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Title:
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Agreement with Enerwise Technologies, LLC d/b/a CPower and Enroll in Arizona Public Service Peak Solutions Program (Ordinance S-47617)
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Title
Agreement with Enerwise Technologies, LLC d/b/a CPower and Enroll in Arizona Public Service Peak Solutions Program (Ordinance S-47617)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Enerwise Technologies, LLC d/b/a CPower and enroll in the Arizona Public Service Peak Solutions Program. Further request to authorize the City Treasurer to accept all funds related to this item. Estimated revenues are anticipated to be between $5,000 and $20,000 annually.
Report
Summary
The Arizona Public Service (APS) Peak Solutions Program compensates customers for reducing electrical load during demand response events, most commonly during peak hours as needed. CPower is contracted through APS to administer the program and provide compensation to customers enrolled in the APS Peak Solutions Program. The Water Services Department (WSD) seeks to enter into a five-year agreement, which will terminate May 31, 2026, with an option to renew.
Participating in the Program, in addition to the payment terms set forth in the Service Agreement, CPower (Provider) will pay to the City (Customer) $10.00 per kW/month of performance as defined in the Program Rules. Provider will also pay an energy payment, if applicable. Energy payments are earned based on the Curtailment Value, up to and not to exceed, Customer's Enrollment Value for each Event Hour. The energy payment will be based on the following:
Called events and tests;
A rate of $0.09/kWh; and
Average monthly performance must be over 70 percent of Enrollment Value.
Contract Term
The term of this agreement is five years and will terminate on May 31, 2026.
Financial Impact
There is no cost to the City to enter into this agreement. Based on the electrical load anticipated to be reduced, staff estimates this agreement may generate between $5,000 and $20,000 of revenue annually. WSD will receive compensation each December of the participating program year.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.