARTICLE 9 SHALL SURVIVE THE EXPIRATION OR TERMINATION OF THE
AGREEMENT AND ALL TRANSACTIONS.
9.2 No Duty or Liability to Non-Parties. Nothing in this Agreement shall be construed to create any duty,
standard of care or liability to any person not a Party to this Agreement.
ARTICLE 10: INDEMNITY
To the extent permitted by law, Customer and Seller (the “Indemnifying Party” as the case may be) agree to
indemnify, defend, and hold the other Party harmless (the “Indemnified Party” as the case may be) from and against
any and all claims, demands, liabilities, losses, costs and expenses including reasonable attorneys’ fees, and causes of
action asserted against each other by any person (including without limitation, the Parties and their employees, agents,
contractors, and subcontractors, and employees of such contractors and subcontractors) for personal injury or death,
loss or damage to property, or fines or penalties, to the extent arising out of the Indemnifying Party’s failure to perform
any of its obligations hereunder. Indemnifying Party shall also indemnify the Indemnified Party from Indemnifying
Party's sole negligence or willful misconduct, in the handling or use of the Energy, or that of Indemnifying Party's
employees, agents, contractors, or subcontractors or in any way arising out of the violations of any federal, state, or
local regulations by Indemnifying Party or its employees, agents, contractors or subcontractors. In the event that an
Indemnifying Party is obligated to indemnify and hold the Indemnified Party harmless, the amount owing to the
Indemnified Party shall be the amount of such Indemnified Party’s actual losses, net of any insurance or other
recovery.
ARTICLE 11: MISCELLANEOUS
11.1 Title and Risk of Loss. Title to the Energy shall pass from Seller to Customer at the Delivery Point. Seller
shall have responsibility for and assume any liability with respect to the Energy prior to its delivery to Customer at
the specified Delivery Point(s). Customer shall have responsibility for and assume any liability with respect to said
Energy at and after its delivery to Customer at the Delivery Point(s).
11.2 Successors and Assigns; Assignment. If Customer transfers or conveys legal title of the Premises to another
party, Customer shall use reasonable efforts to assign this Agreement to any assignee or successor to the Premises,
and Seller shall not unreasonably object to such assignment. Otherwise, Customer may not assign this Agreement to
another party without Seller’s consent, such consent not to be unreasonably withheld. Seller may not assign this
Agreement to another party without Customer’s consent, such consent not to be unreasonably withheld. Any
purported assignment without appropriate consents shall be null and void. Notwithstanding the foregoing, ERM may,
without the need for consent from the Customer (and without relieving itself from liability hereunder), transfer or
assign this Agreement to an affiliate , or to any person or entity succeeding to all or substantially all of the assets of
such Party by way of merger, reorganization or otherwise; provided, however, that no such assignment shall in any
way relieve assignor from liability for full performance under this Agreement and that any such assignee agrees to be
bound by this Agreement; provided further that any permitted assignee has credit status which, in the non-assigning
Party’s sole reasonable opinion, is at least as sound as that of the assignor.
11.3 Confidentiality. Seller and Customer agree to keep all terms and provisions of this Agreement confidential
and not to disclose any terms to a third party without the express written consent of the other Party, provided however
that each party make disclosures to its own agents, attorneys, auditors, accountants and shareholders as may be
reasonably necessary.
11.4 Forward Contract. This Agreement and the transactions hereunder will constitute “forward contracts”
within the meaning of the United States Bankruptcy Code.
11.5 Notices. All notices required in this Agreement shall be deemed to have been properly given when sent by
email, delivered personally, or sent by certified or registered mail with all postage fully prepaid, addressed to the
Parties at addresses set forth below. Notices sent by email shall be deemed to have been received upon the sending
Party’s receipt of confirmation of successful transmission. If the day on which or time at which such email is received
is not a Business Day or is after 5:00 p.m. (at the receiving Party’s place of business) on a Business Day, then such
email shall be deemed to have been received on the next following Business Day.
To Seller
With a copy to Attn: General Counsel, at the same address
To County of Oakland, for Facilities, Maintenance and Operations:
Attn: Joe Murphy
One Public Wo D rks riv Wa e, terfor MI d, 48 328
Phone: 24 8-858-0019
Fax: 248 :452:2250
11.6 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED
AND PERFORMED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
11.7 Entire Agreement. This Agreement constitutes the entire agreement between the Parties relating to the
subject matter contemplated by the Parties. No statement or agreements, oral or written, made prior to or at the signing
hereof, shall vary or modify the terms of this Agreement.
11.8 Severability. The provisions of this Agreement are severable, and if any portion of this Agreement is
prohibited, deemed legally invalid or unenforceable, the remainder of this Agreement shall survive and remain in full
force and effect.
11.9 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same instrument, binding on all Parties hereto.
Transmission by email of the signature page hereof will be conclusive evidence of the execution by such Party of this
Agreement.
11.10 No Third Party Beneficiaries. The provisions of this Agreement shall not impart rights enforceable by any
person or entity not a Party or not a permitted successor or assignee of a Party bound to this Agreement.
11.11 Amendment. No amendment to or modification of any terms and conditions of this Agreement shall be
effective or binding on either Party unless and until agreed to in writing and duly signed by both Parties.
11.12 Waiver. No waiver by either Party of any one or more defaults by the other in the performance of any of the
provisions of this Agreement shall be construed as a waiver of any other default or defaults whether of a like kind or
different nature. The right of either Party to require strict performance by the other of any and/or all obligations
imposed upon the other by this Agreement shall not in any way be affected by previous waivers, forbearance or course
of dealing.
11.13 Duty of Good Faith. Both Parties shall have a duty of good faith and fair dealing with regard to this
Agreement.
11.14 Authorization. Upon signing this Agreement, Customer authorizes Seller to become Customer’s retail
electric provider for the duration of the Agreement. Customer authorizes Seller to act as agent for the sole purpose to
effect any change to Seller, and Customer shall direct its current electric supplier to work with Seller to make this
change happen. Customer and Seller shall provide any information, execute any documents and take any other
reasonable actions necessary to make effectuate Seller as Customer’s supplier of Energy.
11.15 Conflicts with Local Deregulation or Retail Laws. Seller is providing Energy to Customer pursuant to
the Electric Utility’s Program. As such, Seller and Customer shall comply with any Laws enacted by the Electric
Utility, as applicable. Any RAST in effect shall supersede and control in the event of any express conflicts.
11.16 Headings. The headings used for the sections herein are for convenience and reference purposes only, and
shall be ignored in construing this Agreement.
11.17 Transmission Settlements and Services. In the event there is an increase or decrease in the amount of
Renewable Portfolio Standards (“RPS”) required under the Michigan Renewable Energy Laws, network integrated
transmission services (“NITS”) costs, or charges included in the MISO Transmission Settlement incurred and paid by
Seller during the term of this Agreement, the actual cost of such NITS, RPS, and/or MISO Transmission Settlement
charges shall be trued-up by Seller on an annual basis to reflect the actual cost incurred by Seller and passed on to
Customer. Accordingly, the Energy Charge may also be adjusted annually to reflect each of the passthrough charges
noted in this Section 11.17.
11.18 Emergencies, Outages. In the event of any outages, downed wires, or other emergency situation, Customer
should contact the Electric Utility at: Toll Free Number: 1-800-477-4747.
IN WITNESS WHEREOF, the Parties hereto have caused the Agreement to be duly executed as of
the Effective Date.
SELLER:
Name:
Title:
CUSTOMER:
County of Oakland, for Facilities, Maintenance
and Operations
Name:
Title:
One Energy Plaza, Jackson, MI 49201 Phone: (517) 788-0493
EXHIBIT A
ADDITIONAL CONTRACT PROVISIONS
Customer Name: County of Oakland, for Facilities, Maintenance and Operations
Parent Organization (if applicable): County of Oakland
Service Address / Location of Premises*: See Exhibit B
City: State: Zip Code:
Current Electric Utility: DTE Electric Company
Account Number(s) On Current Electric Utility Bill*: See Exhibit B
Customer Name Exactly As Shown On Current Electric Utility Bill*: See Exhibit B
Customer Meter #**: See Exhibit B
*Note: Requested Information Can Be Found On Customer’s Monthly Electric Utility Bill.
**If Customer requires multiple Accounts and Meter #s to be enrolled into the Program, refer to “Exhibit B” for
required Location information and pricing details.
Price
The Energy Charge for all energy used during the Purchase Period = ______ ($/MWh, based on metered volumes)
Seller agrees that the Energy Charge includes all energy and nonenergy electric supply costs required by MISO and
under the Michigan Renewable Energy Laws in effect as of the Effective Date of this Agreement, including the
following:
Energy
Capacity
75% Renewable Portfolio Standards
Ancillary Service Charges (as authorized by MISO Tariff and regulated by FERC)
Network Integrated Transmission Service costs
Transmission and Distribution Line losses
Congestion
Any increase or decrease to the ancillary service charges (authorized by MISO) subsequent to the execution of this
Agreement shall be directly passed through to the Customer by a corresponding increase or decrease in the Energy
Charge stated above. In the event of a change in law under the Michigan Renewable Energy Laws following the
Effective Date of this Agreement, the parties agree to work together and negotiate in good faith to determine the
change in pricing of the Energy Charge to maintain the economics under this Agreement.
The Energy Charge above does not include RASR charges (i.e. distribution service) or other charges the
Electric Utility may impose that is separate from the Energy & Capacity Price. Seller takes sole responsibility of
and will pay or reimburse Customer for any State Reliability Mechanism charged by the Electric Utility. Such
RASR and other
charges are MPSC approved and will continue to be billed by the Electric Utility. Information regarding the rates,
terms and conditions of distribution services can be obtained by contacting your current Electric Utility.
