01-23-15 BPU RPT 11 - Laserfiche WebLink

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RINTE i.SIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES GATE: JANUARY 23, 2015 ITEM NQ: 11 SUBJECT; PACIFIC ENERGY'S PROPOSAL FOR THE RIVERSIDE PUBLIC UTILITIES' CUSTOM ENERGY TECHNOLOGY GRANT ISSUE: That the Board of Public Utilities consider approving a Custom Energy Technology Grant (CETG) in the amount of $70,000 to Riverside Public Utilities' commercial customer, Pacific Energy, to fund the development of a Demand Response and Peak Shaving Advanced Energy Storage System. RECOMMENDATION: That the Board of Public Utilities approve and recommend that the City Council approve a CETG to Pacific Energy in the amount of $70,000 to be paid in four installments with one payment being funded in Fiscal Year 2014-15 and three payments funded in Fiscal Year 2015-16, in accordance with the Milestone Schedule attached, for the development of a Demand Response and Peak Shaving Advanced Energy Storage System. BACKGROUND: One of Riverside Public Utilities' (RPU) programs funded from the Public Benefits Funds is the CETG program. The program was created to provide RPU business electric customers with the opportunity to request funding for the advancement of renewable energy resource technology projects, research, development and demonstration programs. Winning proposals selected should address the changes that the advancement of technology has brought into the utility industry in the last five years. RPU is looking to continue its partnerships to explore ways to utilize technologies available today to make cleaner energy more reliable. Grants are awarded for energy-efficiency projects that are unique to a business or manufacturing process that is not covered under one of RPU's existing rebate or incentive programs. Research and development projects are also eligible under this program, The use of the grant funds must comply with the relevant portions of California Public Utilities Code Section 385 related to the use of Public Benefits Funds, Section 385(a)(3) provides that Public Benefits Funds may be used for "Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets." The amount of grant funding awarded is up to 75% of the project cost with a maximum of $100,000 (whichever is less) per project. There is a 25% matching fund requirement associated with this program. Pacific Energy will be contributing more than $120,000 dollars of equipment, staff time and research outside of the CTEG grant funding, In November of 2013, RPU customer Pacific Energy submitted a proposal, by Chief Executive Officer Philip Schaefer, to apply for grant funding through our CETG program. The funds would help support the design, engineering and construction of a 100 kilowatt-hour peak shaving, advanced energy storage system to be integrated into an existing commercial building utilizing lithium ion batteries, advanced controls and measurement equipment. All system controls, monitoring and software for the project will be managed and operated by Pacific Energy. The utility grant review team, which consists of engineers and other staff members, was assigned to review CETG proposals, analyze the contents, make