HomeMy WebLinkAboutAgenda Packet 07/13/2010Utility Advisory Committee
Jack Pittis Conference Room
Port Angeles, WA 98362
July 13, 2010
AGENDA
I. Call To Order
II. Roll Call
III. Approval Of Minutes For June 8, 2010
IV. Late Items
V. Discussion Items:
A. Preventative Maintenance Software Presentation
B. Consultant Selection for Stormwater Engineering Services
C. 2010 Water System Plan
D. Street Lighting Project Update (verbal report only)
E. Energy Northwest Interlocal Agreement Modification No. 2 for the
Morse Creek Hydroelectric Project
F. Electric Utility 2010 Resource Plan
G. Bonneville Power Administration Cooperative Agreement No. 48475
and Consultant Agreement Amendment No. 2 for Residential Demand
Response Program
H. Consultant Agreement Amendment No. 3 for Commercial and Industrial
Demand Response Program
I. Wireless Mobile Data System Grant Application Update (verbal report
only)
J. Industrial Supply Water Meter (verbal report only)
VI. Information Only Items:
A. Enron Settlement Agreement Update
B. Advanced Metering Infrastructure System Project Update
C. Utility Rate Studies Calendar
VII. Next Meeting Date August 10, 2010
VIII. Adjournment
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UTILITY ADVISORY COMMITTEE
GUEST SIGN UP SHEET
I. Call To Order
Chairman Di Guilio called the meeting to order at 3:00 p.m.
II. Roll Call
Councilmembers Present: Chairman Di Guilio, Cherie Kidd, Max Mania, Pat Downie
Councilmembers Absent:
Utility Advisory
Committee Members
Present:
Staff Present:
City Council Special Meeting/Utility Advisory Committee
Jack Pittis Conference Room
Port Angeles, WA 98362
June 8, 2010
3:00 p.m.
Others Present: Shirley Nixon Center For environmental Land and Policy
III. Approval Of Minutes
Brooke Nelson
Paul Elliott, Dean Reed
Glenn Cutler, Larry Dunbar, Steve Sperr, Phil Lusk, Terri
Partch, Terry Gallacher, Brian Smith, Ken Dubuc, Cate
Rinehart, Rick Hostetler (Arrived at 3:58)
Chairman Di Guilio asked if there were any corrections to the minutes of May 11, 2010.
Dean Reed moved to approve the minutes. Councilmember Kidd seconded the motion,
which carried unanimously. Chairman Di Guilio abstained due to absence at the meeting.
IV. Late Items
Elwha Water Source Metering
Summer Water Use
V. Discussion Items
A. Stormwater Rate Reduction Incentives
Terri Partch, Stormwater Program Manager, gave a power point presentation
summarizing the requirements for a 25% stormwater rate reduction and giving examples
of how these requirements can be met. There was a brief discussion.
Information only. No action taken.
A
B. Wireless Mobile Data System Grant Application Update
Larry Dunbar, Deputy Director of Power Systems, gave a power point presentation
providing estimated operating and maintenance costs. A discussion followed.
Information only. No action taken.
C. Energy Efficiency And Conservation Block Grant Capital
Agreement
Phil Lusk, Power Resources Manager, revealed that the City had received a grant from
the American Recovery and Reinvestment Act of 2009 which will enable the installation
of cooling/economizer repairs for the City Hall main floor offices, heating, ventilation
and air conditioning improvements for the second floor legal department are and a Direct
Digital Controls system. There was a brief discussion.
Dean Reed moved to recommend City Council authorize the Mayor to sign Capital
Agreement Contract Number F10- 52110 -044 with the Washington State
Department of Commerce for a $135,000 grant for the City Hall Annex Energy
Conservation Improvements project. Councilmember Kidd seconded the motion,
which carried unanimously.
D. Advanced Metering Infrastructure System Project Update
Larry Dunbar, Deputy Director of Power Systems, reviewed the components contained in
the packet, responded to questions, and provided clarification. A lengthy discussion
followed.