EXHIBIT B Only Commercial & Industrial Electric Service Accounts Will Be Accepted List Electric Service Accounts to be enrolled into the Electric Choice Program for County of Oakland, for Facilities, Maintenance and Operations Line # Account # Meter # Customer/Company Name Service Address / Location (Street Address, City, State, Zip) 1 910000051029 10011841/10011871 Oakland County Service Center 2250 PONTIAC LK RD WATERFORD, MI 48328 2 910000055897 3398956 Oakland County FMO 250 ELIZABETH LAKE RD PONTIAC, MI 48341‐0414 3 910000065649 10065883 Oakland County 1151 CROOKS RD TROY, MI 48084‐7136 4 910000072546 2994104 Oakland County Maintenance 1155 OAKLAND AVE PONTIAC, MI 48340‐2346 5 910000072595 3398954 Oakland County Maintenance 230 ELIZABETH LAKE RD PONTIAC, MI 48341‐1011 6 910000072603 8299272 Oakland County Maintenance 230 ELIZABETH LAKE RD PONTIAC, MI 48341‐1011 7 910000072629 3398953 Oakland County Maintenance 250 ELIZABETH LAKE RD PONTIAC, MI 48341‐0414 8 910000072694 7928266 Oakland County Maintenance 27725 GREENFIELD RD SOUTHFIELD, MI 48076‐3663 9 910000074500 3398955 Oakland County Maintenance 250 ELIZABETH LAKE RD PONTIAC, MI 48341‐0414 10 910013192786 5471174 Oakland County Accts. Payable FMO 1340 TELEGRAPH RD N PONTIAC, MI 48341 11 920035553493 5985488 Oakland County 700 BARCLAY CIRCLE ROCHESTER, MI 48307 12 920033988600 7954800 Oakland County Sheriffs Office 38F Attn: Karen Luna 300 SOUTH ST ORTONVILLE, MI 48462‐8870 13 14 15
RETAIL ELECTRIC
SALES AGREEMENT
This RETAIL SALES AGREEMENT (together with Exhibit A and Exhibit B, the “Agreement”), dated
as of August 1, 2022 (the “Effective Date”), is by and between Seller and the party set forth on the Exhibit A
attached hereto (“Customer”). Seller and Customer can be individually referred to as a “Party” or collectively as
“Parties.”
WHEREAS, the Parties wish to sell and purchase certain Energy (as hereinafter defined) through
transactions that they will enter into with each other as Customer and Seller;
WHEREAS, the Parties acknowledge that this Agreement is subject to the terms and conditions of The DTE
Electric Choice Program (“Program”) and its Retail Access Service Rider (“RASR”) as approved by the
Michigan Public Service Commission (“MPSC”) and the applicable rules and regulations of the MPSC.2
NOW, THEREFORE, in consideration of the mutual covenant contained herein, the Parties agree as follows:
ARTICLE 1: DEFINITIONS
In addition to the other terms defined herein, the following terms shall have the meanings set forth below:
“Bankruptcy Proceeding” means with respect to a Party or entity, such Party or entity (i) makes an assignment or any
general arrangement for the benefit of creditors, (ii) files a petition or otherwise commences, authorizes or acquiesces
in the commencement of a proceeding or cause under any bankruptcy or similar law for the protection of creditors,
(iii) has such petition filed against it and such proceeding remains un-dismissed for 30 days, (iv) otherwise becomes
bankrupt or insolvent (however evidenced), or (v) is unable to pay its debts as they fall due.
“Business Day” means a day on which Federal Reserve member banks in New York City are open for business. A
Business Day shall open at 8:00 a.m. and close at 5:00 p.m. local time for each Party’s principal place of business.
“Contract Quantity” means the projected amount of Energy that Customer will utilize based on available information
at the time this Agreement is executed. Seller agrees to sell to Customer, and Customer agrees to purchase from Seller,
100% of its energy needs, pursuant to the Agreement.
“Capacity” means the generation resources utilized by Seller to comply with the Resource Adequacy Requirement,
the Customer’s Capacity PLC, and the SRM. All Capacity shall be sourced from a capacity resource located within
MISO Local Resource Zone 7.
“Customer Capacity PLC” means the Customer peak load contribution as assigned by MISO and calculated by the
Electric Utility.
“Delivery Point” means the point(s) of interconnection (DTE Load Zone) between the Electric Utility and Customer’s
end use meter where Seller will arrange for delivery of supply to the Customer at or near the Premises.
“Electric Utility” means DTE Electric Company, a Michigan corporation regulated by the MPSC.
“Energy” means electricity or other product described in the Agreement.
2 Customer can learn more about the Program, RASR and the MPSC at the following web address:
https://www.michigan.gov/mpsc/0,9535,7-395-93308_93325_93423_93501_93509---,00.html.
“Energy Charge” means the price in $U.S. to be paid by Customer to Seller for the purchase of Energy or any other
payment to be made by Customer to Seller in connection with the Agreement as set forth on Exhibit A attached hereto.
“Interest Rate” means, for any date, two percent over the per annum rate of interest equal to the prime lending rate
as may from time to time be published in the Wall Street Journal under “Money Rates” provided, however, that the
Interest Rate shall never exceed the maximum lawful rate.
“Law” means any applicable law, rule, regulation, order, writ, judgment, decree or other legal or regulatory
determination.
“Legal Proceedings” means any suits, arbitrations, proceedings, judgments, rulings or orders by or before any
tribunal, court or any governmental authority.
“Michigan Renewable Energy Laws” means the Michigan Compiled Laws § 460.1011 et seq., and any regulations
promulgated with respect thereto.
“MISO” means the Midcontinent Independent System Operator, Inc.
“MISO Tariff” means MISO’s Open Access Transmission, Energy and Operating Reserve Markets Tariff on file with
the FERC, as may be amended from time to time.
“MISO Transmission Settlement” means MISO’s Transmission Settlements Business Practice Manual BPM-012.
“Premises” means the facilities owned or operated by Customer that consumes the delivered Energy, generally located
at or near the Delivery Point(s).
“Program” means The DTE Electric Choice Program as approved by the MPSC.
“RAST” means the Electric Utility’s Retail Access Service Rider as approved by the MPSC.
“SRM” means the Electric Utility’s state reliability mechanism as approved by the MPSC.
ARTICLE 2: REPRESENTATIONS AND WARRANTIES
2.1 Representations And Warranties. Each Party represents and warrants to the other Party that (i) it is duly
organized, validly existing, in good standing and qualified to conduct and carry out its business; (ii) all regulatory
authorizations necessary to legally perform obligations under this Agreement are met; (iii) it has the power and
authority to enter into, perform its obligations under this Agreement; (iv) the execution, delivery and performance of
this Agreement have been duly authorized and does not violate any law or regulation, (v) this Agreement is a legally
valid and binding obligation enforceable against it in accordance with its terms, (vi) there are no Bankruptcy
Proceedings pending or being contemplated by it or to its knowledge, threatened against it; (vii) there are no Legal
Proceedings that materially adversely affect its ability to perform this Agreement.
ARTICLE 3: OBLIGATIONS AND DELIVERIES
3.1 Seller’s and Customer’s Obligations. Seller shall sell and Customer shall purchase the Contract Quantity
of Energy as described in this Agreement. Customer shall pay Seller the Energy & Capacity Price (as described in
the Additional Exhibit A) as well as any other charges specified in the Energy Charge set forth on Exhibit A.
Notwithstanding, the Parties acknowledge and agree that Seller is not a "utility" within the meaning of Section 366
of the Bankruptcy Code (11 U.S.C. 366) and that upon filing of a bankruptcy petition by or against Customer,
Seller shall only have an obligation to continue selling to Customer if required by other provisions of this
Agreement, and only if Seller receives satisfactory assurance of Customer's creditworthiness and ability to
perform as otherwise provided in this Agreement.
3.2 Warranty. Seller warrants that (i) it has title to all Energy sold and delivered by it to Customer, free and
clear of all taxes, liens, claims, security interests, encumbrances and other defects of title and (ii) it has the right to sell
such Energy. SELLER EXPRESSLY DISCLAIMS AND NEGATES ANY OTHER REPRESENTATION OR
WARRANTY, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY
REPRESENTATION OR WARRANTY WITH RESPECT TO CONFORMITY TO MODELS OR SAMPLES,
MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE. This Section 3.2 shall survive
expiration or termination of this Agreement.
3.3 Contract Quantity. Unless otherwise stated in Exhibit A, Seller shall supply all of Customer’s Energy
requirements or usage at the Premises.
3.4 Deliveries. Seller shall deliver the Energy to Customer at the Delivery Point. Title to all supply delivered
by Seller hereunder shall pass from Seller to the Customer at the Delivery Point (or as referred to in Exhibit A).
3.5 Term.
(i)Following acceptance and successful enrollment, Customer agrees to purchase its full electricity
requirements from Seller for the period (a) beginning on the Customer’s last scheduled meter read
date during the planning year immediately preceding the Commencement Date on or around June
1, 2026 (the “Commencement Date”) in the Program through (b) the Customer’s next scheduled
meter read date immediately following the [ Ten (10) ] year anniversary3 of the Commencement
Date (such period from clause (a) to clause (b) is the “Purchase Period”). The RAST defines the
terms and conditions that constitute acceptance and successful enrollment into the Program.
