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 provided 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 exercised the option for an additional one year term in 2015 pursuant to ordinance 0380-2015 and requests authorization to exercise the option to extend the term of the Agreement for the second and final 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 at critical times during the months of June through September.
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 term of the Agreement for the Department of Public Ut...
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