Information only. No action taken.
VI. Late Items
A. Elwha Water Source Metering
Glenn Cutler, Director of Public Works and Utilities, gave a brief overview noting that
the City is monitoring the situation.
Information only. No action taken.
B. Summer Water Use
Councilmember Downie indicated that several individuals had approached him about the
possibility of the City giving people an incentive to water their lawns during the summer
to prevent so many brown areas. Staff advised that the trend is to not water due to lower
water in the streams and as a conservation measure.
4
Information only. No action taken.
VII. Next Meeting Date: July 13, 2010
VIII. Adjournment: 4:14 p.m.
Dan Di Guilio, Mayor Janessa Hurd, City Clerk
Dan Di Guilio, Chair Cate Rinehart, Administrative
Utility Advisory Committee Specialist II
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PORTANGELES
W A S H I N G T O N U.S. A.
Utility Advisory Committee Memo
Date: July 13, 2010
To: Utility Advisory Committee
From: Glenn A. Cutler, P.E., Director of Public Works Utilities
Subject: Preventative Maintenance Software Presentation
Summary: The accompanying demonstration and briefing provides an update of the effort to
deploy the Computerized Maintenance Management System for the Water and Stormwater Utilities
and information on the remaining 2010 project to web -base it.
Recommendation: Continued endorsement of the previous recommendation to support the
CMMS deployment project and the 2010 web basing project.
Background /Analysis: In February 2009, the City signed a contract with Weston Solutions,
Inc. for implementation services and a software licensing agreement with Azteca Systems, Inc. for
the Computerized Maintenance Management System (CMMS). This system was procured for the
City's water utility in order to leverage the existing Geographical Information System (GIS)
environment that was already in use and provide the Water Utility with an efficient tool to manage
facility and equipment infrastructure, resources, operations, maintenance work, and permit activities
for the Port Angeles Water Treatment Plant and distribution system. The CMMS would be used to
manage preventive maintenance, maintenance activities, maintaining the work and asset history of
the plant and distribution system, and interact directly with the Supervisory Control and Data
Acquisition system (SCADA) to issue work orders.
Two additional projects were approved in the 2010 budget. The first project was for the
implementation of the CMMS for the stormwater utility in order to maintain the activities required
for the Western Washington Phase II Municipal Stormwater Permit, budgeted for $30,000 to be
performed by a consultant. Instead, this project was successfully implemented earlier this year by
the City's GIS and Stormwater Utility staff, eliminating the need for the consultant contract. This
project has been cancelled.
The second project was to implement web basing of the CMMS which is presently deployed as
individual desktop applications with the database residing on a server along with some web site
improvements, budgeted at $38,000. This project will allow the City to use the GIS and CMMS
systems throughout the City's computers eliminating the need to purchase additional licenses. It
also allows Information Technology staff to administer the CMMS program centrally as a web
based application which will save a great deal of effort. Additionally, it allows the City to broaden
its public outreach to the citizens of Port Angeles for select information in the GIS and
July 13, 2010 UAC
Re: Preventative Maintenance Software Presentation
Page 2
CMMS. Lastly, it will provide better access to stored data increasing the responsiveness of the
system for its users. The City already has the licensing for the web basing software as well as
owning the server. This project will use the technical expertise of a consultant to setup the web
basing.
City Council requested that an update be provided prior to proceeding.
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: July 13, 2010
To: Utility Advisory Committee
From: Kathryn Neal, P.E., Engineering Manager
Subject: Consultant Selection for Stormwater Engineering Services
Summary: The City desires to implement stormwater system improvements to resolve winter
flooding in the west side neighborhood between F and I Streets. In March, the City received seven
responses to a Request for Proposal for design services. From these proposals and subsequent
interviews, PACE Engineers, Inc. was selected as the best qualified firm to provide Stormwater-
related engineering services. The proposed contract is for the first phase of design for the 4 St.