Customer acknowledges that for any service location (identified in Exhibit A or on Exhibit B) not
accepted and/or successfully enrolled within forty-five (45) days of the date of this Agreement,
Seller reserves the right to revise or rescind this offer. If, as a result of ERM’s sole negligence, the
enrollment with the Electric Utility is not successful, ERM will reimburse the Customer for any
positive difference between the Electric Charge in this Agreement and the actual cost incurred by
the Customer for the replacement electric supply for the time between the planned Commencement
Date and the actual Commencement Date.
(ii)At the expiration of the Purchase Period, this Agreement shall automatically terminate, and if no
other alternative energy supplier has been selected, then the Customer shall be returned to tariff
service provided by the Electric Utility in accordance with the RASR. Customer agrees to provide
Seller with at least 180 days prior written notice of its intent to be returned to tariff service provided
by the Electric Utility or to select an alternative energy supplier, as the case may be.
3.6 Metering. Metering or any other measurement equipment shall be as described in Exhibit A, and if not fully
described in Exhibit A, metering or measurement equipment shall be installed, maintained, serviced, tested and
measured by the applicable local distribution or Electric Utility, or its successor, in accordance with its tariff. Unless
otherwise stated in Exhibit A, Seller is not responsible for any costs of metering or measurement equipment, or the
installation, maintenance, service, testing or measurement thereof. Seller is not responsible or liable to Customer for
failure to delivery Energy if any required metering or measurement equipment is not in place.
3.7 Changed Energy Needs.
(i) If during the term of this Agreement, Customer’s monthly electricity usage increases or
decreases over 25% for six consecutive months due to expansion or contraction of the Premises,
Customer and Seller shall negotiate in good faith to determine the pricing for such added or reduced
quantities of Energy requirements.
(ii)If the Customer closes, abandons or demolishes the Premises and the Premises’ meter is taken
out of service, the Customer shall have no further obligation under this Agreement for the Premises
as identified in Exhibit B; provided, however, the Customer has provided Seller with at least 60
days prior written notice.
3 Term to be a minimum of ten years.
In the event Customer’s sells the Premises, the Customer will negotiate in good faith to have the Premises as identified
in Exhibit B transferred to such buyer as further described in Section 11.2.
ARTICLE 4: BILLING AND PAYMENT
4.1 Invoices. Customer will receive one bill from the Electric Utility, which will include all associated charges
identified in the Price section set forth on Exhibit A. If Energy Charge on the bill received from the Electric Utility
does not match the Energy Charge in this Agreement, Customer shall have the right to dispute such charge and request
a reasonably detailed explanation of the difference between Energy Charge on Electric Utility bill and the Energy
Charge in the Agreement. Seller will provide a response to the Customer within a commercially reasonable amount
of time with an explanation of the difference between Energy Charge on Electric Utility bill and the Energy Charge
in the Agreement. Customer agrees to pay all non-disputed amounts owed to Seller when due by remitting payment
to the Electric Utility, which in turn will remit associated payment to Seller. If the Electric Utility fails to perform its
billing responsibilities, Seller reserves the right to bill the Customer directly its monthly Energy Charges for service
rendered. Upon 60 days following nonpayment when due of any non-disputed amounts owed, Seller shall have the
right to terminate this Agreement without fault or liability, and the Customer shall be responsible for timely notifying
the Electric Utility that is desires to be returned to Full Service in accordance with the RASR.
4.2 Failure to Pay. In the event Customer fails to pay the full amount payable by Customer when due and absent
a legitimate dispute as to whether such amount is due, interest on the unpaid portion shall be charged from the date
due until the date of payment at a rate equal to the lower of (i) the Interest Rate, or (ii) the maximum applicable lawful
interest rate.
4.3 Invoice Errors and Disputes. If an error is discovered in any invoice, the error shall be rectified within ten
(10)business days after notice of the discovery of the error. If a dispute arises as to the amount payable in any invoice,
Customer shall pay when due the amount not in dispute and the disputing Party shall provide the other Party written
notice including a detailed description of the specific basis of the dispute. The Parties shall first attempt to resolve the
dispute through the representatives of the Parties with authority to settle disputes on an informal basis. Prior to the
conclusion of such informal attempts to resolve the dispute, or ten (10) business days, whichever is shorter, neither
Party shall seek resolution through the Electric Utility, or the MPSC. During this reconciliation, no late charges will
accrue.
ARTICLE 5: FINANCIAL RESPONSIBILITY
5.1 Initial Assurance of Performance. Prior to the start of any supply of Energy by Seller, Seller has the option
to require Customer to provide assurances of performance in a form satisfactory to Customer in order to secure
Customer’s performance. Assurances may, at the option of Customer, include prepayment, letter of credit, or guaranty
from a party determined by Seller in its sole discretion to be creditworthy (“Assurances”). Customer may be required
to provide new or additional Assurances in the future. If Seller does not initially require Assurances, that shall not
prevent Seller in any way of requiring Assurances at a later date.
5.2 Other Assurances of Performance. If during the term of this Agreement, Seller (i) in its sole good faith
opinion, determines that there has been a material adverse change in Customer’s credit status or financial condition
(for example, but not limited to, a credit/bond rating lower than “BBB-”), or Customer becomes more than ten (10)
days in arrears in paying its bills hereunder, then Seller may demand in writing Assurances from Customer.
Furthermore, if during the term of this Agreement, the calculated damages payable under Section 6.4 below exceed
five percent of the total revenue Seller is to obtain under this Agreement (the “Threshold Amount”), Seller may
demand Assurances for the amount that such calculated damages exceed the Threshold Amount. Any Assurances
received by Seller shall be returned once the calculated damages in Section 6.4 is less than the Threshold Amount.
5.3 Remedy for Failure to Provide Assurances. Should Seller not receive satisfactory Assurances within ten
(10) days of a written request sent to Customer, Seller shall have the right to immediately suspend performance without
further notice.
ARTICLE 6: DEFAULTS AND REMEDIES
6.1 Damages for Failure to Deliver or Receive. Each Party shall be liable for those damages or losses directly
arising from its breach of any delivery or receipt obligation. The remedy for breach shall be Customer’s actual loss on
the commercially reasonable purchase of replacement Energy made in good faith, or Seller’s actual loss on the
commercially reasonable resale of Energy made in good faith; provided, however, if no such replacement or resale is
made, then a market price most applicable to the Energy, to be mutually determined in a commercially reasonable
manner by the Parties, which may be based on quotations from at least two (2) leading dealers, brokers or industry
participants reasonably selected by the Parties.
6.2 Events of Default. A default shall occur with respect to a Party, as applicable if: (i) any representation or
warranty made by a Party herein shall prove to have been false or misleading in any material respect when made or
deemed to be repeated, (ii) failure by a Party to perform any covenant set forth in this Agreement which failure is not
cured within fifteen (15) Business Days after written notice thereof to the defaulting party, (iii) a Party shall be subject
to a Bankruptcy Proceeding, (iv) failure by Customer to make, when due, any payment required under this Agreement,
which failure is not remedied within ten (10) Business Days after written notice of such failure is given, (v) failure by
the Customer to provide Assurances pursuant to Article 5 of this Agreement, (vi) Customer enters into another
agreement to purchase Energy from another supplier that covers the term of this Agreement, (vii) Customer terminates
this Agreement early, or (viii) Customer sells, transfers, closes or otherwise abandons the Premises and any successor
to the Premises does not agree to be bound by the terms of this Agreement.
6.3 Remedies. If Seller terminates this Agreement due to a breach by Customer as described in this Article 6,
Seller may at its sole option, immediately discontinue supply of Energy to Customer or transfer Customer to any
applicable supplier of last resort (as may be defined by the applicable local electricity deregulation regulations in
effect). If Customer terminates this Agreement due to breach by Seller as described in this Article 6, Customer shall
have the right to cease its selection of Seller as its alternative energy supplier (“AES”) under the Program and select
another entity as its AES for the purchase of its electricity requirements upon written notice to Seller and in a manner
consistent with the terms and conditions of the Program, RAST, and the applicable rules and regulations of the MPSC.
These rights are in addition to any other rights allowed herein, including but not limited to the rights described in
Sections 6.4 and 6.5.
6.4 Calculation of Seller’s Damages. If Seller terminates this Agreement pursuant to a default by Customer
as described in Section 6.1, the Parties agree, that in addition to all amounts Customer owes Seller prior to the
termination, Seller’s damages shall be the reasonable expenses incurred by Seller in terminating this Agreement.
Seller shall use commercially reasonable efforts to mitigate damages.
6.5 Calculation of Customer’s Damages. If Customer terminates this Agreement pursuant to a default by Seller
as described in Section 6.1, the Parties agree, that in addition to all amounts Seller owes Customer prior to the
termination, Customer’s damages shall be the reasonable expenses incurred by Customer in terminating this
Agreement. Customer shall use reasonable efforts to mitigate damages.
6.6 Payment Of Damages. Damages pursuant to Sections 6.4 and 6.5 shall be paid the later of thirty (30) days
following termination or within ten (10) days of calculation of damages.
ARTICLE 7: TAXES
7.1 Taxes. Customer shall pay every valid tax that is imposed upon Customer.
7.2 Payment of Taxes. Each Party shall pay for taxes that each such Party is required by law to pay. In the
event Customer is exempt from some tax, Customer shall furnish the Seller or other appropriate party with the
necessary written documents demonstrating a valid exemption from payment of such tax.
ARTICLE 8: FORCE MAJEURE
8.1 Force Majeure. No failure or omission by either Party in the performance of any obligation under this
Agreement (except failure or delay by Customer to pay any amount when due) shall be considered a breach of contract,
nor create any liability for damages, if and to the extent such failure or omission shall arise from any cause or causes
beyond the control of such Party (collectively, “Force Majeure”), including but not limited to the failure of the
applicable distribution and transmission company to receive, deliver or otherwise perform, unless caused by a Party’s
failure to perform.
