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,...
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