Explanation
.BACKGROUND:
A. Need. This legislation authorizes the Director of Public Utilities to enter into a subscription agreement with EnergyConnect Incorporated (ECI), a Curtailment Service Provider, for access to the Demand Response Programs offered by PJM and for Department Of Public Utilities Facilities to participate in these PJM programs. ECI is a member of PJM Interconnection, Inc. ("PJM") and as a Curtailment Service Provider is authorized to represent the City with PJM. PJM Interconnection manages the high-voltage electric grid and the wholesale electricity market that serves 13 states and the District of Colombia. The Demand Response Programs is a planned reduction in electricity use during times of high demand that helps maintain grid reliability by reducing the stress on the electrical grid system. PJM encourages demand response activity in the PJM grid to help reduce wholesale electricity prices and reduce electricity usage to address environmental concerns. ECI will pay the City a premium for temporarily curtailing a portion of the WWTFs energy use through high-return Integrated Demand Response strategies.
The Department Of Public Utilities facilities, and one in particular the Division of Sewerage and Drainage Wastewater Treatment Facilities (WWTF) is seeking to participate in energy curtailment through one of ECI's three demand response programs. ECI's GridConnect software is an Integrated Demand Response technology platform designed to take the complexity out of Demand Response participation. The City will have access to a single, web-based portal for easy access to ECI's EventConnect demand response program. The EventConnect program will allow the City to earn money for being on standby or for participating in event calls to temporarily reduce a portion of the electrical load in response to grid- or utility-initiated curtailment events. The EventConnect program will call on the City to particpate in energy curtailment events during the months of June through September, from zero to ten event requests during that time frame are possible, and only during the hours of noon to 8 pm. If no events are called the City will earn money for being willing to stand by and participation in a one hour test to be scheduled in the month of June, 2011
For participation in the EventConnect program, for each year of the program which runs from June to May, ECI shall make the first payment to the City, equal to 3/12's of the total annual earnings at the end of October, for the three months June to August and then monthly payments of 1/12 of the total annual earnings in arrears for the remaining nine months.
If adverse weather conditions, or other events prohibit the Department Of Public Utilities facilities, or WWTFs from participating in the programs, no cost or penalty will be burdened by the City. If the WWTFs obtain the pre-planned energy response curtailment target, in Megawatts, then revenue will be earned by the City at the rate of $34,233 per MW. If the WWTFs reach a fraction of the total curtailment target then the payment will be prorated. The curtailment target is a combined 9 MW between the two WWTPs.
B. Supplier: EnergyConnect, Inc. | CCCN-203534273 | (MAJ) | Expiration Date: 01/03/2013
C. Emergency Designation: Emergency designation is being requested so that the March 1, 2011 deadline to enter into the program can be met
FISCAL IMPACT: No expenditure is necessary. The Department of Public Utilities estimates $300,000.00 in revenue per year.
Title
To authorize the Director of Public Utilities to enter into a subscription agreement with EnergyConnect Incorporated, to allow the participation in the PJM/ECI demand response programs for the Department of Public Utilities facilities, the Division of Sewerage and Drainage, to waive the provisions of competitive bidding and to declare an emergency.
Body
WHEREAS, the Department Of Public Utilities facilities, the Division of Sewerage and Drainage is embarking to participate in demand response energy curtailment programs to enhance the electrical grid capacity during high peak demand and to help reduce wholesale electricity prices and reduce electricity usage to address environmental concerns, and to provide an opportunity to secure a revenue source for the City; and
WHEREAS, the Division of Sewerage and Drainage engineering personnel have determined it necessary to enter into a subscription agreement with EnergyConnect, Inc, in order to allow the WWTFs to participate in the available demand response programs; and
WHEREAS, EnergyConnect, Inc is not a sole source provider of this type of service; however, the Department of Public Utilities would like to enter into a one (1) year agreement with ECI to assess the viability of this program. If the program is beneficial financially to the the Department of Public Utilities an RFP could be developed for competitive bidding in late 2011 early 2012; and
WHEREAS, the revenue for this demand response energy curtailment participation was negotiated by City representatives and the EnergyConnect, Inc personnel; and
WHEREAS, the Department of Public Utilities estimates collecting $300,000.00 per year in revenue by participating in the program, and
WHEREAS, this ordinance is being submitted waiving the requirements of competitive bidding of Columbus City Code Section 329; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, in that it is immediately necessary to execute a subscription agreement with Energy Connect Inc to allow the Department of Public Utilities to participate in the program consistent with the participant contract submittal deadline of March 1, 2011; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities be, and hereby is, authorized to enter into a subscription agreement with EnergyConnect, Inc, 901 Campisi Way, Suite 260, Campbell, CA 95008, and to allow for the participation in the available PJM/ECI Demand Response Programs by the Department of Public Utilities, Division of Sewerage and Drainage, Southerly and Jackson Pike Wastewater Treatment Plants in accordance with the terms and conditions as shown in the agreement on file in the office of the Division of Sewerage and Drainage.
Section 2. That this Council finds it in the best interest of the City of Columbus to waive the provisions of competitive bidding with Columbus City Code Section 329.
Section 3. That this Council authorizes participation in the available PJM Demand Response Programs by any facilities under the direction of the Director of Public Utilities.
Section 4. That for the reasons stated in the preamble hereto, where is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure, which shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.