8.2 Force Majeure Procedures. A Party claiming excuse due to Force Majeure shall call or e-mail the other
Party as soon as practicably possible after the occurrence of the Force Majeure, and shall follow-up with written notice
as soon as reasonably possible thereafter. In no event shall Seller be obligated to purchase for delivery and sale Energy
from others in order to replace the Energy curtailed or cut off by reason of Force Majeure.
8.3 Limitations to Force Majeure. No Party shall be entitled to the benefit of the provisions of this Article 8,
(i)to the extent the failure to perform was caused by the sole or contributory negligence of the Party claiming excuse;
or (ii) to the extent the failure to perform was caused by the Party claiming excuse after failing to remedy the condition
and to resume performance with reasonable dispatch.
ARTICLE 9: LIMITATION OF REMEDIES, LIABILITY AND DAMAGES
9.1 Limitation of Liability. THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND DAMAGES
PROVIDED HEREIN SATISFY THE ESSENTIAL PURPOSES HEREOF. THE EXPRESS REMEDIES OR
MEASURE OF DAMAGES HEREIN SHALL BE THE SOLE AND EXCLUSIVE REMEDY. UNLESS
EXPRESSLY HEREIN PROVIDED, PARTIES LIABILITIES SHALL BE LIMITED TO DIRECT ACTUAL
DAMAGES ONLY. SUCH DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY
AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. UNLESS
EXPRESSLY PROVIDED, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL,
PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS
INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY
PROVISION OR OTHERWISE (EXCEPT TO THE EXTENT THAT AN INDEMNIFYING PARTY PURSUANT
TO THE PROVISIONS OF THIS AGREEMENT IS OBLIGATED TO INDEMNIFY AGAINST THIRD PARTY
CLAIMS). THIS ARTICLE 9 SHALL SURVIVE THE EXPIRATION OR TERMINATION OF THE
AGREEMENT AND ALL TRANSACTIONS.
9.2 No Duty or Liability to Non-Parties. Nothing in this Agreement shall be construed to create any duty,
standard of care or liability to any person not a Party to this Agreement.
ARTICLE 10: INDEMNITY
To the extent permitted by law, Customer and Seller (the “Indemnifying Party” as the case may be) agree to
indemnify, defend, and hold the other Party harmless (the “Indemnified Party” as the case may be) from and against
any and all claims, demands, liabilities, losses, costs and expenses including reasonable attorneys’ fees, and causes of
action asserted against each other by any person (including without limitation, the Parties and their employees, agents,
contractors, and subcontractors, and employees of such contractors and subcontractors) for personal injury or death,
loss or damage to property, or fines or penalties, to the extent arising out of the Indemnifying Party’s failure to perform
any of its obligations hereunder. Indemnifying Party shall also indemnify the Indemnified Party from Indemnifying
Party's sole negligence or willful misconduct, in the handling or use of the Energy, or that of Indemnifying Party's
employees, agents, contractors, or subcontractors or in any way arising out of the violations of any federal, state, or
local regulations by Indemnifying Party or its employees, agents, contractors or subcontractors. In the event that an
Indemnifying Party is obligated to indemnify and hold the Indemnified Party harmless, the amount owing to the
Indemnified Party shall be the amount of such Indemnified Party’s actual losses, net of any insurance or other
recovery.
ARTICLE 11: MISCELLANEOUS
11.1 Title and Risk of Loss. Title to the Energy shall pass from Seller to Customer at the Delivery Point. Seller
shall have responsibility for and assume any liability with respect to the Energy prior to its delivery to Customer at
the specified Delivery Point(s). Customer shall have responsibility for and assume any liability with respect to said
Energy at and after its delivery to Customer at the Delivery Point(s).
11.2 Successors and Assigns; Assignment. If Customer transfers or conveys legal title of the Premises to another
party, Customer shall use reasonable efforts to assign this Agreement to any assignee or successor to the Premises,
and Seller shall not unreasonably object to such assignment. Otherwise, Customer may not assign this Agreement to
another party without Seller’s consent, such consent not to be unreasonably withheld. Seller may not assign this
Agreement to another party without Customer’s consent, such consent not to be unreasonably withheld.
Any purported assignment without appropriate consents shall be null and void. Notwithstanding the foregoing,
Seller may, without the need for consent from the Customer (and without relieving itself from liability
hereunder), transfer or assign this Agreement to an affiliate , or to any person or entity succeeding to all or
substantially all of the assets of such Party by way of merger, reorganization or otherwise; provided, however, that
no such assignment shall in any way relieve assignor from liability for full performance under this Agreement and
that any such assignee agrees to be bound by this Agreement; provided further that any permitted assignee has
credit status which, in the non-assigning Party’s sole reasonable opinion, is at least as sound as that of the assignor.
11.3 Confidentiality. Seller and Customer agree to keep all terms and provisions of this Agreement confidential
and not to disclose any terms to a third party without the express written consent of the other Party, provided however
that each party make disclosures to its own agents, attorneys, auditors, accountants and shareholders as may be
reasonably necessary.
11.4 Forward Contract. This Agreement and the transactions hereunder will constitute “forward contracts”
within the meaning of the United States Bankruptcy Code.
11.5 Notices. All notices required in this Agreement shall be deemed to have been properly given when sent by
email, delivered personally, or sent by certified or registered mail with all postage fully prepaid, addressed to the
Parties at addresses set forth below. Notices sent by email shall be deemed to have been received upon the sending
Party’s receipt of confirmation of successful transmission. If the day on which or time at which such email is received
is not a Business Day or is after 5:00 p.m. (at the receiving Party’s place of business) on a Business Day, then such
email shall be deemed to have been received on the next following Business Day.
To Seller
With a copy to Attn: General Counsel, at the same address
To County of Oakland, for Oakland County Parks and
Recreation: Attn Sa: Co rah ok-Maylen
2800 Wat k La ins Ro ke ad Wat , erford, 48 MI 328
Phone: 24 8-343-1353
Fax:
11.6 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED
AND PERFORMED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
11.7 Entire Agreement. This Agreement constitutes the entire agreement between the Parties relating to the
subject matter contemplated by the Parties. No statement or agreements, oral or written, made prior to or at the signing
hereof, shall vary or modify the terms of this Agreement.
11.8 Severability. The provisions of this Agreement are severable, and if any portion of this Agreement is
prohibited, deemed legally invalid or unenforceable, the remainder of this Agreement shall survive and remain in full
force and effect.
11.9 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same instrument, binding on all Parties hereto.
Transmission by email of the signature page hereof will be conclusive evidence of the execution by such Party of this
Agreement.
11.10 No Third Party Beneficiaries. The provisions of this Agreement shall not impart rights enforceable by any
person or entity not a Party or not a permitted successor or assignee of a Party bound to this Agreement.
11.11 Amendment. No amendment to or modification of any terms and conditions of this Agreement shall be
effective or binding on either Party unless and until agreed to in writing and duly signed by both Parties.
11.12 Waiver. No waiver by either Party of any one or more defaults by the other in the performance of any of the
provisions of this Agreement shall be construed as a waiver of any other default or defaults whether of a like kind or
different nature. The right of either Party to require strict performance by the other of any and/or all obligations
imposed upon the other by this Agreement shall not in any way be affected by previous waivers, forbearance or course
of dealing.
11.13 Duty of Good Faith. Both Parties shall have a duty of good faith and fair dealing with regard to this
Agreement.
11.14 Authorization. Upon signing this Agreement, Customer authorizes Seller to become Customer’s retail
electric provider for the duration of the Agreement. Customer authorizes Seller to act as agent for the sole purpose to
effect any change to Seller, and Customer shall direct its current electric supplier to work with Seller to make this
change happen. Customer and Seller shall provide any information, execute any documents and take any other
reasonable actions necessary to make effectuate Seller as Customer’s supplier of Energy.
11.15 Conflicts with Local Deregulation or Retail Laws. Seller is providing Energy to Customer pursuant to
the Electric Utility’s Program. As such, Seller and Customer shall comply with any Laws enacted by the Electric
Utility, as applicable. Any RAST in effect shall supersede and control in the event of any express conflicts.
11.16 Headings. The headings used for the sections herein are for convenience and reference purposes only, and
shall be ignored in construing this Agreement.
11.17 Transmission Settlements and Services. In the event there is an increase or decrease in the amount of
Renewable Portfolio Standards (“RPS”) required under the Michigan Renewable Energy Laws, network integrated
transmission services (“NITS”) costs, or charges included in the MISO Transmission Settlement incurred and paid by
Seller during the term of this Agreement, the actual cost of such NITS, RPS, and/or MISO Transmission Settlement
charges shall be trued-up by Seller on an annual basis to reflect the actual cost incurred by Seller and passed on to
Customer. Accordingly, the Energy Charge may also be adjusted annually to reflect each of the passthrough charges
noted in this Section 11.17.
11.18 Emergencies, Outages. In the event of any outages, downed wires, or other emergency situation, Customer
should contact the Electric Utility at: Toll Free Number: 1-800-477-4747.
IN WITNESS WHEREOF, the Parties hereto have caused the Agreement to be duly executed as of
the Effective Date.
SELLER:
Name:
Title:
CUSTOMER:
County of Oakland, for Oakland County Parks
and Recreation
Name:
Title:
One Energy Plaza, Jackson, MI 49201 Phone: (517) 788-0493
EXHIBIT A
ADDITIONAL CONTRACT PROVISIONS
Customer Name: County of Oakland, for Oakland County Parks and Recreation
Parent Organization (if applicable): County of Oakland
Service Address / Location of Premises*: See Exhibit B
City: State: Zip Code:
Current Electric Utility: DTE Electric Company
Account Number(s) On Current Electric Utility Bill*: See Exhibit B
Customer Name Exactly As Shown On Current Electric Utility Bill*: See Exhibit B
Customer Meter #**: See Exhibit B
*Note: Requested Information Can Be Found On Customer’s Monthly Electric Utility Bill.
