12-20-2013 BPU RPT 05 - Laserfiche WebLink

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W A T E R E N E R G Y L [ F E 7NT1 RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: December 20, 2013 ITEM NO: 5 SUBJECT: ENERGY MANAGEMENT SERVICE CONTRACT WITH ENERGYCONNECT,INC.FOR DEMAND MANAGEMENT OF SELECTED CITY WATER PRODUCTION FACILITIES SERVED BY SOUTHERN CALIFORNIA EDISON ISSUE: The item for Board of Public Utilities consideration is approval of the Clean Green California Demand Response Sales and Service Agreement with EnergyConnect, Inc. (ECI) for demand management of selected City water production facilities served by the Southern California Edison (SCE). RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the Clean Green California Demand Response Sales and Service Agreement with EnergyConnect, Inc.; 2. Authorize the City Manager, or his designee, to sign the Agreement; and 3. Authorize Riverside Public Utilities staff to manage the Agreement by adjusting the Nominated Capacity on a monthly basis and to add or delete selected sites from time to time as appropriate to optimize the program benefits while maintaining adequate water production at all times. BACKGROUND: As part of the Clean Green California Demand Response Program, energy aggregators provide demand response services to electric utilities and grid operators to reduce energy use during excessively high demand periods. If utilities or grid operators have a sudden increase in demand, these energy aggregators communicate with customers to reduce energy use and in return pay customers for participating in the program. In turn,these aggregators receive money from the utilities to manage and oversee the program. To date, over 40 California water utilities, including RPU, are participating in the program. RPU participates with its facilities within SCE's service area. Since 2010, RPU has been paid a total of$138,931 to participate. Currently, RPU has an agreement with EnerNoc which will expire on December 31, 2013. SCE has contracts with six service providers. Staff contacted all six service providers providing them energy and cost data on 24 SCE accounts, and requested proposals from them to participate in the demand response program. Each provider submitted a proposal based on RPU historical energy usage and its existing terms with SCE. Staff reviewed the proposals and ranked them based on flexibility and incentives; ECI submitted the most favorable proposal. Under the proposed agreement, events may only be called during non-holiday weekdays from 11:00 a.m.to 6:00 p.m.from May to Octoberwith one-hour notification and an event length may not-to-exceed five hours.The maximum number of event hours called is 180 hours/year. ECI will pay the City$60,000 per megawatt(MW) per year for stand by capacity and$0.12 per kilowatt(KW) for demand reduction evaluated based on the first two hours of each event. Capacity and demand reduction payments will be made to the City based on the City's participation under the program. No penalties will be accessed if the City fails to participate in any or all events. Riverside Public Utilities(RPU)owns and operates