Stormwater Improvements.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to sign an Agreement with PACE Engineers, Inc. for professional services in an
amount not to exceed $165,100 and make minor modifications to the Agreement if necessary.
Background /Analysis: One of the goals of the Stormwater Utility, founded in 2003, was to
address systemic stormwater problems within the City. The 4 Street Stormwater Improvements
project is the first major project undertaken since then to address flooding issues. Winter flooding
occurs regularly in the intersection of 6 and H Streets as well as along 4 Street between F and I
Streets. An analysis of the problem by City engineering staff indicated that a number of the
stormdrain pipes in the neighborhood are undersized. In the fall of 2009, the City constructed a
stormwater bypass pipe, and installed a backflow prevention valve in front of a residence at 1512
West 4 Street to temporarily relieve localized flooding.
In March of 2010, the City received seven responses to a Request for Proposal for design services.
From these proposals and subsequent interviews, PACE Engineers, Inc. was selected as the best
qualified firm to provide stormwater- related engineering services. City staff and PACE have
negotiated an Agreement for Professional Services. The Agreement consists of the City's standard
consultant agreement with attachments defining a scope of work, schedule and budget for each task.
Because the City intends to explore more than one strategy to resolve the flooding issues in this
neighborhood, and each strategy will result in very different design and construction costs, the
proposed agreement with PACE includes only the first phase of design, which includes site
explorations and an alternatives analysis.
N. \UAC\Final \Stormwater Engineering Services Agreement.doc
Consultant Selection for Stormwater Engineering Services
July 13, 2010
Page 2 of 2
After the preferred alternative and design strategy are selected (and if the design work in Phase 1 is
satisfactory) staff will return to the UAC to recommend a contract amendment to complete the
Phase II design and develop final contract documents.
PACE Engineers has estimated the design fee for Phase II to be approximately $110,000. The
current planning -level estimate for design and construction of this project is $950,000 to
$1,400,000.
The scope of work for the Phase I design is summarized in the table below:
Tasks
1. Project management and meetings
2. Hydrologic hydraulic analysis
3. Initial environmental assessment
4. Initial geotechnical evaluation
5. Alternative analysis schematic layout/cost estimates
6. Contingency
The alternatives analysis for this project will include the following:
Attachment: Map of study area
Total
Budget
$27,000
$24,000
$26,500
$38,500
$29,100
$20,000
$165,100
1. An evaluation of the feasibility of implementing low impact development (LID) stormwater
facilities such as rain gardens,
2. Potential deep infiltration wells, and
3. The more traditional approach of increasing the size of the underground pipe systems.
If the LID alternative is feasible for this project, City staff plans to submit a grant application to the
Department of Ecology for the LID elements of the project.
Increased pipe size would likely require construction of a new stormwater outfall to the lagoon at
the base of Ediz Hook. If rain gardens or deep infiltration wells are feasible, these alternatives
would be brought to the neighborhood residents for their input.
A map illustrating the study area is attached for more information. Sufficient funds for Phase I
design are included in the current 2010 Stormwater Utility Budget. Additional funds for Phase II
design in the amount of $300,000 will be included in the upcoming Water and Wastewater Utility
Revenue Bond issue.
It is recommended that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the City Manager to sign an Agreement with PACE Engineers, Inc. for
professional services in an amount not to exceed $165,100.
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W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: July 13, 2010
To: Utility Advisory Committee
From: Kathryn Neal, P.E., Engineering Manager
Subject: 2010 Water System Plan
Summary: The Washington State Department of Health (DOH) requires that all Group B Water
Systems update their Water System Plan every six years. Local Water Purveyors and DOH have
reviewed the draft Plan and staff has responded to all comments received. The Plan is now ready
to be finalized and approved by City Council.
