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...
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