Title
Authorization to Enter Into Agreement with Itron, Inc. and Enroll in Arizona Public Service Peak Solutions Program (Ordinance S-46636)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Itron, Inc., and enroll in the Arizona Public Service (APS) Peak Solutions program. Further request for the City Treasurer to accept all funds related to this item. There is no financial obligation to the City of Phoenix.
Report
Summary
The APS Peak Solutions Program compensates customers for reducing electrical load during demand response events, most commonly during peak hours as needed. Itron, Inc. 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 one-year agreement, which has a renewal option for one additional year. During the course of this agreement, WSD will receive compensation for reducing the electrical load at specific sites during a demand response event as follows:
- June through September: $4.60 per kW times the lesser of the Committed Load Reduction or last Demonstrated Load Reduction; and
- July through August: $11.15 per kW times the lesser of the Committed Load Reduction or last Demonstrated Load Reduction.
Additional Energy Payment Bonuses
$0.13 per kWh paid for up to 100 percent of Committed Load Reduction
Contract Term
The term of this agreement is for one year, with a one-year option for renewal.
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 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.