Explanation
1. BACKGROUND:
A. Need. This legislation authorizes the Director of Public Utilities to enter into an energy curtailment services agreement with ENERNOC, Inc. for the Department of Public Utilities Water and Wastewater Facilities and Division of Power and Water (Power) retail consumers. The contract provides energy curtailment services that will generate a revenue stream for the department and potentially reduce electric bills for some Division of Power and Water (Power) retail customers. The agreement is intended to have annual contract modifications over the next 5 (five) years as per the contract language.
The curtailment services will be 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 will pay the City a premium for temporarily curtailing a portion of the waste water treatment facilities energy use through high-return Integrated Demand Response strategies.
The Department performed a trial curtailment service in 2011 and has determined that pilot run a success. Total amount of revenue gained during the trial period was $156,000.00. The Department has determined that these services cannot be performed by City personnel. The performance of this energy curtailment services agreement will generate revenue for the Department of Public Utilities and potentially reduce the electric bills for some Division of Power and Water (Power) retail customers. No community outreach or environmental factors are considered for this project.
The projected timeline will be a five (5) year agreement which can be renewed on annual basis upon mutual agreement and approval by the Columbus City Council. Adjustments to fees and scope to this contract will be made by Contract Modification based on annual revenue sharing percent increases agreed upon prior to contract execution. Based on the trial energy curtailment service earnings from 2011 for the departments water and wastewater facility, a revenue estimate would be approximately $300,000 per year. No funding is required for these services.
B. Procurement Information: The Division advertised for a RFP on the City of Columbus's Vendor Services website and in the City Bulletin in accordance with the provisions of Section 329.14 of Columbus City Codes. The Division of Sewerage and Drainage opened and reviewed the responding proposals on December 5th, 2011 from the following companies:
Name C.C. No. Expires City/State Status
ENERNOC, Inc. 87-0698303 12/05/13 Boston, MA MAJ
Comverge, Inc. 22-3543611 12/01/13 Norcross, GA MAJ
Viridity Energy, Inc. Not Active NA Philadelphia, PA MAJ
Energy Curtailment Specialist, Inc. 20-0462805 11/09/13 Buffalo, NY MAJ
Hess Corporation 13-4921002 Inactive Woodbridge, NJ MAJ
Five proposals were received on December 5th, 2011 for the DPU Water and Wastewater Facilities and DoPW energy curtailment services project. The evaluation committee determined that the Enernoc, Inc. submitted the best RFP proposal and recommended that ENERNOC be awarded the energy curtailment services agreement.
C. Contract Compliance No.: 87-0698303 | MAJ | Exp 12/05/13
D. Emergency Designation: An Emergency designation is requested at this time. The contract must be executed early to participate in the PJM Demand Response Program
2. FISCAL IMPACT: There are no fiscal transfers or expenditures anticipated at this time.
Title
To authorize the Director of Public Utilities to enter into a multi-year energy curtailment services agreement with ENERNOC, Inc. for the Department of Public Utilities' Water and Wastewater Facilities and the Division of Electricity's retail consumers, and to declare an emergency.
Body
WHEREAS, five (5) bids were submitted for DPU's Water and Wastewater Facilities and Division of Power and Water (Power) retail consumers energy curtailment services project and the responding proposals were opened and reviewed on December 5th, 2011; and
WHEREAS, the Department of Public Utilities, Division of Sewerage and Drainage engineering personnel have determined it necessary to enter into to a multi-year energy curtailment services agreement with ENERNOC Inc.; 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 Utilities to enter into an energy curtailment services agreement with ENERNOC Inc. for the Department's Water and Wastewater Facilities and DoPW retail consumers Energy Curtailment Services project, which is necessary to allow for the proper operation of the City's water and wastewater treatment facilities' systems, as well as, 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 an energy curtailment services agreement with ENERNOC, Inc. for the Department of Public Utilities' Water and Wastewater Facilities and the Divsion of Power and Water (Power) retail consumers with ENERNOC, Inc., 101 Federal Street, Suite 1100, Boston, MA 02110.
Section 2. There is no cost associated with this project.
Section 3. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this Ordinance.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.