City of Columbus - File #: 0218-2011

• File #: 0218-2011
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 2/2/2011
• In control: Finance Committee
• On agenda: 2/14/2011
• Final action: 2/16/2011
• Title: To authorize the Director of Finance and Management to enter into a subscription agreement with KOREnergy, to allow the participation in the PJM demand response programs for the one or more City facilities; to waive the City Code provisions for competitive bidding; and to declare an emergency.

Date	Ver.	Action By	Action	Result
2/16/2011	1	CITY CLERK	Attest
2/15/2011	1	MAYOR	Signed
2/14/2011	1	Columbus City Council	Approved	Pass
2/14/2011	1	COUNCIL PRESIDENT	Signed
2/4/2011	1	Auditor Reviewer	Reviewed and Approved
2/4/2011	1	CITY AUDITOR	Reviewed and Approved
2/4/2011	1	Finance Drafter	Sent for Approval
2/4/2011	1	EBOCO Reviewer	Sent for Approval
2/4/2011	1	CITY ATTORNEY	Reviewed and Approved
2/4/2011	1	ODI DIRECTOR	Reviewed and Approved
2/4/2011	1	Finance Drafter	Sent to Clerk's Office for Council
2/3/2011	1	Finance Drafter	Sent for Approval
2/3/2011	1	Finance Reviewer	Reviewed and Approved
2/3/2011	1	Finance Reviewer	Reviewed and Approved
2/3/2011	1	FINANCE DIRECTOR	Reviewed and Approved
2/2/2011	1	Finance Reviewer	Reviewed and Approved
2/2/2011	1	Finance Reviewer	Reviewed and Approved

Explanation

BACKGROUND:

This legislation authorizes the Director of Finance and Management to enter into a subscription agreement with KOREnergy (KORE), a Curtailment Service Provider, for access to the Demand Response Programs offered by PJM Interconnection, Inc. (PJM) and for the Department of Finance and Management to participate in these PJM programs. KORE is a member PJM and as a Curtailment Service Provider is authorized to represent the City with PJM.

The Demand Response Program is managed by PJM, a federally regulated non-profit entity that manages the electric transmission grid in a thirteen-state territory, which includes 51 million people and 20 percent of the U.S. economy.

The Demand Response Program is a voluntary program where customers agree to reduce 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. KORE will pay the City a premium for temporarily curtailing a portion of the City's energy use through high-return Integrated Demand Response strategies.

In the event of record-high temperatures, mechanical failures at power plants or the transmission grid in our region various City buildings will either disconnect from the grid or will reduce power demand to a predetermined level. If a building were to disconnect this power would be offset by a switch over to a back up power generator.

The Demand Response Program helps the environment and helps reduce the rates utility customers pay during warm summer months. By recruiting eligible customers to voluntarily reduce usage, PJM is able to delay or defer the construction of new power plants. The program also allows PJM to avoid purchasing more expensive power from other regions of the country.

This program will allow the City to earn money...