Recommendation: Forward a favorable recommendation to City Council to approve the
2010 Water System Plan.
Background /Analysis: The City is required to update the Comprehensive Water System
Plan (WSP) to meet the requirements of the Washington State Department of Health (DOH), as
outlined in its Water System Planning Handbook and specified in the current version of WAC 246-
290. The City's most recent WSP was approved in 2002.
The principal goal of the WSP is to make the best use of available resources in order to provide
high quality service and protect the health of utility customers. The DOH Office of Drinking Water
policy encourages the City to use this WSP as a working tool to look at all of its needs and
statutory requirements, and chart a plan of action for achieving these goals.
The most important historical and future issues being addressed in this update to the WSP are
summarized below and will be discussed in a presentation:
The requirement for a Watershed Control Program.
Construction of the Port Angeles Water Treatment Plant, under the federal Elwha Dam
Removal Project.
Compliance with requirements of the Stage 2 Disinfection Byproducts (DBP) Rule and the
Long Term 2 (LT2) Enhanced Surface Water Treatment Rule.
Creation of a new hydraulic model developed from the City's GIS system to replace the
existing hydraulic model that was developed and calibrated in 1994.
Adoption of the HB 1338, the Municipal Water Law (MWL) that established new
principles related to water rights place of use, duty to serve and water use efficiency.
N \UAC\Final\2010 Water System Plan doc
2010 Water System Plan
July 13, 2010 UAC
Page 2 of 2
Work on the WSP began in March 2008 under a consultant agreement with CH2M Hill. The draft
WSP was submitted to adjacent water purveyors (Dry Creek Water Association, Black Diamond
Water District, and Clallam County PUD #1) for comment in 2008. After these comments and
final City staff comments were addressed, a final draft WSP was submitted to DOH and
Washington State Department of Ecology (DOE).
A review letter was received from DOH on March 1, 2010 detailing 27 comments and action
items. The City has responded to all comments. Due to delays in the completion of the design and
construction of the Port Angeles Water Treatment Plant (a water quality mitigation requirement of
the Elwha Dam Removal Project) some elements of the WSP were not completed until recently.
It is requested that the UAC forward a favorable recommendation to City Council to approve the
2010 Water System Plan.
Project ID Utility
DR03 -2009 Stormwater
2010 BOND SUMMARY 7/13/2010
Project Title
4th Street Stormwater Improvements
WW04 -2008 Wastewater Carbon Scrubbers WWTP
WW02 -2008 Wastewater Septage Receiving Station WWTP
WW05 -2008 Wastewater Digester Mixing Improvement WWTP
WW05 -2006 Wastewater Sewer Trestle at Francis & 8th
WT01 -2008 Wastewater Advanced Metering Infrastructure - Wastewater
WW02 -2005 Wastewater Plant De- Watering Improvements
WW01 -2008 Wastewater Dry Polymer Feeder Replacement WWTP
WW02 -2010 Wastewater Plant Programmable Logic Controller/HMI replacement
WT64 -1999 Water McDougal Pressure Subzone Improvements
WT01 -2008 Water Advanced Metering infrastructure - Water
WT03 -2009 Water Transfer Morse Creek Water Lines to Cleflam PUD
WT02 -2009 Water Concrete Cylinder Pipe Replacement
CL03 -2008
CL05 -2009
CL05 -2010
Total WNW/SW Bond
Electric
Electric
Electric
Total Electric Bond
Total 2010 Revenue Bonds
Advanced Metering Infrastructure - Electric
Replace streetlights with low energy bulbs
Pole Replacement
2010 Bond
300,000
20,000
50,000
20,000
475,000
1,113,000
20,000
20,000
100,000
40,000
1,11 3,000
100,000
2,005,000
5,376,000
2,777,000
1,200,000
900,000
4,877,000
1 0,253,000
July 13, 2010
Street Lighting Project Update
Street Lighting Project Update
City Street _fighting System Consists of
1,700 Fixtures
Average age is 25 years
Average Annua Energy .,se of the
System 1,380,000 kWh.
Average Annua Energy Costs $98,700
Existing Street Lights
Roadway (Cobra Head)
Po e Thp Country
Decorative (Acorn)
r-7-7twKW: "7.