**If Customer requires multiple Accounts and Meter #s to be enrolled into the Program, refer to “Exhibit B” for
required Location information and pricing details.
Price
The Energy Charge for all energy used during the Purchase Period = ______($/MWh, based on metered volumes)
Seller agrees that the Energy Charge includes all energy and nonenergy electric supply costs required by MISO and
under the Michigan Renewable Energy Laws in effect as of the Effective Date of this Agreement, including the
following:
Energy
Capacity
75% Renewable Portfolio Standards
Ancillary Service Charges (as authorized by MISO Tariff and regulated by FERC)
Network Integrated Transmission Service costs
Transmission and Distribution Line losses
Congestion
Any increase or decrease to the ancillary service charges (authorized by MISO) subsequent to the execution of this
Agreement shall be directly passed through to the Customer by a corresponding increase or decrease in the Energy
Charge stated above. In the event of a change in law under the Michigan Renewable Energy Laws following the
Effective Date of this Agreement, the parties agree to work together and negotiate in good faith to determine the
change in pricing of the Energy Charge to maintain the economics under this Agreement.
The Energy Charge above does not include RASR charges (i.e. distribution service) or other charges the
Electric Utility may impose that is separate from the Energy & Capacity Price. Seller takes sole responsibility of
and will pay or reimburse Customer for any State Reliability Mechanism charged by the Electric Utility. Such
RASR and other
charges are MPSC approved and will continue to be billed by the Electric Utility. Information regarding the rates,
terms and conditions of distribution services can be obtained by contacting your current Electric Utility.
EXHIBIT B Only Commercial & Industrial Electric Service Accounts Will Be Accepted List Electric Service Accounts to be enrolled into the Electric Choice Program for County of Oakland, for Oakland County Parks and Recreation Line # Account # Meter # Customer/Company Name Service Address / Location (Street Address, City, State, Zip) 1 910000051862 8599739 Oakland County12400 ANDERSONVILLE SPRINGFIELD, MI 48350 2 910000051870 8599736 Oakland County12451 ANDERSONVILLE RD DAVISBURG, MI 48350‐3038 3 910000052621 7954620 Oakland County Parks & Recreation 1712 SCOTT LK RD WATERFORD, MI 48328 4 910012781472 5577446 Oakland County Parks & Recreation Waterford Oaks Rear 2800 WATKINS LAKE WATERFORD, MI 48328 5 910015361520 10194431 Oakland County Parks & Recreation 1690 SCOTT LK WATERFORD, MI 48328 6 910015367824 5512675 Oakland County Parks & Recreation 30300 OLD PLANK RD WIXOM, MI 48393 7 910016218430 5577273 Waterford Township Activities 1702 SCOTT LAKE WATERFORD, MI 48328 8 910040883019 2994102 Oakland County Parks & Recreation 2804 WATKINS LAKE RD WATERFORD, MI 48328 9 910040883118 7928685 Oakland County Parks & Recreation 9595 SASHABAW RD INDEPENDENCE, MI 48348 10 11 12 13 14 15
RETAIL ELECTRIC
SALES AGREEMENT
This RETAIL SALES AGREEMENT (together with Exhibit A and Exhibit B, the “Agreement”), dated
as of August 1, 2022 (the “Effective Date”), is by and between Seller and the party set forth on the Exhibit A
attached hereto (“Customer”). Seller and Customer can be individually referred to as a “Party” or collectively as
“Parties.”
WHEREAS, the Parties wish to sell and purchase certain Energy (as hereinafter defined) through transactions
that they will enter into with each other as Customer and Seller;
WHEREAS, the Parties acknowledge that this Agreement is subject to the terms and conditions of The DTE
Electric Choice Program (“Program”) and its Retail Access Service Rider (“RASR”) as approved by the Michigan
Public Service Commission (“MPSC”) and the applicable rules and regulations of the MPSC.2
NOW, THEREFORE, in consideration of the mutual covenant contained herein, the Parties agree as follows:
ARTICLE 1: DEFINITIONS
In addition to the other terms defined herein, the following terms shall have the meanings set forth below:
“Bankruptcy Proceeding” means with respect to a Party or entity, such Party or entity (i) makes an assignment or any
general arrangement for the benefit of creditors, (ii) files a petition or otherwise commences, authorizes or acquiesces
in the commencement of a proceeding or cause under any bankruptcy or similar law for the protection of creditors,
(iii) has such petition filed against it and such proceeding remains un-dismissed for 30 days, (iv) otherwise becomes
bankrupt or insolvent (however evidenced), or (v) is unable to pay its debts as they fall due.
“Business Day” means a day on which Federal Reserve member banks in New York City are open for business. A
Business Day shall open at 8:00 a.m. and close at 5:00 p.m. local time for each Party’s principal place of business.
“Contract Quantity” means the projected amount of Energy that Customer will utilize based on available information
at the time this Agreement is executed. Seller agrees to sell to Customer, and Customer agrees to purchase from Seller,
100% of its energy needs, pursuant to the Agreement.
“Capacity” means the generation resources utilized by Seller to comply with the Resource Adequacy Requirement,
the Customer’s Capacity PLC, and the SRM. All Capacity shall be sourced from a capacity resource located within
MISO Local Resource Zone 7.
“Customer Capacity PLC” means the Customer peak load contribution as assigned by MISO and calculated by the
Electric Utility.
“Delivery Point” means the point(s) of interconnection (DTE Load Zone) between the Electric Utility and Customer’s
end use meter where Seller will arrange for delivery of supply to the Customer at or near the Premises.
“Electric Utility” means DTE Electric Company, a Michigan corporation regulated by the MPSC.
“Energy” means electricity or other product described in the Agreement.
2 Customer can learn more about the Program, RASR and the MPSC at the following web address:
https://www.michigan.gov/mpsc/0,9535,7-395-93308_93325_93423_93501_93509---,00.html.
“Energy Charge” means the price in $U.S. to be paid by Customer to Seller for the purchase of Energy or any other
payment to be made by Customer to Seller in connection with the Agreement as set forth on Exhibit A attached hereto.
“Interest Rate” means, for any date, two percent over the per annum rate of interest equal to the prime lending rate
as may from time to time be published in the Wall Street Journal under “Money Rates” provided, however, that the
Interest Rate shall never exceed the maximum lawful rate.
“Law” means any applicable law, rule, regulation, order, writ, judgment, decree or other legal or regulatory
determination.
“Legal Proceedings” means any suits, arbitrations, proceedings, judgments, rulings or orders by or before any
tribunal, court or any governmental authority.
“Michigan Renewable Energy Laws” means the Michigan Compiled Laws § 460.1011 et seq., and any regulations
promulgated with respect thereto.
“MISO” means the Midcontinent Independent System Operator, Inc.
“MISO Tariff” means MISO’s Open Access Transmission, Energy and Operating Reserve Markets Tariff on file with
the FERC, as may be amended from time to time.
“MISO Transmission Settlement” means MISO’s Transmission Settlements Business Practice Manual BPM-012.
“Premises” means the facilities owned or operated by Customer that consumes the delivered Energy, generally located
at or near the Delivery Point(s).
“Program” means The DTE Electric Choice Program as approved by the MPSC.
“RAST” means the Electric Utility’s Retail Access Service Rider as approved by the MPSC.
“SRM” means the Electric Utility’s state reliability mechanism as approved by the MPSC.
ARTICLE 2: REPRESENTATIONS AND WARRANTIES
2.1 Representations And Warranties. Each Party represents and warrants to the other Party that (i) it is duly
organized, validly existing, in good standing and qualified to conduct and carry out its business; (ii) all regulatory
authorizations necessary to legally perform obligations under this Agreement are met; (iii) it has the power and
authority to enter into, perform its obligations under this Agreement; (iv) the execution, delivery and performance of
this Agreement have been duly authorized and does not violate any law or regulation, (v) this Agreement is a legally
valid and binding obligation enforceable against it in accordance with its terms, (vi) there are no Bankruptcy
Proceedings pending or being contemplated by it or to its knowledge, threatened against it; (vii) there are no Legal
Proceedings that materially adversely affect its ability to perform this Agreement.
ARTICLE 3: OBLIGATIONS AND DELIVERIES
3.1 Seller’s and Customer’s Obligations. Seller shall sell and Customer shall purchase the Contract Quantity
of Energy as described in this Agreement. Customer shall pay Seller the Energy & Capacity Price (as described in
the Additional Exhibit A) as well as any other charges specified in the Energy Charge set forth on Exhibit A.
Notwithstanding, the Parties acknowledge and agree that Seller is not a "utility" within the meaning of Section 366
of the Bankruptcy Code (11 U.S.C. 366) and that upon filing of a bankruptcy petition by or against Customer,
Seller shall only have an obligation to continue selling to Customer if required by other provisions of this
Agreement, and only if Seller receives satisfactory assurance of Customer's creditworthiness and ability to
perform as otherwise provided in this Agreement.
3.2 Warranty. Seller warrants that (i) it has title to all Energy sold and delivered by it to Customer, free and
clear of all taxes, liens, claims, security interests, encumbrances and other defects of title and (ii) it has the right to sell
such Energy. SELLER EXPRESSLY DISCLAIMS AND NEGATES ANY OTHER REPRESENTATION OR
WARRANTY, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY
REPRESENTATION OR WARRANTY WITH RESPECT TO CONFORMITY TO MODELS OR SAMPLES,
MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE. This Section 3.2 shall survive
expiration or termination of this Agreement.
