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 provides 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 requests authorization to exercise this option and extend the term of the Agreement for an additional 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 use through high-return Integrated Demand Response strategies.
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 initial term of the Agreement for the Department of Public Utilities participating facilities, expected revenue for the one year renewal term is estimate...
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