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W A" E R E N E R G Y L I F E ZW& RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JANUARY 23, 2015 ITEM NO: 9 SUBJECT: GOODS AND SERVICES CONTRACT BETWEEN ICE ENERGY HOLDINGS, INC. AND THE CITY OF RIVERSIDE— ICE BEAR PROJECT ISSUE: The item for Board of Public Utilities consideration is the approval of the Goods and Services Contract ("Contract) with Ice Energy Holdings, Inc. ("Ice Energy") to implement a Peak Load Reduction ("PLR") program using Ice Bear thermal energy storage ("TES") for one year (2015) with four one-year optional extensions through 2019. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Goods and Services Contract between Ice Energy Holdings, Inc. and the City of Riverside to implement the PLR program for calendar year 2015 with four optional one year extensions through 2019; 2. Authorize the City Manager, or his designee, to execute the Contract under the terms and conditions in the Contract; 3. Authorize the City Manager, or his designee, to execute any future amendments or extensions to the Contract under terms and conditions substantially similar or superior to the Contract; 4. Authorize the City Manager, or his designee, to exercise the cancellation, extension and/or termination provisions contained in the Contract; 5. Authorize the City Manager, or his designee, to execute and administer the individual License Agreements with participating customers (including executing, terminating or modifying future License Agreements); and 6. Authorize the City Manager, or his designee, to execute any documents necessary to administer the Contract that are consistent with the policies established by the City Council. BACKGROUND: Assembly Bill (AB) 2514, signed into law on September 29, 2010, mandated that California publicly owned electric utilities consider establishing procurement targets for cost-effective energy storage technologies/devices by October 1, 2014. On September 5, 2014, and September 23, 2014, respectively, the RPU Board recommended and City Council approved, adoption of a zero megawatt energy storage procurement target as none of the viable applications of energy storage solutions that could benefit the City were cost-effective. Staff continued to investigate energy storage technologies. Currently, TES is the most cost-effective technology.