ADDENDUM NO. 1

Date:January 24, 2008

To: All Prospective Respondents

From:Marie A. Bishop, Colorado Springs Utilities

Subject:Addendum No.1

Project: Energy Trading Risk Management (ETRM) System

RFP-MB-59195 Mandatory Pre-Proposal Teleconference

Questions:

Q1: I know the RFP due date, but when can we send the Non-Disclosure Agreement in to Springs Utilities?

A: The executed NDA document should be sent to Springs Utilities ASAP to allow more time for you to prepare responses to the RFP. Please either email the signed NDA to: , or you can fax the signed NDA to the attention of Marie Bishop at Fax No. 719-668-2851, then please forward two executed original NDA documents to the address listed in the RFP. Upon receipt of the two NDA Springs Utilities will execute the NDA, email a copy of the IT Architecture Table and Interface Map documents out, and return one fully executed copy of the NDA back to the sender. Please be sure to include an email address in with your NDA so that Springs Utilities we can electronically send out the IT Architecture Table and Interface Map.

Q2: Is the current Springs Utilities system a home grown system?

A: Yes, it is. It is a spreadsheet based system.

Q3: Is Springs Utilities looking for an ERP (Enterprise Resource Planning) System?

A: At this time integration to a ERP System is not in the implementation plan, however, it may be an option for the future.

Q4: What ERP Systems does Springs Utilities currently utilize?

A: We currently use Lawson System Foundation (LSF) and Customer Care and Billing (CCnB) our LSF System. In the future we may look to integrating the new ETRM System with our LSF.

Q5: Does integration involve anything else other than providing application software as

mentioned?

A: No, that is it for 2008.

Q6: Is Springs Utilities looking for hardware and databases, etc.

A: No, we would like this system to fit in with existing our databases and hardware, with the exception of a hosted solution. Please note that if your proposed solution has some special hardware requirements other than what we currently utilize please be sure to note the hardware requirements in your proposal.

Q7: RFP Exhibit B Pricing calls out testing and installation services. Although, I didn’t see a place where you would like us to price out the license fees? Also, the RFP states you are looking for a fixed price project with milestones.

A: Section 2.1 in Exhibit B, Price, Cost, and Fees of the RFP contains an embedded Excel worksheet. When you open up the worksheet there are four tabs at the bottom of the spreadsheet to be populated with your proposed solutions pricing information:

B.1 Basic Software Pricing

B.2 Basic Hardware Pricing

B.3 Services Bid Units

B.4 Travel and Expense Detail

Please note this populated Excel Spreadsheet mustbe submitted in a separate sealed envelopes clearly marked “Cost Proposal”.

Q8: If Springs Utilities is not able to find a acceptable solution,from the proposalsreceived in response to this RFP,with 100% of its requirements met would you consider buying a solution from multi vendors.

A: If we are unable to select a solution from the proposals received under RFP-MB-59195, we will go back to the drawing board. Please note that not every single requirement listed in Exhibit A is mandatory in the new system; we are also trying to get a feel for what you are offering.

Q9: Is Springs Utilities also considering building an in-house solution?

A: No, we will not build in-house solution.

Q10: What kind of software is the middle office currently using?

A: A spreadsheet based system for modified value at risk and bill at risk specific to our municipal set up. The inputs for the bill at risk system would come from the new ETRM system.

Q11: So, the trade and price information from the ETRM system will feed into your own system and run calculations?

A: If the risk component of the system that we’re seeking is able to replace what we currently have in place that would be a plus.

Q12: Would you reject proposals outright based entirely on cost?

A. No. Springs Utilities' Procurement process requires that all responsive and responsible proposals received go through a two step evaluation process. First, each proposal will go through a weighted technical evaluation scoring process, and, once after the technical evaluations are complete the cost proposal will then be opened and evaluated.

Q13: Time frame – when will you make a decision on vendor selection?

A. We are targeting a late May to mid June of 2008 to make an award.

Q14: What SCADA system is Springs Utilities using?

A Springs Utilities uses Version 1.03 - 2003 ABB SCADA System which contains the OSI Soft’s PI software. The ETRM system is expected to integrate with the OSI Soft’s PI system.

This addendum is to be signed and a copy either emailed to: , or faxed to Colorado Springs Utilities Procurement and Contracts Representative: Marie Bishop, Fax # 719-668-2851. Also, please be sure to include a copy of this acknowledgement of receipt for this addendum in your proposal to the solicitation.

Name of Firm:

Signature of Individual: Date:

Name of Individual (printed):

Title:

Address:

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