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07-14-2009 CC RPT 49
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7/10/2009 8:42:33 AM
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7/10/2009 8:42:27 AM
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Public Utilities
General - Type
City Council Reports
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07-14-2009 CC RA AGENDA
(Superseded by)
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\City Council Agendas\2000-2009\2009
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úÔÉÄúÎÈÏÚÔÑðØÐÎËÜÏÙÈÐ <br />TO: HONORABLE MAYOR AND CITY COUNCILDATE: JULY 14, 2009 <br />FROM: PUBLIC UTILITIES ITEM NO: <br />WARDS: ALL <br />SUBJECTDEMAND RESPONSE PROGRAM <br />: <br />ISSUE <br />: <br />In response to a Federal Energy Regulatory Commission (FERC) ruling, Riverside Public Utilities <br />(RPU) is seeking approval to become the sole entity permitted to bid demand response on behalf of <br />its retail customers. <br />RECOMMENDATIONS <br />: <br />That the City Council: <br />1. Introduce and adopt an ordinanceamending Title 14 (Public Utilities) of the Riverside <br />Municipal Code by adding Chapter 14.32 to prohibit entities other than Riverside Public <br />Utilities (RPU) from aggregating Demand Response on behalf of retail customers in the City <br />of Riverside; and <br />2. Authorize the General Manager, or his designee, to establish further programs to meet <br />requirements of the Federal Energy Regulatory Commission (FERC) Rule (Order No. 719). <br />BOARD RECOMMENDATION <br />: <br />The Board of Public Utilities unanimously approved this item at its regularly scheduled meeting on <br />June 5, 2009. <br />BACKGROUND <br />: <br />In October 2008, FERC issued a new Rule (Order No. 719) that requires Regional Transmission <br />Organizations (RTOs) and Independent System Operators to allow retail customers—including the <br />retail customers of public power systems—to bid and sell their retail demand response into the <br />RTOs’ wholesale electricity markets. The Rule also permits RTOs to accept bids from third-party <br />Aggregators of Retail Customers (ARCs) that aggregate the demand response of individual retail <br />customers for purposes of participating in RTO markets. Riverside is a member of the California <br />Independent System Operator (Cal-ISO). <br />FERC’s Rule also allows public power systems to opt-out of many of the rule’s retail demand <br />response requirements. To do so, the governing body of the public power system must adopt a <br />
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