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12-06-2013 BPU RPT 07
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12-06-2013 BPU AGENDA
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WATER ENf: <br /> RIVERSIDE PUBLIC UTILITIES <br /> Board Memorandum <br /> PUBLIC UTILITIES <br /> BOARD OF PUBLIC UTILITIES DATE: December 6, 2013 <br /> ITEM NO: 7 <br /> SUBJECT: ENERGY MANAGEMENT SERVICE CONTRACT WITH ENERGYCONNECT,INC.FOR <br /> DEMAND MANAGEMENT OF SELECTED CITY WATER PRODUCTION FACILITIES <br /> SERVED BY SOUTHERN CALIFORNIA EDISON <br /> ISSUE: <br /> The item for Board of Public Utilities consideration is approval of the Clean Green California Demand <br /> Response Sales and Service Agreement with EnergyConnect, Inc. (ECI) for demand management of <br /> selected City water production facilities served by the Southern California Edison (SCE). <br /> RECOMMENDATIONS: <br /> That the Board of Public Utilities: <br /> 1. Approve the Clean Green California Demand Response Sales and Service Agreement with <br /> EnergyConnect, Inc.; <br /> 2. Authorize the City Manager, or his designee, to sign the Agreement; and <br /> 3. Authorize Riverside Public Utilities staff to manage the Agreement by adjusting the Nominated <br /> Capacity on a monthly basis and to add or delete selected sites from time to time as appropriate to <br /> optimize the program benefits while maintaining adequate water production at all times. <br /> BACKGROUND: <br /> As part of the Clean Green California Demand Response Program, energy aggregators provide demand <br /> response services to electric utilities and grid operators to reduce energy use during excessively high demand <br /> periods. If utilities or grid operators have a sudden increase in demand, these energy aggregators <br /> communicate with customers to reduce energy use and in return pay customers for participating in the <br /> program. In turn,these aggregators receive money from the utilities to manage and oversee the program. To <br /> date,over 40 California water utilities, including RPU, are participating in the program. RPU participates with <br /> its facilities within SCE's service area. Since 2010, RPU has been paid a total of$138,931 to participate. <br /> Currently, RPU has an agreement with EnerNoc which will expire on December 31, 2013. <br /> SCE has contracts with six service providers. Staff contacted all six service providers providing them energy <br /> and cost data on 24 SCE accounts, and requested proposals from them to participate in the demand <br /> response program. Each provider submitted a proposal based on RPU historical energy usage and its <br /> existing terms with SCE. Staff reviewed the proposals and ranked them based on flexibility and incentives; <br /> ECI submitted the most favorable proposal. Under the proposed agreement, events may only be called <br /> during non-holiday weekdays from 11:00 a.m.to 6:00 p.m.from May to Octoberwith one-hour notification and <br /> an event length may not-to-exceed five hours.The maximum number of event hours called is 30 hours/year. <br /> ECI will pay the City$60,000 per megawatt(MW) per year for stand by capacity and$0.15 per kilowatt(KW) <br /> for demand reduction evaluated based on the first two hours of each event. Capacity and demand reduction <br /> payments will be made to the City based on the City's participation under the program. No penalties will be <br /> accessed if the City fails to participate in any or all events. Riverside Public Utilities(RPU)owns and operates <br />
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