Roadway Light Replacements
HID Induction Induction LED
200W HPS 100W Lamp/ 150W Lamp/ 88 LED
150W Driver 150W Driver Array
Fixture Cost 177.04 425.00 495.00 800.00
Annual Energy Costs 64.81 24.00 32.16 38.16
Annual Operating Savings 63% 50% 41%
Rated Life (hrs) 24,000 100,000 100,000 100,000
Initial System Lumens 16,000 11,000 12,000 9,600
Mean System Lumens 14,400 8,175 8,915 na
Efficacy (Lumens per Watt) 59 70 76 71
Color Rendering Index 22 80 80 75
Simple Payback Period (yrs) 10 15 30
SPP w/ BPA incentive (yrs) 7 11 24
xstflg 200N HPS Cobra Head
\ew 50W 50W nduction _'ght'ng
Street Jg hf ng Prect .,pdate
Exp ore opportunities for advanced contro s.
Eva uate operating and maintenance savings.
Se ect and samp e rep acements for eva uation
for the town country and the decorative
fixtures.
Se ect rep acement fixtures.
Pursue BPA ncentives.
Bidding and construction in 2010/2011.
Date:
PORTANGELE
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
July 13, 2010
To: Utility Advisory Committee
From: Larry Dunbar, Deputy Director of Power Systems
Terry Dahlquist, P.E., Electrical Engineering Manager
Subject: Energy Northwest Interlocal Agreement Modification No. 2 for the Morse Creek
Hydroelectric Project
Summary: After obtaining competitive bids to upgrade the Supervisory Control and Data
Acquisition (SCADA) System for the Morse Creek Hydroelectric Project it is apparent that an
increase in the project cost is warranted.
Recommendation: Forward a favorable recommendation to City Council to approve a
$28,000 amendment to the 2010 Electric Utility budget to be used for CFP Project CL13-
2009, and authorize the City Manager to sign Modification No. 2 to the Interlocal Agreement
with Energy Northwest in an amount not to exceed $28,000, and make minor modifications
to the agreement, if necessary.
Background /Analysis: On July 15, 2008, City Council approved a resolution to become a
member of Energy Northwest. Energy Northwest has the authority to acquire, construct, operate
and own plants, systems and other facilities for the generation and/or transmission of electric
energy and power.
On December 15, 2009, City Council approved an Interlocal Agreement with Energy Northwest to
upgrade the Supervisory Control and Data Acquisition (SCADA) System for the Morse Creek
Hydroelectric project (CFP Project CL13 -2009 attached) for $42,750. On January 19, 2010, City
Council approved amendment No. 1 to the Interlocal Agreement to include a Spill Prevention
Containment and Control plans and Stormwater Pollution Prevention plan for $10,945, which were
unfunded mandates required by the recent Federal Energy Regulatory Commission license and
Department of Ecology 401 Water Quality Certification.
The upgrades include an interface to the existing electric distribution SCADA System,
incorporation of existing control points, additional temperature and water flow sensors, installation
of a programmable logic controller and communications to allow remote operation. The upgrade
will increase generation and reduce operating costs. Completion of the upgrades is planned for
this September during the annual shutdown.
N \UAC\Final\Energy Northwest Interlocal Agreement Modification 2 doc
Energy Northwest Interlocal Agreement Modification No. 2 for the Morse Creek Hydroelectric Project
July 13, 2010
Page 2
After obtaining competitive bids to upgrade the SCADA System it is apparent that an increase in
the project cost is warranted, which is due to increased subcontractor cost. There are several
reasons for the increased costs. Between the time that initial cost estimates were obtained and the
Interlocal Agreement was executed, about six months of time elapsed. There was also a total of 80
control points included in the final design to comply with the new unfunded mandates and only 24
were included in the initial cost estimates.