3.3 Contract Quantity. Unless otherwise stated in Exhibit A, Seller shall supply all of Customer’s Energy
requirements or usage at the Premises.
3.4 Deliveries. Seller shall deliver the Energy to Customer at the Delivery Point. Title to all supply
delivered by Seller hereunder shall pass from Seller to the Customer at the Delivery Point (or as referred to in Exhibit A).
3.5 Term.
(i)Following acceptance and successful enrollment, Customer agrees to purchase its full electricity
requirements from Seller for the period (a) beginning on the Customer’s last scheduled meter read
date during the planning year immediately preceding the Commencement Date on or around [June
1, 2026 (the “Commencement Date”) in the Program through (b) the Customer’s next scheduled
meter read date immediately following the [ Ten (10) ] year anniversary3 of the Commencement
Date (such period from clause (a) to clause (b) is the “Purchase Period”). The RAST defines the
terms and conditions that constitute acceptance and successful enrollment into the Program.
Customer acknowledges that for any service location (identified in Exhibit A or on Exhibit B) not
accepted and/or successfully enrolled within forty-five (45) days of the date of this Agreement,
Seller reserves the right to revise or rescind this offer. If, as a result of ERM’s sole negligence, the
enrollment with the Electric Utility is not successful, Seller will reimburse the Customer for any
positive difference between the Electric Charge in this Agreement and the actual cost incurred by
the Customer for the replacement electric supply for the time between the planned Commencement
Date and the actual Commencement Date.
(ii)At the expiration of the Purchase Period, this Agreement shall automatically terminate, and if no
other alternative energy supplier has been selected, then the Customer shall be returned to tariff
service provided by the Electric Utility in accordance with the RASR. Customer agrees to provide
Seller with at least 180 days prior written notice of its intent to be returned to tariff service provided
by the Electric Utility or to select an alternative energy supplier, as the case may be.
3.6 Metering. Metering or any other measurement equipment shall be as described in Exhibit A, and if not fully
described in Exhibit A, metering or measurement equipment shall be installed, maintained, serviced, tested and
measured by the applicable local distribution or Electric Utility, or its successor, in accordance with its tariff. Unless
otherwise stated in Exhibit A, Seller is not responsible for any costs of metering or measurement equipment, or the
installation, maintenance, service, testing or measurement thereof. Seller is not responsible or liable to Customer for
failure to delivery Energy if any required metering or measurement equipment is not in place.
3.7 Changed Energy Needs.
(i) If during the term of this Agreement, Customer’s monthly electricity usage increases or
decreases over 25% for six consecutive months due to expansion or contraction of the Premises,
Customer and Seller shall negotiate in good faith to determine the pricing for such added or reduced
quantities of Energy requirements.
(ii)If the Customer closes, abandons or demolishes the Premises and the Premises’ meter is taken
out of service, the Customer shall have no further obligation under this Agreement for the Premises
as identified in Exhibit B; provided, however, the Customer has provided Seller with at least 60
days prior written notice.
3 Term to be a minimum of ten years.
In the event Customer’s sells the Premises, the Customer will negotiate in good faith to have the Premises as identified
in Exhibit B transferred to such buyer as further described in Section 11.2.
ARTICLE 4: BILLING AND PAYMENT
4.1 Invoices. Customer will receive one bill from the Electric Utility, which will include all associated charges
identified in the Price section set forth on Exhibit A. If Energy Charge on the bill received from the Electric Utility
does not match the Energy Charge in this Agreement, Customer shall have the right to dispute such charge and request
a reasonably detailed explanation of the difference between Energy Charge on Electric Utility bill and the Energy
Charge in the Agreement. Seller will provide a response to the Customer within a commercially reasonable amount
of time with an explanation of the difference between Energy Charge on Electric Utility bill and the Energy Charge
in the Agreement. Customer agrees to pay all non-disputed amounts owed to Seller when due by remitting payment
to the Electric Utility, which in turn will remit associated payment to Seller. If the Electric Utility fails to perform its
billing responsibilities, Seller reserves the right to bill the Customer directly its monthly Energy Charges for service
rendered. Upon 60 days following nonpayment when due of any non-disputed amounts owed, Seller shall have the
right to terminate this Agreement without fault or liability, and the Customer shall be responsible for timely notifying
the Electric Utility that is desires to be returned to Full Service in accordance with the RASR.
4.2 Failure to Pay. In the event Customer fails to pay the full amount payable by Customer when due and absent
a legitimate dispute as to whether such amount is due, interest on the unpaid portion shall be charged from the date
due until the date of payment at a rate equal to the lower of (i) the Interest Rate, or (ii) the maximum applicable lawful
interest rate.
4.3 Invoice Errors and Disputes. If an error is discovered in any invoice, the error shall be rectified within ten
(10)business days after notice of the discovery of the error. If a dispute arises as to the amount payable in any invoice,
Customer shall pay when due the amount not in dispute and the disputing Party shall provide the other Party written
notice including a detailed description of the specific basis of the dispute. The Parties shall first attempt to resolve the
dispute through the representatives of the Parties with authority to settle disputes on an informal basis. Prior to the
conclusion of such informal attempts to resolve the dispute, or ten (10) business days, whichever is shorter, neither
Party shall seek resolution through the Electric Utility, or the MPSC. During this reconciliation, no late charges will
accrue.
ARTICLE 5: FINANCIAL RESPONSIBILITY
5.1 Initial Assurance of Performance. Prior to the start of any supply of Energy by Seller, Seller has the option
to require Customer to provide assurances of performance in a form satisfactory to Customer in order to secure
Customer’s performance. Assurances may, at the option of Customer, include prepayment, letter of credit, or guaranty
from a party determined by Seller in its sole discretion to be creditworthy (“Assurances”). Customer may be required
to provide new or additional Assurances in the future. If Seller does not initially require Assurances, that shall not
prevent Seller in any way of requiring Assurances at a later date.
5.2 Other Assurances of Performance. If during the term of this Agreement, Seller (i) in its sole good faith
opinion, determines that there has been a material adverse change in Customer’s credit status or financial condition
(for example, but not limited to, a credit/bond rating lower than “BBB-”), or Customer becomes more than ten (10)
days in arrears in paying its bills hereunder, then Seller may demand in writing Assurances from Customer.
Furthermore, if during the term of this Agreement, the calculated damages payable under Section 6.4 below exceed
five percent of the total revenue Seller is to obtain under this Agreement (the “Threshold Amount”), Seller may
demand Assurances for the amount that such calculated damages exceed the Threshold Amount. Any Assurances
received by Seller shall be returned once the calculated damages in Section 6.4 is less than the Threshold Amount.
5.3 Remedy for Failure to Provide Assurances. Should Seller not receive satisfactory Assurances within ten
(10) days of a written request sent to Customer, Seller shall have the right to immediately suspend performance without
further notice.
ARTICLE 6: DEFAULTS AND REMEDIES
6.1 Damages for Failure to Deliver or Receive. Each Party shall be liable for those damages or losses directly
arising from its breach of any delivery or receipt obligation. The remedy for breach shall be Customer’s actual loss on
the commercially reasonable purchase of replacement Energy made in good faith, or Seller’s actual loss on the
commercially reasonable resale of Energy made in good faith; provided, however, if no such replacement or resale is
made, then a market price most applicable to the Energy, to be mutually determined in a commercially reasonable
manner by the Parties, which may be based on quotations from at least two (2) leading dealers, brokers or industry
participants reasonably selected by the Parties.
6.2 Events of Default. A default shall occur with respect to a Party, as applicable if: (i) any representation or
warranty made by a Party herein shall prove to have been false or misleading in any material respect when made or
deemed to be repeated, (ii) failure by a Party to perform any covenant set forth in this Agreement which failure is not
cured within fifteen (15) Business Days after written notice thereof to the defaulting party, (iii) a Party shall be subject
to a Bankruptcy Proceeding, (iv) failure by Customer to make, when due, any payment required under this Agreement,
which failure is not remedied within ten (10) Business Days after written notice of such failure is given, (v) failure by
the Customer to provide Assurances pursuant to Article 5 of this Agreement, (vi) Customer enters into another
agreement to purchase Energy from another supplier that covers the term of this Agreement, (vii) Customer terminates
this Agreement early, or (viii) Customer sells, transfers, closes or otherwise abandons the Premises and any successor
to the Premises does not agree to be bound by the terms of this Agreement.
6.3 Remedies. If Seller terminates this Agreement due to a breach by Customer as described in this Article 6,
Seller may at its sole option, immediately discontinue supply of Energy to Customer or transfer Customer to any
applicable supplier of last resort (as may be defined by the applicable local electricity deregulation regulations in
effect). If Customer terminates this Agreement due to breach by Seller as described in this Article 6, Customer shall
have the right to cease its selection of Seller as its alternative energy supplier (“AES”) under the Program and select
another entity as its AES for the purchase of its electricity requirements upon written notice to Seller and in a manner
consistent with the terms and conditions of the Program, RAST, and the applicable rules and regulations of the MPSC.
These rights are in addition to any other rights allowed herein, including but not limited to the rights described in
Sections 6.4 and 6.5.
6.4 Calculation of Seller’s Damages. If Seller terminates this Agreement pursuant to a default by Customer
as described in Section 6.1, the Parties agree, that in addition to all amounts Customer owes Seller prior to the
termination, Seller’s damages shall be the reasonable expenses incurred by Seller in terminating this Agreement.
