Loading...
HomeMy Public PortalAbout024-2011 - RPL - Demand Response (2)Ordinance No. 24-2011 ORDINANCE AUTHORIZING PARTICIPATION IN PJM DEMAND RESPONSE PROGRAMS FOR RICHMOND POWER & LIGHT Deleted:/Town WHEREAS, the City©_of Richmond,_ Indiana owns and_ operates_a_municipal_,' electric utility known as Richmond Power & Light Company, under the supervision and control of the Board of Directors of Richmond Power & Light, pursuant to IC 8-1.5-3-4; and WHEREAS, the City of Richmond, Indiana is a member of and purchases all of its power and energy from the Indiana Municipal Power Agency (IMPA); and WHEREAS, IMPA has adopted and filed with the Indiana Utility Regulatory Commission (Commission) on December 20, 2010 an "Interruptible Rate Schedule — PJM-DRS-Emergency" setting forth IMPA's wholesale demand response rates; and WHEREAS, certain demand response programs offered by the PJM Interconnection, LLC (PJM) provide for a reduction in the consumption of electric energy by customers from their expected consumption in response to an load management event initiated by PJM; and WHEREAS, the Commission has ordered electric utilities, including Richmond Power & Light, subject to the jurisdiction of the Commission to file, for approval by the Commission, tariffs or riders authorizing the participation of their respective retail customers in PJM demand response programs, as the case may be; and WHEREAS, the Board of Directors of Richmond Power & Light (Board) has recommended to the Common Council of the City of Richmond, Indiana (Council) that it authorize by Ordinance the participation through Richmond Power & Light of its eligible electric utility customers in certain demand response programs offered by PJM and the adoption of demand response rates for customers participating in such programs; and WHEREAS, based upon the Board's recommendation, and, being duly advised, the Council has determined to authorize eligible electric utility customers to participate through Richmond Power & Light in certain demand response programs offered by PJM and to adopt demand response rates for customers participating in such programs. NOW THEREFORE BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA as follows: SECTION 1. The findings and determinations set forth in the preambles to this Ordinance are hereby made findings and determinations of the Council. SECTION 2. The City of Richmond, Indiana hereby authorizes eligible customers of Richmond Power & Light to participate through such utility in the PJM Emergency Demand Response Program. SECTION 3. The City of Richmond, Indiana hereby adopts and establishes for the use and service rendered by Richmond Power & Light the demand response rates set forth in "Rider IS — PJM-DRS-Emergency," attached hereto as "Exhibit A" and hereby incorporated by reference into this ordinance. SECTION 4. The attached Rider IS — PJM-DRS-Emergency shall be adopted as the terms and conditions under which customers of Richmond Power & Light may be eligible to participate in the demand response programs offered by PJM. SECTION 5. The attached Rider IS — PJM-DRS-Emergency shall be filed with the Commission and become effective upon approval by the Commission. SECTION 6. All ordinances and parts of ordinances in conflict herewith are hereby repealed. This ordinance shall be in full force and effect from and after its passage and approval by the Mayor. Passed and adopted this _le _ day of _April 2011, by the Common Council of the City of Richmond, Indiana. S/S Diana Pappin Diana Pappin, President Common Council of the City of Richmond, Indiana ATTEST: S/S Karen Chasteen City Clerk Karen Chasteen Presented by me to the Mayor of the City of Richmond, Indiana, this _191h day of _April 2011, at 9:00 a.m. _S/S Karen Chasteen City Clerk Karen Chasteen Signed and Approved by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _191h day of _April , 2011, at 9:05 a.m. _S/S Sarah L. Hutton Mayor Sarah L. Hutton ATTEST: S/S Karen Chasteen City Clerk Karen Chasteen EXHIBIT "A" Ordinance 24-2011 RICHMOND POWER & LIGHT City of Richmond Rider IS — PJM-DRS-Emergency Applicability This Rider is available for demand response service (DRS) to any retail customer of Richmond Power & Light (Utility) capable of meeting the terms and conditions listed below. The retail customer shall enter into a contract with the Utility and its wholesale electricity supplier the Indiana Municipal Power Agency (IMPA) for an interruptible load of at least 500 kW. The customer's DRS capacity under this Rider will be enrolled by IMPA on behalf of the Utility in the PJM Emergency Demand Response Program. Unless contracted directly with IMPA and the Utility, or through a curtailment service provider contracted with IMPA, the customer's DRS capacity is not eligible for enrollment in any PJM demand response program. Conditions of Service 1. The retail customer shall enter into a contract with the Utility and IMPA for an interruptible load of at least 500 kW. 2. The provisions of this Rider qualify under the PJM Emergency Demand Response Program as of the approval date of this Rider. The Utility and IMPA reserve the right to make changes to this Rider in order to continue to qualify under the PJM Emergency Demand Response Program, or otherwise, as appropriate. 3. The Utility and/or IMPA reserve the right to call for (request) customers to curtail their DRS load during a PJM-initiated Load Management Event. 