Title
Authorization to Enter Into Agreement with Enel X North America, Inc. and Enroll in Salt River Project Business Demand Program (Ordinance S-46689)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Enel X North America, Inc., and enroll in the Salt River Project (SRP) Business Demand 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 SRP Business Demand Program compensates customers for reducing electrical load during demand response events, most commonly during peak hours as needed. Enel Ex North America, Inc. is contracted through SRP to administer the program and provide compensation to customers enrolled in the SRP Business Demand Program. During the course of this agreement, participating departments will receive compensation for reducing the electrical load at specific sites during a demand response event at $40 per kW. At contract signing, only accounts from the Water Services Department will be included, however, it is anticipated that accounts from other departments will be added in the future.
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 for the Water Services Department. Departments will receive compensation each month of the participating program year.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters, the Water Services Department, and the Office of Sustainability.