Seller shall use commercially reasonable efforts to mitigate damages.
6.5 Calculation of Customer’s Damages. If Customer terminates this Agreement pursuant to a default by Seller
as described in Section 6.1, the Parties agree, that in addition to all amounts Seller owes Customer prior to the
termination, Customer’s damages shall be the reasonable expenses incurred by Customer in terminating this
Agreement. Customer shall use reasonable efforts to mitigate damages.
6.6 Payment Of Damages. Damages pursuant to Sections 6.4 and 6.5 shall be paid the later of thirty (30) days
following termination or within ten (10) days of calculation of damages.
ARTICLE 7: TAXES
7.1 Taxes. Customer shall pay every valid tax that is imposed upon Customer.
7.2 Payment of Taxes. Each Party shall pay for taxes that each such Party is required by law to pay. In the
event Customer is exempt from some tax, Customer shall furnish the Seller or other appropriate party with the
necessary written documents demonstrating a valid exemption from payment of such tax.
ARTICLE 8: FORCE MAJEURE
8.1 Force Majeure. No failure or omission by either Party in the performance of any obligation under this
Agreement (except failure or delay by Customer to pay any amount when due) shall be considered a breach of contract,
nor create any liability for damages, if and to the extent such failure or omission shall arise from any cause or causes
beyond the control of such Party (collectively, “Force Majeure”), including but not limited to the failure of the
applicable distribution and transmission company to receive, deliver or otherwise perform, unless caused by a Party’s
failure to perform.
8.2 Force Majeure Procedures. A Party claiming excuse due to Force Majeure shall call or e-mail the other
Party as soon as practicably possible after the occurrence of the Force Majeure, and shall follow-up with written notice
as soon as reasonably possible thereafter. In no event shall Seller be obligated to purchase for delivery and sale Energy
from others in order to replace the Energy curtailed or cut off by reason of Force Majeure.
8.3 Limitations to Force Majeure. No Party shall be entitled to the benefit of the provisions of this Article 8,
(i)to the extent the failure to perform was caused by the sole or contributory negligence of the Party claiming excuse;
or (ii) to the extent the failure to perform was caused by the Party claiming excuse after failing to remedy the condition
and to resume performance with reasonable dispatch.
ARTICLE 9: LIMITATION OF REMEDIES, LIABILITY AND DAMAGES
9.1 Limitation of Liability. THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND DAMAGES
PROVIDED HEREIN SATISFY THE ESSENTIAL PURPOSES HEREOF. THE EXPRESS REMEDIES OR
MEASURE OF DAMAGES HEREIN SHALL BE THE SOLE AND EXCLUSIVE REMEDY. UNLESS
EXPRESSLY HEREIN PROVIDED, PARTIES LIABILITIES SHALL BE LIMITED TO DIRECT ACTUAL
DAMAGES ONLY. SUCH DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY
AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. UNLESS
EXPRESSLY PROVIDED, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL,
PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS
INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY
PROVISION OR OTHERWISE (EXCEPT TO THE EXTENT THAT AN INDEMNIFYING PARTY PURSUANT
TO THE PROVISIONS OF THIS AGREEMENT IS OBLIGATED TO INDEMNIFY AGAINST THIRD PARTY
CLAIMS). THIS ARTICLE 9 SHALL SURVIVE THE EXPIRATION OR TERMINATION OF THE
AGREEMENT AND ALL TRANSACTIONS.
9.2 No Duty or Liability to Non-Parties. Nothing in this Agreement shall be construed to create any duty,
standard of care or liability to any person not a Party to this Agreement.
ARTICLE 10: INDEMNITY
To the extent permitted by law, Customer and Seller (the “Indemnifying Party” as the case may be) agree to
indemnify, defend, and hold the other Party harmless (the “Indemnified Party” as the case may be) from and against
any and all claims, demands, liabilities, losses, costs and expenses including reasonable attorneys’ fees, and causes of
action asserted against each other by any person (including without limitation, the Parties and their employees, agents,
contractors, and subcontractors, and employees of such contractors and subcontractors) for personal injury or death,
loss or damage to property, or fines or penalties, to the extent arising out of the Indemnifying Party’s failure to perform
any of its obligations hereunder. Indemnifying Party shall also indemnify the Indemnified Party from Indemnifying
Party's sole negligence or willful misconduct, in the handling or use of the Energy, or that of Indemnifying Party's
employees, agents, contractors, or subcontractors or in any way arising out of the violations of any federal, state, or
local regulations by Indemnifying Party or its employees, agents, contractors or subcontractors. In the event that an
Indemnifying Party is obligated to indemnify and hold the Indemnified Party harmless, the amount owing to the
Indemnified Party shall be the amount of such Indemnified Party’s actual losses, net of any insurance or other
recovery.
ARTICLE 11: MISCELLANEOUS
11.1 Title and Risk of Loss. Title to the Energy shall pass from Seller to Customer at the Delivery Point. Seller
shall have responsibility for and assume any liability with respect to the Energy prior to its delivery to Customer at
the specified Delivery Point(s). Customer shall have responsibility for and assume any liability with respect to said
Energy at and after its delivery to Customer at the Delivery Point(s).
11.2 Successors and Assigns; Assignment. If Customer transfers or conveys legal title of the Premises to another
party, Customer shall use reasonable efforts to assign this Agreement to any assignee or successor to the Premises,
and Seller shall not unreasonably object to such assignment. Otherwise, Customer may not assign this Agreement to
another party without Seller’s consent, such consent not to be unreasonably withheld. Seller may not assign this
Agreement to another party without Customer’s consent, such consent not to be unreasonably withheld. Any
purported assignment without appropriate consents shall be null and void. Notwithstanding the foregoing, ERM may,
without the need for consent from the Customer (and without relieving itself from liability hereunder), transfer or
assign this Agreement to an affiliate , or to any person or entity succeeding to all or substantially all of the assets of
such Party by way of merger, reorganization or otherwise; provided, however, that no such assignment shall in any
way relieve assignor from liability for full performance under this Agreement and that any such assignee agrees to be
bound by this Agreement; provided further that any permitted assignee has credit status which, in the non-assigning
Party’s sole reasonable opinion, is at least as sound as that of the assignor.
11.3 Confidentiality. Seller and Customer agree to keep all terms and provisions of this Agreement confidential
and not to disclose any terms to a third party without the express written consent of the other Party, provided however
that each party make disclosures to its own agents, attorneys, auditors, accountants and shareholders as may be
reasonably necessary.
11.4 Forward Contract. This Agreement and the transactions hereunder will constitute “forward contracts”
within the meaning of the United States Bankruptcy Code.
11.5 Notices. All notices required in this Agreement shall be deemed to have been properly given when sent by
email, delivered personally, or sent by certified or registered mail with all postage fully prepaid, addressed to the
Parties at addresses set forth below. Notices sent by email shall be deemed to have been received upon the sending
Party’s receipt of confirmation of successful transmission. If the day on which or time at which such email is received
is not a Business Day or is after 5:00 p.m. (at the receiving Party’s place of business) on a Business Day, then such
email shall be deemed to have been received on the next following Business Day.
To Seller
With a copy to Attn: General Counsel, at the same address
To County of Oakland, for the Water Resources
Commission: Attn: Brian Bennett, P.E.
One Public Wo D rks riv Wa e, terfor MI d, 48 328
Phone: 24 8-858-0958
Fax:
11.6 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED
AND PERFORMED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
11.7 Entire Agreement. This Agreement constitutes the entire agreement between the Parties relating to the
subject matter contemplated by the Parties. No statement or agreements, oral or written, made prior to or at the signing
hereof, shall vary or modify the terms of this Agreement.
11.8 Severability. The provisions of this Agreement are severable, and if any portion of this Agreement is
prohibited, deemed legally invalid or unenforceable, the remainder of this Agreement shall survive and remain in full
force and effect.
11.9 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same instrument, binding on all Parties hereto.
Transmission by email of the signature page hereof will be conclusive evidence of the execution by such Party of this
Agreement.
11.10 No Third Party Beneficiaries. The provisions of this Agreement shall not impart rights enforceable by any
person or entity not a Party or not a permitted successor or assignee of a Party bound to this Agreement.
11.11 Amendment. No amendment to or modification of any terms and conditions of this Agreement shall be
effective or binding on either Party unless and until agreed to in writing and duly signed by both Parties.
11.12 Waiver. No waiver by either Party of any one or more defaults by the other in the performance of any of the
provisions of this Agreement shall be construed as a waiver of any other default or defaults whether of a like kind or
different nature. The right of either Party to require strict performance by the other of any and/or all obligations
imposed upon the other by this Agreement shall not in any way be affected by previous waivers, forbearance or course
of dealing.
11.13 Duty of Good Faith. Both Parties shall have a duty of good faith and fair dealing with regard to this
Agreement.
11.14 Authorization. Upon signing this Agreement, Customer authorizes Seller to become Customer’s retail
electric provider for the duration of the Agreement. Customer authorizes Seller to act as agent for the sole purpose to
effect any change to Seller, and Customer shall direct its current electric supplier to work with Seller to make this
change happen. Customer and Seller shall provide any information, execute any documents and take any other
reasonable actions necessary to make effectuate Seller as Customer’s supplier of Energy.
11.15 Conflicts with Local Deregulation or Retail Laws. Seller is providing Energy to Customer pursuant to
the Electric Utility’s Program. As such, Seller and Customer shall comply with any Laws enacted by the Electric
Utility, as applicable. Any RAST in effect shall supersede and control in the event of any express conflicts.
11.16 Headings. The headings used for the sections herein are for convenience and reference purposes only, and
shall be ignored in construing this Agreement.
