Explanation
This ordinance authorizes the Director of Public Utilities to renew a multi-year demand response services agreement (the “Agreement”) with NRG Curtailment Solutions, Inc. (NRGCS), a subsidiary of NRG Energy, Inc. Under the Agreement, NRGCS. will provide demand response services under the PJM emergency load response program for Division of Power retail customers.
RFQ013987 for the Department of Public Utilities’ (DPU) Demand Response Services project was advertised from October 25, 2019 through November 22, 2019 and the city received four (4) responses. All proposals were deemed responsive and were fully evaluated by the Evaluation Committee on December 2, 2019, with NRG winning the bid award.
The Agreement, authorized by Ordinance No. 0224-2020, covered the period from June 1, 2020 through May 31, 2023, and permitted two renewals of 12 months each at the sole discretion of DPU. This ordinance authorizes the first of these two renewal options.
Under the Agreement, DPU agreed to enroll in NRGCS PowerPay! Program(s) and authorized NRGCS 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.
Participating Division of Power retail electricity customers can receive performance payments from NRGCS if they choose to participate in the demand response program. No funding is required for these services.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications and renewals.
SUPPLIER:
NRG E...
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