Explanation
This legislation authorizes the Director of Public Utilities to extend an existing Demand Response Sales and Services Agreement with EnerNOC, Inc. (the “Agreement”) for one additional year. 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 provided for an initial term ending on May 31, 2015, with an opportunity for two additional one-year terms if the Agreement is renewed at the city’s option. The Department of Public Utilities exercised the option for an additional one year term in 2015 pursuant to ordinance 0380-2015 and requests authorization to exercise the option to extend the term of the Agreement for the second and final one year renewal term.
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 demand response earnings received thus far during the term of the Agreement for the Department of Public Utilities participating facilities, expected revenue for the one year renewal term is estimated to be $180,000.00 per year. No funding is required for these services.
Contract Compliance No.: 87-0698303/ MAJ / Expires 2/6/2017
Emergency Action: An emergency designation is requested at this time. The city must exercise its option to renew the Agreement as soon as possible in order to meet the registration deadline to participate in the PJM emergency load response program.
FISCAL IMPACT: There are no fiscal transfers or expenditures anticipated at this time.
Title
To authorize the Director of Public Utilities to extend the Demand Response Sales and 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, the Department of Public Utilities entered into a Demand Response Sales and Services Agreement in 2012 with EnerNOC, Inc. pursuant to ordinance 0246-2012, passed February 27, 2012, for demand response services for Division of Power retail consumers, including Department of Public Utilities facilities; and
WHEREAS, the Agreement and the associated demand response services generate revenue for the Department of Public Utilities and help support reliable operation of regional electric services; and
WHEREAS, the Agreement provided for an initial term ending on May 31, 2015 with the option to extend for two additional one-year terms; and
WHEREAS, the Department of Public Utilities exercised the option for an additional one year term in 2015 pursuant to ordinance 0380-2015 and requests authorization to exercise the option to extend the term of the Agreement for the second and final one year renewal term; 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 extend the 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 extend the Demand Response Sales and Services Agreement with EnerNOC, Inc. for one year 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 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 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.