HomeMy WebLinkAboutAgenda Report - March 21, 2001 E-12AGENDA TITLE: Adopt resolution authorizing the City Manager to sign a contract between the City of Lodi and
Planergy International, to initiate the City of Lodi Electric Utility Summer 2001 ISO — Industrial
Customer Load Curtailment Program
MEETING DATE: March 21, 2001
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve the City of Lodi Electric Utility Summer 2001
ISO Industrial Customer Load Curtailment Program, and authorize the City
Manager to sign a contract between the City of Lodi and Planergy
International to implement and manage the project.
BACKGROUND INFORMATION: The City of Lodi Electric Utility is proposing to participate in the Summer 2001
Load Curtailment Program, as developed by the California Independent
System Operator (Cal -ISO). The Cal -ISO (which is responsible for
maintaining the integrity of the statewide power grid) program will provide incentive dollars to large commercial and
industrial customers that curtail energy usage, when called upon to do so, between June 1, 2001 and September 30,
2001. The Cal -ISO is coordinating their program through participating electric utility providers in central and northern
California.
The Cal -ISO is anticipating significant energy shortages around the state this summer, and has thus created the
Summer 2001 Load Curtailment Program to help reduce the potential for rolling blackouts. Although the City of Lodi
has sufficient resources to meet the electricity needs of local customers this summer, energy shortages statewide
could impact the overall energy grid or delivery system of California.
In order to effectively manage the proposed summer curtailment program, the City of Lodi Electric Utility is
recommending that Planergy International (formerly Energy Masters International, and the City of Lodi's chosen
energy services company) be selected to administer, implement and provide the daily coordination to ensure program
success. Planergy International currently is providing load curtailment management services in several other states
across the country.
FUNDING: Not applicable 45�& //� d�K
Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lechner, Manager, Customer Programs
ANWRU Ist
C: City Attorney
APPROVED'
H. Di on Flynn - Ci Manager
RESOLUTION NO. 2001-68
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE CONTRACT BETWEEN
THE CITY OF LODI AND PLANERGY INTERNATIONAL,
TO INITIATE THE CITY OF LODI ELECTRIC UTILITY
SUMMER 2001 ISO — INDUSTRIAL CUSTOMER
LOAD CURTAILMENT PROGRAM
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WHEREAS, the State has mandated that beginning January 1, 1998, the City of Lodi is
obligated to fund various programs through a Public Benefits Charge (PBC) based on a
historical electric revenue requirement; and
WHEREAS, the requirement amounts to approximately $1M per year that must be
dedicated to qualifying programs such as energy efficiency. A further stipulation is that these
efforts must be done on the customer's side of the meter in order to qualify; and
WHEREAS, the City of Lodi Electric Utility is proposing to participate in the Summer
2001 Load Curtailment Program, as developed by the California Independent System Operator
(Cal -ISO); and
WHEREAS, the Cal -ISO is responsible for maintaining the integrity of the statewide
power grid, and the Cal -ISO program will provide incentive dollars to large commercial and
industrial customers that curtail energy usage, when called upon to do so, between June 1,
2001 and September 30, 2001. The Cal -ISO is coordinating their program through
participating electric utility providers in central and northern California; and
WHEREAS, the Cal -ISO is anticipating significant energy shortages around the state
this summer, and has created the "Summer 2001 Load Curtailment Program" to help reduce
the potential for rolling blackouts. Energy shortages statewide could impact the overall energy
grid or delivery system of California; and
WHEREAS, in order to effectively manage the proposed summer curtailment program,
the City of Lodi Electric Utility is recommending that Planergy International (formerly Energy
Masters International and the City of Lodi's chosen energy services company), be selected to
administer, implement and provide the daily coordination to ensure program success.
Planergy International is currently providing load curtailment management services in several
other states across the country.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby authorizes
the City Manager to execute a contract between the City of Lodi and Planergy International, to
initiate the City of Lodi Electric Utility Summer 2001 ISO — Industrial Customer Load
Curtailment Program.
Dated: March 21, 2001
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I hereby certify that Resolution No. 2001-68 was passed and adopted by the Lodi City
Council in a regular meeting held March 21, 2001 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Pennino and Mayor
Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2001-68