Explanation
This ordinance authorizes the Director of Public Utilities to renew a multi-year demand response services agreement (the “Agreement”) with NRG Curtailment Solutions, Inc. (NRGCS), a subsidiary of NRG Energy, Inc. Under the Agreement, NRGCS. will provide demand response services under the PJM emergency load response program for Division of Power retail customers.
RFQ013987 for the Department of Public Utilities’ (DPU) Demand Response Services project was advertised from October 25, 2019 through November 22, 2019 and the city received four (4) responses. All proposals were deemed responsive and were fully evaluated by the Evaluation Committee on December 2, 2019, with NRG winning the bid award.
The Agreement, authorized by Ordinance No. 0224-2020, covered the period from June 1, 2020 through May 31, 2023, and permitted two renewals of 12 months each at the sole discretion of DPU. This ordinance authorizes the first of these two renewal options.
Under the Agreement, DPU agreed to enroll in NRGCS PowerPay! Program(s) and authorized NRGCS 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.
Participating Division of Power retail electricity customers can receive performance payments from NRGCS if they choose to participate in the demand response program. No funding is required for these services.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications and renewals.
SUPPLIER:
NRG Energy, Inc. | D365 Vendor #031428 | Federal EIN #41-1724239 | Expired 11/20/2021
The company does not hold MBE/FBE status.
NRG Energy, 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.
FISCAL IMPACT:
There are no fiscal transfers or expenditures associated with this ordinance.
Title
To authorize the Director of Public Utilities to renew a multi-year demand response services agreement with NRG Curtailment Solutions, Inc. for demand response services for the Division of Power's retail electricity customers.
Body
WHEREAS, RFQ013987 for the Department of Public Utilities’ Demand Response Services project was advertised from October 25, 2019 through November 22, 2019 and the city received four (4) responses, all of which were deemed responsive and fully evaluated by the Evaluation Committee on December 2, 2019; and
WHEREAS, the Department of Public Utilities elected to enter into a multi-year energy curtailment services agreement with NRG Curtailment Solutions, Inc; and
WHEREAS, the Agreement, authorized by Ordinance No. 0224-2020, provided a three year term beginning on June 1, 2020 and ending on May 31, 2023, with the option of two renewals of 12 months each, at the sole discretion of the Department of Public Utilities; and
WHEREAS, this ordinance authorizes the first of these two renewal options; 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, this ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications; 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 renew a demand response services agreement with NRG Curtailment Solutions, Inc. for implementation of the PJM load response program for Division of Power retail customers; 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 renew the multi-year demand response services agreement with NRG Curtailment Solutions, Inc., 4433 Genesee Street, Suite 401
Buffalo, New York 14225, for demand response services for the Department of Public Utilities' retail electricity customers.
SECTION 2. That this renewal is in accordance with the relevant provisions of Chapter 329 of City Code.
SECTION 3. That there is no cost associated with this project.
SECTION 4. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.