Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a multi-year Demand Response Services Agreement with Voltus, Inc. (the “Agreement”). Under the Agreement, Voltus, Inc. will provide demand response services under the PJM Demand Response program for Division of Power retail customers including Department of Public Utilities facilities. The Agreement covers the period from June 1, 2025 through May 31, 2028, with the option of two renewals of 12 months each, at the sole discretion of the Department of Public Utilities (DPU). If both renewals are exercised, the anticipated agreement would then end May 31, 2030.
Under the Agreement, DPU agrees to enroll in Voltus, Inc.’s PJM Demand Response Program(s) and authorizes Voltus, Inc.to be its exclusive demand response provider for all applicable demand response-related programs offered with PJM relating to energy, capacity, and ancillary services. The curtailment services, referred to as "demand responses services," are a planned reduction in electricity use during times of high demand that help 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.
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 Voltus, Inc. if they choose to participate in the demand response program. The Division of Power anticipates receiving a few hundred thousand dollars in revenue from this agreement.
RFQ028714 for the Department of Public Utilities’ (DPU) Demand Response Services project was advertised from September 11, 2024 through October 2, 2024 and the City received one proposal. That proposal was deemed responsive and was fully evaluated by the Evaluation Committee on October 10, 2024, with the Evaluation Committee agreeing to award the contract to Voltus, Inc.
2. SUPPLIER
Voltus, Inc.’s Contract Compliance Number is CC047907 and expires 1/25/2026.
The company does not hold MBE/WBE status.
Voltus, Inc. will need to register with the Ohio Secretary of State.
Voltus, Inc. is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
3. FISCAL IMPACT:
There are no fiscal transfers or expenditures associated with this ordinance.
4. EMERGENCY DESIGNATION
Emergency action is requested. It takes several months for the new supplier to increase staff, contact Division of Power customers, understand their power needs, educate customers on the new program, configure systems to produce the desired savings, and arrange for the power delivery. This contract must be in place by the end of this calendar year so there is enough time to transition to the new provider prior to the expiration of the existing contract in June 2025 so existing discounts and payments to the Division of Power and Division of Power customers are not interrupted.
Title
To authorize the Director of Public Utilities to enter into a multi-year demand response services agreement with Voltus, Inc., for demand response services for the Division of Power's retail electricity customers; and to declare an emergency. ($0.00)
Body
WHEREAS, RFQ028714 for the Department of Public Utilities’ (DPU) Demand Response Services project was advertised from October 25, 2019 through October 2, 2024; and
WHEREAS, the City received one proposal, which were deemed responsive and fully evaluated by the Evaluation Committee on October 10, 2024; and
WHEREAS, the Department of Public Utilities has elected to enter into a multi-year energy curtailment services agreement with Voltus, Inc., the company that submitted the sole proposal in response to the RFP; and
WHEREAS, the Agreement and the associated demand response services generate revenue for the participating customers and help support reliable operation of regional electric services; and
WHEREAS, it is also anticipated the Department of Public Utilities, Division of Power, will receive revenue from this agreement; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Power, to authorize the Director of Public Utilities to enter into a multi-year demand response services agreement with Voltus, Inc. for implementation of the PJM Demand Response program for Division of Power retail customers; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that it is immediately necessary to authorize the Director of Public Service to finalize this contract prior to the end of this calendar year so there is enough time to transition to the new provider (for the new supplier to increase staff, contact Division of Power customers, understand their power needs, educate customers on the new program, configure systems to produce the desired savings, and arrange for the power delivery)prior to the expiration of the existing contract in June 2025 so existing discounts and payments to the Division of Power and Division of Power customers are not interrupted, thereby preserving the public health, peace, property, welfare, and safety; 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 Voltus, Inc., 2443 Filmore Street, #380-3427, San Francisco, CA 94115, for demand response services for the Department of Public Utilities and for the Department of Public Utilities' electricity customers contingent upon Voltus, Inc. becoming registered to transact business within the State of Ohio as required by Ohio Revised Code Chapter 1703.
SECTION 2. That there are no fiscal transfers or expenditures associated with this ordinance.
SECTION 3. That for the reasons stated in the preamble hereto, which is 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 after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.