Title
Agreement with Enerwise Technologies, LLC dba CPower and Enroll in Arizona Public Service Peak Solutions Program
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Enerwise Global Technologies, LLC dba CPower and enroll the Aviation Department into 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 $10,000 and $50,000 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. During the term of the agreement, the Aviation Department (AVN) will receive compensation for reducing the electrical load at specific sites during demand reduction events from June 1 through September 30 as follows:
- $10.00 per kilowatts (kW)/month of performance for Day of Program participation;
- $8.00 per kW/month of performance for Day Ahead Program participation; and
- $0.09/kWh based on Curtailment Value during events.
Under the agreement, AVN agrees to shed up to 850 kW of power if a demand reduction event is called. This will be accomplished by reducing the chilled water temperate prior to the start of the event to pre-cool the chilled water loop and gradually raise chilled water temperatures during the demand reduction event. Using this procedure, customer comfort will not be impacted.
Contract Term
The term of the agreement is one-year, with four one-year options to extend the term.
Financial Impact
There is no cost to the City to enter into the agreement. Based on the electrical load anticipated to be reduced, AVN estimates the agreement may generate between $10,000 to $50,000 annually. AVN will receive payment following the end of each APS Peak Solutions Program period.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.