Explanation
BACKGROUND: The Federal Energy Regulatory Commission Order No. 719 requires electric utility Regional Transmission Organizations to accept bids into their markets for demand response of retail customers that are aggregated by Aggregators of Retail Customers unless the laws and regulation of the relevant electric retail regulatory authority expressly prohibit a retail customer from participation except through their municipal utility. The Council of the City of Columbus has determined that it is in the best interest of the City to enact such legislation in order to ensure that it retains control over its demand response program, thereby ensuring its effectiveness.
FISCAL IMPACT: There is no expenditure related to this ordinance.
Title
To allow only the City of Columbus to aggregate demand response of retail customers in accordance with Federal Energy Regulatory Commission Order No. 719; and to declare an emergency.
Body
WHEREAS, the City of Columbus owns and operates an electric utility system for the sale of electric power and associated energy for the benefit of its citizens and taxpayers; and
WHEREAS, On October 28, 2008 the Federal Energy Regulatory Commission ("FERC" or "Commission") issued Order No. 719, 125 FERC ¶ 61,071, 73 Fed. Reg. 64,099 ("Order 719"); and
WHEREAS, Order 719, 18 C.F.R. § 35.28(g)(1)(iii) provides: "Each Commission-approved independent system operator and regional transmission organization must permit a qualified aggregator of retail customers to bid demand response on behalf of retail customers directly into the Commission-approved independent system operator's or regional transmission organization's organized markets, unless the laws and regulations of the relevant electric retail regulatory authority expressly do not permit a retail customer to participate."; and
WHEREAS, Order No. 719, 18 C.F.R. § 35.28(g)(1)(i)(A) provides: "Every Commission-approved independent system operator or regional transmission organization that operates organized markets based on competitive bidding for energy imbalance, spinning reserves, supplemental reserves, reactive power and voltage control, or regulation and frequency response ancillary services (or its functional equivalent in the Commission-approved independent system operator's or regional transmission organization's tariff) must accept bids from demand response resources in these markets for that product on a basis comparable to any other resources, if the demand response resource meets the necessary technical requirements under the tariff, and submits a bid under the Commission-approved independent system operator's or regional transmission organization's bidding rules at or below the market-clearing price, unless not permitted by the laws or regulations of the relevant electric retail regulatory authority."; and
WHEREAS, the Council of the City of Columbus has determined that it would be harmful to its demand response program, the collective interests of its electric utility system, and its retail customers, to permit any entity other than the City of Columbus to aggregate demand response on behalf of its retail customers; and
WHEREAS, an emergency exists in the daily operation of the City of Columbus in that it is immediately necessary to enact this legislation before bids are accepted for aggregate retail load by independent system operators or regional transmission organizations, for the preservation of public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Council of the City of Columbus, Ohio, as the retail electric regulatory authority for the City of Columbus and its retail electric consumers, determines it to be desirable that the aggregation of demand response on behalf of its retail customers to be bid directly into the organized electric and ancillary services markets administered by the regional transmission organization that includes the City of Columbus (or any successor independent system operator or regional transmission organization) be performed by the City of Columbus or its authorized designee.
Section 2. That the City of Columbus or its authorized designee is the sole entity permitted to aggregate retail customers' demand response and bid demand response on behalf of retail customers of the electric utility of the City of Columbus directly into any Commission-approved independent system operator's or regional transmission organization's organized electric markets.
Section 3. That retail customers of the of the City of Columbus' electric system desiring to bid their demand response into a Commission-approved independent system operator's or regional transmission organization's organized electric markets may do so only by participating in the program established by the City of Columbus or its authorized designee.
Section 4. That the City of Columbus or its authorized designee is the sole entity permitted to bid demand response on behalf of retail customers of the City of Columbus directly into any Commission-approved independent system operator's or regional transmission organization's organized markets for energy imbalance, spinning reserves, supplemental reserves, reactive power and voltage control, or regulation and frequency response ancillary services (or its functional equivalent in the Commission-approved independent system operator's or regional transmission organization's tariff).
Section 5. That retail customers of the City of Columbus' electric system desiring to bid their demand response into a Commission-approved independent system operator's or regional transmission organization's organized markets for energy imbalance, spinning reserves, supplemental reserves, reactive power and voltage control, or regulation and frequency response ancillary services (or its functional equivalent in the Commission-approved independent system operator's or regional transmission organization's tariff) may do so only by participating in the program established by the City of Columbus or its authorized designee.
Section 6. That the Director of Public Utilities is authorized to adopt any necessary regulations to implement this ordinance.
Section 7. That for the reasons stated in the preamble hereto which are hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and immediately after its passage and signature by the Mayor, or within 10 days thereafter if the Mayor neither signs nor vetoes the same.