4. The Utility and/or IMPA will endeavor to provide customer as much advance notice as reasonably possible of curtailments under this Rider, including an estimate of the duration of such curtailments. However, the customer's DRS load shall be curtailed within one (1) hour if so requested. All curtailments will apply for the delivery year, which is defined by PJM as June 1 through May 31 of the following year. Contracts will apply for multiple delivery years. In no event shall the customer be subject to DRS load curtailment under the provisions of this Rider for more than sixty (60) hours or ten (10) interruptions during any delivery year. The customer must agree to be subject to DRS curtailments of up to six (6) consecutive hours' duration for each curtailment event, on weekdays between noon and 8 p.m., Eastern Prevailing Time, for the months May through September and between 2 p.m. and 10 p.m., Eastern Prevailing Time, for the months of October through April. The Utility and/or IMPA will inform the customer regarding the communication process for notices to curtail. The customer is ultimately responsible for receiving and acting upon a curtailment notification from the Utility or IMPA. During each delivery year, the Utility or IMPA will conduct a test and verify the customer's ability to curtail as required by PJM. However, if a curtailment event is called by PJM prior to the test, then the event shall be considered the test for the delivery year. The Utility and IMPA reserve the right to re -test the customer if IMPA does not achieve the minimum 80% compliance testing standards for all of IMPA's DRS customers as required by PJM. These tests must be conducted for one hour on a weekday between noon and 8 p.m., Eastern Prevailing Time, from June 1 through September 30 during the delivery year. 9. If the customer fails to comply with the provisions of curtailment under this Rider, the Utility, IMPA and the customer will discuss methods to comply during future events. However, the Utility and IMPA reserve the right to discontinue service to the customer under this Rider if the problem cannot be resolved to their satisfaction. 10. The minimum DRS capacity contracted for under this Rider will be 500 kW. Customers with multiple electric service accounts with the Utility may aggregate those individual accounts to meet the 500 kW minimum DRS capacity requirement under this Rider; however, the DRS capacity committed for each individual account shall not be less than 100 kW. DRS capacity may not be aggregated with accounts with other utilities. 11. The Utility and/or IMPA reserve the right to call for (request) customers to curtail their DRS load when, in the sole judgment of the Utility or IMPA, an emergency condition exists on the system. The Utility shall determine whether an emergency condition exists and if curtailment of load served under this Rider is necessary in order to maintain service to the Utility's other firm service customers. 12. If not already installed, the customer will provide space, facilities and cost reimbursement to the Utility for a Utility -provided recording demand meter to measure the customer's integrated demand. The Utility and IMPA shall have the right to obtain meter readings and inspect and test meters at all times. 13. NO RESPONSIBILITY OR LIABILITY OF ANY KIND SHALL ATTACH TO OR BE INCURRED BY THE UTILITY OR IMPA FOR, OR ON ACCOUNT OF, ANY LOSS, COST, EXPENSE, OR DAMAGE CAUSED BY OR RESULTING FROM, EITHER DIRECTLY OR INDIRECTLY, ANY CURTAILMENT OF SERVICE UNDER THE PROVISIONS OF THIS RIDER. Customer Baseline Load Calculation A Customer Baseline Load (CBL) will be calculated for each hour corresponding to each curtailment event hour. Normally, the CBL will be calculated for each hour as the average corresponding hourly demands from the highest four (4) out of the five (5) most recent similar non-event days in the period preceding the relevant curtailment event. The highest load days are defined as the similar days (Weekday, Saturday, Sunday/Holiday) with the highest energy consumption spanning the curtailment event hours. In cases where the normal calculation does not provide a reasonable representation of normal load conditions, the Utility, IMPA and the customer may develop an alternative CBL calculation that more accurately reflects the customer's normal consumption pattern. Curtailed Demand The customer's Curtailed Demand shall be determined based upon the method of measurement chosen by the customer. The customer may choose one of two methods to measure the curtailed demand: 1) Guaranteed Load Drop (GLD) or 2) Firm Service Level (FSL). The method chosen shall remain in effect for the entire contract period. 1) Guaranteed Load Drop Method a) Each customer must designate a Guaranteed Load Drop (GLD), which amount shall be the minimum demand reduction that the customer will provide for each hour during a curtailment event or during a curtailment test. b) If the customer fails to fully comply with a request for curtailment under the provisions of this Rider or does not reduce load by the full GLD, a non-compliance charge shall apply. For this purpose, Actual Load Drop (ALD) is defined as the difference between the customer's CBL and their actual hourly load. If the ALD is less than the GLD, the Event Non -Compliance Demand shall be equal to the maximum difference between the GLD and the ALD occurring during the hours of the curtailment event. Otherwise, the Event Non -Compliance Demand shall be zero (0). 