Title
Authorization to Enter into Agreement with Enel X North America, Inc. and Enroll in the Salt River Project Business Demand Program (Ordinance S-48701)
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 Business Demand Program. Further request to authorize the City Treasurer to accept all funds related to this item. There is no financial obligation to the City of Phoenix.
Report
Summary
The Salt River Project (SRP) Business Demand Program compensates customers for reducing electrical load during demand response events, most commonly during peak hours as needed. Enel X North America, Inc. is contracted through SRP to administer the program and provide compensation to enrolled customers. During the course of this agreement, participating departments will receive compensation of $60 per kW for reducing electrical load at specific sites during a demand response event. 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 five years.
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. Once enrolled, 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.