11.17 Transmission Settlements and Services. In the event there is an increase or decrease in the amount of
Renewable Portfolio Standards (“RPS”) required under the Michigan Renewable Energy Laws, network integrated
transmission services (“NITS”) costs, or charges included in the MISO Transmission Settlement incurred and paid by
Seller during the term of this Agreement, the actual cost of such NITS, RPS, and/or MISO Transmission Settlement
charges shall be trued-up by Seller on an annual basis to reflect the actual cost incurred by Seller and passed on to
Customer. Accordingly, the Energy Charge may also be adjusted annually to reflect each of the passthrough charges
noted in this Section 11.17.
11.18 Emergencies, Outages. In the event of any outages, downed wires, or other emergency situation, Customer
should contact the Electric Utility at: Toll Free Number: 1-800-477-4747.
IN WITNESS WHEREOF, the Parties hereto have caused the Agreement to be duly executed as of
the Effective Date.
SELLER:
Name:
Title:
CUSTOMER:
County of Oakland, for the Water Resources
Commission
Name:
Title:
One Energy Plaza, Jackson, MI 49201 Phone: (517) 788-0493
EXHIBIT A
ADDITIONAL CONTRACT PROVISIONS
Customer Name: County of Oakland, for the Water Resources Commission
Parent Organization (if applicable): County of Oakland
Service Address / Location of Premises*: See Exhibit B
City: State: Zip Code:
Current Electric Utility: DTE Electric Company
Account Number(s) On Current Electric Utility Bill*: See Exhibit B
Customer Name Exactly As Shown On Current Electric Utility Bill*: See Exhibit B
Customer Meter #**: See Exhibit B
*Note: Requested Information Can Be Found On Customer’s Monthly Electric Utility Bill.
**If Customer requires multiple Accounts and Meter #s to be enrolled into the Program, refer to “Exhibit B” for
required Location information and pricing details.
Price
The Energy Charge for all energy used during the Purchase Period = ______ ($/MWh, based on metered volumes)
Seller agrees that the Energy Charge includes all energy and nonenergy electric supply costs required by MISO and
under the Michigan Renewable Energy Laws in effect as of the Effective Date of this Agreement, including the
following:
Energy
Capacity
75% Renewable Portfolio Standards
Ancillary Service Charges (as authorized by MISO Tariff and regulated by FERC)
Network Integrated Transmission Service costs
Transmission and Distribution Line losses
Congestion
Any increase or decrease to the ancillary service charges (authorized by MISO) subsequent to the execution of this
Agreement shall be directly passed through to the Customer by a corresponding increase or decrease in the Energy
Charge stated above. In the event of a change in law under the Michigan Renewable Energy Laws following the
Effective Date of this Agreement, the parties agree to work together and negotiate in good faith to determine the
change in pricing of the Energy Charge to maintain the economics under this Agreement.
The Energy Charge above does not include RASR charges (i.e. distribution service) or other charges the Electric
Utility may impose that is separate from the Energy & Capacity Price. ERM takes sole responsibility of and will pay
or reimburse Customer for any State Reliability Mechanism charged by the Electric Utility. Such RASR and other
charges are MPSC approved and will continue to be billed by the Electric Utility. Information regarding the rates,
terms and conditions of distribution services can be obtained by contacting your current Electric Utility.
EXHIBIT B Only Commercial & Industrial Electric Service Accounts Will Be Accepted List Electric Service Accounts to be enrolled into the Electric Choice Program for County of Oakland, for the Water Resources Commission
Line # Account # Meter # Customer/Company Name Service Address / Location (Street Address, City, State, Zip) 1 910000050773 10063102 Oakland County Socrra TS Public WRKS Novi Sewage 46351 WEST RD NOVI, MI 48377 2 910000051011 10098100 Oakland County Drain Commission 22410 W 8 MILE RD SOUTHFIELD, MI 48034 3 910000051359 2789635 Oakland County WRC Accounting 3FL 165 OAKBRIDGE DR ROCHESTER, MI 48306 4 910000051383 8632499 Oakland County WRC Accounting 3FL 225 LONESOME OAK DR ROCHESTER, MI 48306 5 910000051706 2992515 Oakland County WRC Accounting 3rd Floor Dept 41W 2935 HADDEN RD ROCHESTER, MI 48306 6 910000051748 7217355 Oakland County Drain Commission 4102 HARVEY LK RD HIGHLAND TWP, MI 48356 7 910000051805 7394031 Oakland County WRC Accounting 3FL 9096 BAVARIAN WAY CLARKSTON, MI 48348 8 910000051896 7394639 Oakland County WRC Accounting 3FL 20450 DEQUINDRE DETROIT, MI 48234 9 910000052019 8756773 Oakland County Drain Commission 28490 W 13 MILE RD FARMINGTON, MI 48334 10 910000052050 1997450 Oakland County WRC Accounting 3FL 32650 W 12 MILE RD FARMINGTON, MI 48334 11 910000052639 1999421 Oakland County Water & Sewer Accounting 2090 E OAKLEY PRK RD WALLED LAKE, MI 48390 12 910000052951 8760876 Oakland County 3401 KERN RD OAKLAND, MI 48363 13 910000053009 1997094 Oakland County WRC Accounting 3FL 30940 DECKER RD NOVI, MI 48377 14 910000053090 10069358 Oakland County WRC Accounting 3FL 1466 S COMMERCE RD WALLED LAKE, MI 48390‐2401 15 910000053108 1997040 Oakland County WRC Accounting 3FL Dept 41W 1950 DECKER RD WALLED LAKE, MI 48390
16 910000056085 9536931 Oakland County Drain Commission 7498 INKSTER RD W BLOOMFIELD, MI 48322 17 910000057323 10099067 Oakland County WRC Accounting 3FL 649 WELCH RD WALLED LAKE, MI 48390‐3813 18 910000072561 8757302 Oakland County Drain Commission 4639 S COMMERCE RD COMMERCE TWP, MI 48382‐4125 19 910000072579 1999758 Oakland County Water & Sewer Accounting 701 PERTHSHIRE CT HIGHLAND, MI 48357‐4742 20 910000074195 10099121 Oakland County George W. Kuhn Drainage Dist. 1400 AJAX DR MADISON HEIGHTS, MI 48071 21 910012410536 5512757 Oakland County Accts Pay Water & Sewer Bldg 41 W 1305 QUEENS DR BLDG HSE OXFORD, MI 48371 22 910012410700 10086322 Oakland County WRC Accounting 3FL 100 DUNLAP RD OXFORD, MI 48371 23 910012701082 7394765 Oakland County Drain Commissioneer‐Per: Paula #41W 2475 ELKRIDGE CIR HIGHLAND, MI 48356 24 910012716221 4940396 Oakland County Per: Paula #41W 4646 GALLAGHER RD ROCHESTER, MI 48306 25 910012716346 7867185 Oakland County Per: Paula #41W 8771 COOLEY LAKE RD WHITE LAKE, MI 48382 26 910012716775 7086030 Oakland County Per: Paula #41W 4860 OLD ORCHARD TRL ORCHARD, LAKE MI 48324 27 910012718268 2775330 Oakland County Per: Paula #41W 29142 STEPHENSON HWY MADISON HEIGHTS, MI 48071 28 910012719043 8126558 Oakland County Per: Paula #41W 4860 PONTIAC LAKE RD WATERFORD, MI 48328 29 910012719290 7868818 Oakland County Per: Paula #41W 4809 PINNACLE BLVD ROCHESTER, MI 48306 30 910012719514 8780341 Oakland County Per: Paula #41W 411 TIMBER RIDGE DR HIGHLAND, MI 48356 31 910012732145 7867696 Oakland County Per: Paula #41W 601 WATERSTONE DR S OXFORD, MI 48371 32 910012733739 4941368 Oakland County Per: Paula #41W 3151 COLLINS WELL OAKLAND, MI 48363 33 910012733853 4941369 Oakland County Per: Paula #41W 313 E PREDMORE RD OAKLAND, MI 48363 34 910013178587 4940520 Oakland County Accts Pay Water & Sewer Bldg 41 W 22430 W 8 MILE RD SOUTHFIELD, MI 48034
35 910013193446 2771650 Oakland County Accts Pay Water & Sewer Bldg 41 W 4984 N ROCHESTER RD ROCHESTER HILLS, MI 48306 36 910013193693 8299127 Oakland County Accts Pay Water & Sewer Bldg 41 W 830 SCOTT DR HIGHLAND, MI 48356 37 910013226287 7867285 Oakland County DPW 8250 VANDELL COMMERCE, MI 48382 38 910013226543 4937945 Oakland County DPW 23401 GLENCREEK FARMINGTON HILLS, MI 48336 39 910015085137 5513378 Oakland County Drain Comm 8210 GOLF LANE COMMERCE, MI 48382 40 910015361652 5571010 Oakland County WRC Accounting Dept 3 3650 SILVERBELL RD ROCHESTER, MI 48306 41 910015367394 2773351 Oakland County Drain ACACIA Park Drain 31835 EVERGREEN BEVERLY HILLS, MI 48025 42 910015367683 4940866 Oakland County 3rd FLR‐WRC Fiscal Services 470 TWIN LAKES DR OAKLAND, MI 48363 43 910018278267 5513523 Oakland County WRC Fiscal Services Accounting Dept 3 131 E MARKET ST OXFORD, MI 48371 44 910023590391 4937854 Oakland County Drain Commission Dept 41W 2203 WIXOM RD COMMERCE TWP, MI 48382 45 910025697962 7078089 Oakland County Water Resources Accounting Dept 3 39652 W 13 MILE RD NOVI, MI 48377