Explanation
This legislation authorizes the Director of Public Utilities to enter into a multi-year Demand Response Services Agreement with EnerNOC, Inc. (the “Agreement”). 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 covers the period from June 1, 2017 through May 31, 2020.
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 energy curtailment performance of the Department's water and wastewater facilities in 2015, estimated revenue for the Department from 2017 activities could be approximately $350,000.00 for the year. No funding is required for these services.
Contract Compliance No.: 87-0698303/ MAJ / Expires XX/XX/XXXX
FISCAL IMPACT: There are no fiscal transfers or expenditures anticipated at this time.
EMERGENCY JUSTIFICATION: The agreement with EnerNoc must be signed by April 15th in order to participate i...
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