2) Firm Service Level (FSL) Method a) Firm Service Level Peak Load Contribution (PLC) — The customer's PLC will be calculated each year as the average of its load during PJM's five (5) highest peak loads during the twelve month period ended October 31 of the previous year. b) Available Curtailable Demand (ACD) - The customer must designate an ACD, defined as the difference between the PLC and the Firm Service Level (FSL). The FSL is the demand to which the customer agrees to reduce load to or below for each hour during a curtailment event. c) If the customer fails to fully comply with a request for curtailment under the provisions of this Rider, then the Non -Compliance Charge shall apply. If a customer is operating at or below their designated FSL during an event, it will be understood that they have no DRS capacity available with which to comply and will not be charged a non- compliance penalty. If the metered demand during the curtailment event is above the FSL, the Event Non -Compliance Demand shall be equal to the maximum difference between the customer's metered demand and the FSL during the hours of the curtailment event. Otherwise the Event Non -Compliance Demand shall be zero (0). Curtailed Energy The Curtailed Energy shall be determined for each curtailment event hour, defined as the difference between the customer's CBL for that hour and the customer's metered load for that hour. Curtailment Credits The Curtailment Energy Credit shall be 95% of the AEP East Load Zone hourly Real - Time Locational Marginal Price (LMP) established by PJM (including congestion and marginal losses) for each curtailment event hour. The Curtailment Demand Credit shall be calculated as 95% of the applicable PJM Reliability Pricing Model (RPM) Base Residual Auction price for the delivery year The current RPM prices and Curtailment Demand Credits through May 31, 2014 are shown below: Delivery Year RPM Price - $/MW-Day Curtailment Demand Credit - $/kW -Month (*) June 1, 2011 to May 31, $110.00 $3.18 2012 June 1, 2012 to May 31, $16.46 $0.48 2013 June 1, 2013 to May 31, $27.73 $0.80 2014 (*) — Curtail Demand Credit = RPM Price * 95% * 365 Days / 12 Months / 1000 Within 30 days of completion of each PJM RPM Base Residual Auction, IMPA will notify Utility and Customer of the Curtailment Demand Credit for that delivery year. Monthly Demand Credit The Monthly Demand Credit shall be applicable to each month the customer is served under this Rider, regardless of whether or not there are any curtailment events during the month. Guaranteed Load Drop Method — The Monthly Demand Credit shall be equal to the product of the GLD and the Curtailment Demand Credit. Firm Service Level (FSL) Method — The Monthly Demand Credit shall be equal to the product of the ACD and the Curtailment Demand Credit. Monthly Event Credit An Event Credit shall be calculated for each event hour equal to the product of the Curtailed Energy for that hour and the Curtailment Energy Credit for that hour. The Monthly Event Credit shall be the sum of the hourly Event Credits for all events occurring in the calendar month. The customer shall not receive Event Credit for any curtailment events to the extent that the customer's DRS capacity is already reduced due to a planned or unplanned outage as a result of vacation, renovation, repair, refurbishment, force majeure, strike, economic conditions, or any situation other than the customer's normal operating conditions. Annual Non -Compliance Charge Charges for non-compliance will be based on the customer's Non -Compliance Demand which reflects any failure by the customer to fully comply with requests for curtailment under the provisions of this Rider. The Annual Non -Compliance Charge will be computed on an estimated basis at the completion of the September delivery month and on an actual basis at the completion of the delivery year. The Annual Non -Compliance Charge shall be equal to the average Non -Compliance Demand times the Curtailment Demand Credit times 12. In the event that the estimated Annual Non -Compliance Charge is greater than zero, such charge shall be assessed as a uniform offset to the Customer Credits for remaining months of the delivery year, September through May. In the event the actual Annual Non -Compliance Charge is greater than zero, the customer will be invoiced for any amount greater than the Customer Credit for the last month of the delivery year. In no event shall the Annual Non -Compliance Demand Charge exceed the sum of the Customer Credits, excluding the Annual Non -Compliance Charge, for the delivery year. Customer Credit The net amount of the Monthly Demand Credit, Monthly Energy Event Credit and Annual Non -Compliance Charge will be provided to the Utility within two (2) billing months after the end of the delivery month. A customer may request the aggregation of individual customer account credits into a single credit. Adjustments to Customer Billing Units During months when the customer's interruptible load is interrupted and customer is paid the Curtailment Energy Credits discussed above, the customer's Metered Energy shall be increased by the verified curtailed energy. If the customer is billed on a coincident peak basis, during months when the customer's interruptible load is interrupted during the hour of the Utility's Billing Demand from IMPA, the Customer's metered demand shall be increased by the verified GLD or ACD. Term Contracts under this Rider shall be made for an initial period of four (4) delivery years and shall remain in effect until either parry provides three (3) years' written notice prior to March 1 of its intention to discontinue service under the terms of this Rider for the fourth delivery year beginning after the notice is provided. Special Terms and Conditions Customer specific information, including, but not limited to, DRS contract capacity, shall remain confidential.