HomeMy WebLinkAboutAgenda Report - June 20, 2001 E-16AGENDA TITLE: Adopt resolution approving the Electric Utility Pilot Project - 2001 Small Business
Load Curtailment
MEETING DATE: June 20, 2001
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution approving the
Lodi Small Business 2001 Load Curtailment Pilot Project, and
authorize the City Manager to sign a contract allowing Silicon Energy
to manage the project on behalf of the City of Lodi.
BACKGROUND INFORMATION: The California Energy Commission (CEC), as authorized in state
legislation, has developed a series of energy conservation programs
designed to reduce energy consumption through the remainder of
2001. One such effort is the CEC's `Demand Responsive HVAC &
Lighting Building Systems Program.' This program, once installed, will allow for individual electric utilities
to automatically reduce air conditioning and/or lighting consumption at participating customer sites. The
overall goal of the CEC's program is to reduce hundreds of megawatts of electric energy usage during the
designated peak hours (for the summer of 2001, the peak hours are considered 11 am to 7pm, Monday
through Friday).
The City of Lodi Electric Utility, in partnership with Silicon Energy (considered a national leader in energy
management system development), is proposing the Lodi Small Business 2001 Load Curtailment Pilot
Project. The target is the nearly 2000 small commercial electric utility customers of Lodi. Through
participation in this program, a new seven-day programmable thermostat is installed at the customer's site
(store or office space), then connected to a controller module with integrated 2 -way, wireless
communications hardware. When the California Independent System Operator (CAISO) issues a request
for load -shedding or curtailment, the device installed at the participating small business sites is notified via
this communications link -automatically setting the thermostat to a higher temperature. The result is
reduced energy consumption through reduced air conditioning usage. The total CEC. funding requested is
$725,000 to implement the Lodi Small Business 2001 Load Curtailment Pilot Project.
Under the proposed City of Lodi program (funded via the CEC's 'Demand Responsive HVAC & Lighting
Building Systems Program), Silicon Energy will serve as the general contractor to ensure that all
communication links, thermostats and modules are properly installed to customer satisfaction.
**Note: In an effort to secure a portion of the CEC's available funding, Silicon Energy is attempting to
represent a number of municipal utilities throughout California to the CEC. Silicon Energy is the only firm to
approach the City of Lodi Electric Utility with this proposed program. A number of other companies (similar
APPROVED:
. Dixon Flynn - ClfyPfanager
to Silicon Energy) are pursuing other CEC-sponsored load curtailment programs, but have not
approached or communicated with the City of Lodi Electric Utility in pursuit of state funding.
The City of Lodi Electric Utility staff respectfully recommends approval of this proposed program, as it is
consistent with other load curtailment efforts previously created for Lodi customers (Lodi Summer 2001
Load Curtailment Project; Lodi Export Group Load Management Pilot Project).
FUNDING: None required
Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lechner, Manager of Customer Programs
ANVIRUist
C: City Attorney
APPROVED:
H. Dixon Flynn - City Manager
RESOLUTION NO. 2001-164
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE LODI SMALL BUSINESS
2001 LOAD CURTAILMENT PILOT PROJECT, AND AUTHORIZING THE CITY MANAGER'
TO SIGN A CONTRACT ALLOWING SILICON ENERGY TO MANAGE THE PROJECT
ON BEHALF OF THE CITY OF LODI
---------------------------------------------------------------------------
---------------------------------------------------------------------------
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 California Energy Commission (CEC), as authorized in state legislation,
has developed a series of energy conservation programs designed to reduce energy consumption
through the remainder of 2001, one of which is the "Demand Responsive HVAC & Lighting
Building Systems Program'; and
WHEREAS, this program will allow for individual electric utilities to automatically reduce
air conditioning and/or lighting consumption at participating customer sites. The overall goal of
the CEC's program is to reduce hundreds of megawatts of electric energy usage during the
designated peak hours (for the summer of 2001, the peak hours are considered 11 a.m. to 7 p.m.,
Monday through Friday); and
WHEREAS, the City of Lodi Electric Utility, in partnership with Silicon Energy, is proposing
the Lodi Small Business 2001 Load Curtailment Pilot Project. The target is the nearly 2,000 small
commercial electric utility customers of Lodi; and
WHEREAS, through participation in this program, a new seven-day programmable
thermostat is installed at the customer's site and then connected to a controller module with
integrated 2 -way, wireless communications hardware. When the California Independent System
Operator (CAISO) issues a request for load -shedding or curtailment, the device installed at the
participating small business sites is notified via this communications link — automatically setting
the thermostat to a higher temperature. The result is reduced energy consumption through
reduced air conditioning usage. The total CEC funding requested is $725,000 to implement the
Lodi Small Business 2001 Load Curtailment Pilot Project; and
WHEREAS, under the proposed City of Lodi program (funded via the CEC's "Demand
Responsive HVAC & Lighting Building Systems Program"), Silicon Energy will serve as the
general contractor to ensure that all communication links, thermostats and modules are properly
installed to customer satisfaction.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby approves the
Lodi Small Business 2001 Load Curtailment Pilot Project and authorizes the City Manager to sign
a contract allowing Silicon Energy to manage the project on behalf of the City of Lodi.
Dated: June 20, 2001
-------------------------------------------------
-------------------------------------------------
I hereby certify that Resolution No. 2001-164 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held June 20, 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
2001-164