11-14-2016 BPU RPT 07 - Laserfiche WebLink

Home

W A I E R E N E R G Y I. l F F RIVERSIDE PUBLIC UTILITIES III& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: NOVEMBER 14, 2016 ITEM NO: 7 SUBJECT: FIRST AMENDMENT TO GRANT AGREEMENT FOR CUSTOM ENERGY TECHNOLOGY GRANT PROGRAM WITH PACIFIC ENERGY CORPORATION FOR THE DEVELOPMENT OF A DEMAND RESPONSE AND PEAK SHAVING ADVANCED ENERGY STORAGE SYSTEM, EXTENDING TERM TO JANUARY 31, 2017 ISSUE: Approve the First Amendment to Grant Agreement for Custom Energy Technology Grant Program with Pacific Energy Corporation for their proposal to develop a Demand Response and Peak Shaving Advanced Energy Storage System,extending the term to January 31, 2017. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the First Amendment to the Grant Agreement for Custom Energy Technology Grant Program with Pacific Energy Corporation, extending the term to January 31, 2017, and; 2. Authorize the City Manager, or his designee, to execute the First Amendment to the Grant Agreement for Custom Energy Technology Grant Program with Pacific Energy Corporation, including making minor and non - substantive changes. BACKGROUND: One of Riverside Public Utilities' (RPU) programs funded from the Public Benefits Funds is the Custom Energy Technology Grant (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 and development, and demonstration programs. Winning proposals selected address the changes that the advancement of technology has brought into the utility industry in the last five years. RPU looks 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. In November 2013, RPU commercial, electric customer, Pacific Energy Corporation (Pacific Energy), submitted a proposal to apply for grant funding through RPU's 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. The applicant's intention was to develop a Demand Response and Peak Shaving system to benefit both RPU and the end user through optimal management of peak energy loads. On January 23, 2015, the Board of Public Utilities approved the CETG for Pacific Energy. City Council approved it on February 10, 2015, and on February 17, 2015, the City of Riverside entered into an agreement with Pacific Energy to fund the development of a Demand Response and Peak Shaving Advanced Energy Storage System. The terms of the agreement granted Pacific Energy $70,000 paid in