Explanation
This legislation authorizes the Director of Public Utilities to enter into a multi-year Demand Response Services Agreement with EnerNOC, Inc. (the “Agreement”). Under the Agreement, EnerNOC, Inc. provides demand response services under the PJM emergency load response program for Division of Power retail customers including Department of Public Utilities facilities. The Agreement covers the period from June 1, 2017 through May 31, 2020.
Under the Agreement, EnerNOC is the sole curtailment service provider for the Division of Power’s municipal retail electricity customers, including Department of Public Utilities facilities. The curtailment services, referred to herein as "demand responses services," are a planned reduction in electricity use during times of high demand that helps maintain electric grid reliability by reducing the stress on the grid system. This demand response activity helps reduce wholesale electricity prices and reduce electricity usage to address environmental concerns. EnerNOC pays the City for temporarily curtailing a portion of the participating Department of Public Utilities facilities’ energy at critical times during the months of June through September.
The demand response services generate revenue for the Department of Public Utilities, and participating Division of Power retail electricity customers can similarly receive performance payments from EnerNOC if they choose to participate in the demand response program.
Based on the energy curtailment performance of the Department's water and wastewater facilities in 2015, estimated revenue for the Department from 2017 activities could be approximately $350,000.00 for the year. No funding is required for these services.
Contract Compliance No.: 87-0698303/ MAJ / Expires XX/XX/XXXX
FISCAL IMPACT: There are no fiscal transfers or expenditures anticipated at this time.
EMERGENCY JUSTIFICATION: The agreement with EnerNoc must be signed by April 15th in order to participate in the load response program for the period June 1, 2017 through May 31, 2020.
Title
To authorize the Director of Public Utilities to enter into a multi-year Demand Response Services Agreement with EnerNOC, Inc. for demand response services for the Division of Power's retail electricity customers, including Department of Public Utilities facilities, and to declare an emergency.
Body
WHEREAS, two (2) bids were submitted for DPU's Demand Response Services project and the responding proposals were opened and reviewed on October 21, 2016; and
WHEREAS, the Department of Public Utilities has determined it necessary to enter into a multi-year energy curtailment services agreement with EnerNoc, Inc.; and
WHEREAS, the Agreement and the associated demand response services will generate revenue for the Department of Public Utilities and help support reliable operation of regional electric services; and
WHEREAS, the Agreement provides for a three year term beginning on June 1, 2017 and ending on May 31, 2020; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director of Public Utilities to enter into a Demand Response Services Agreement with EnerNoc, Inc. in order to meet the registration deadline to participate in the PJM load response program, for the preservation of the public peace, health, property, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to enter into a multi-year Demand Response Services Agreement with EnerNOC, Inc. for demand response services for the Department of Public Utilities' retail electricity customers, including Department of Public Utilities facilities.
SECTION 2. That there is no cost associated with this project.
SECTION 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared an emergency measure and shall take effect and be enforced from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.