Energy Northwest solicited competitive bids and the low bidder was $18,370 above the initial cost
estimate. A construction contingency for unforeseen costs is also recommended, which would
only be used if necessary and was not included in the current agreement. Energy Northwest has
generously offered to waive its $12,750 engineering and project management fee to demonstrate
its willingness to support the City's project.
A summary of the current and proposed costs with and without Energy Northwest's engineering
and project management fees is presented below.
Current Agreement
Engineering and project management fee $12,750
SCADA sub contractor cost 30,000
Construction contingency
Proposed Increase
Attachment: Capital Facilities Plan Project CL13 -2009
Waived $12,750
48,370 48,370
9,630 9,630
$42,750 $58,000 $70,750
$15,250
Proposed Agreement
$28,000
Staff believes that the increased sub contractor costs are justified and reasonable and would not
expect a different outcome if the project had been completed otherwise. Sufficient funds for
additional cost are available in the Morse Creek Contingency Replacement reserve.
Staff recommends that the Utility Advisory Committee forward a favorable recommendation to
City Council to approve a $28,000 amendment to the 2010 Electric Utility budget to be used for
CFP Project CL13 -2009 and authorize the City Manager to sign Modification No. 2 to the
Interlocal Agreement with Energy Northwest in an amount not to exceed $28,000, and make minor
modifications to the agreement, if necessary.
CAPITAL FACILITIES PLAN PROJECT
Title: Morse Creek Hydro SCADA System Improvements
Project Description
This project is to fund the enhancement of Morse Creek Hyrdro's operational
controls. The system is currently operated by a 1980's era computer controller.
The acquisition of a new programmable logic controller and equipment would
include the design, programming and engineering required for interfacing the
existing infrastructure. The new control scheme would improve the overall
operation of the system by enabling the system to generate power under a larger
range of water flow conditions now required by the facility's water quality
certificate. Operation would include the generator, turbine, manual start/stop
sequence, auto stop, and emergency shutdown. The new controls would also
provide Supervisory Control and Data Acquisition (SCADA) capabilities and
remote startup functions to reduce the need for site visits.
Project CL13 2009
Estimated Project Costs
Planning/Design
Land/Right-of-Way.
Construction. 1 75,000
Other:
Total
75,000
Estimated Project Funding
Reserves:
Contributions:
Grants:
Bonds:
Loans.
Utilities 75,000
General Fund Current
Unknown:
Total 75,000
Yearly Expense Summary Capital/Net Operating
Prior Years 1 2009 1 2010 2011 1 2012 1 2013 I 2014 1 2015 1 Project Total
-1 I 75,000 -1 -1 I I I 75,000
Year Construction Complete /Operational: Operating Cost Amount.
Right of Way No SEPA Required No Other Permits No
City Priority: Legal Mandate Yes Concurrency• No Contract Yes
Department Public Works Utilities Division Light
Contact James Klarr Cost Center Div Priority. 2
Justification:
The current controls are limited, unreliable, and labor intensive to operation and maintain. Hydro projects of this size
are typically operated as an off -site operation. SCADA capabilities would provide off -site operation, control and data
logging. This would reduce labor costs, minimize liability, help meet regulatory compliance issues, and provide a higher
degree of operating efficiency and would provide more days of operation. During the last year, 88 additional days of
generation would have been realized for about a $14,000 benefit. The new FERC license requires the City to provide
them with monitored streamflow data by March 1, 2010.
Impact if not executed:
Difficulty or inability to meet federal and state licensing requirements. Some reports involve data that may require daily
on -site visits to obtain, making the cost of compliance with licensing labor intensive. New SCADA enabled controls
would make this process automatic. Operating fewer days than possible will increase wholesale purchase power costs.
Date Revised 4/27/2009
pORTANGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: July 13, 2010
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Electric Utility 2010 Resource Plan
Summary: The City's electric utility must comply with an unfunded Washington state mandate to
develop a Resource Plan. A component of the enabling legislation is that consumer participation
in the development of the Resource Plan is encouraged. Further, the governing body of a
consumer -owned utility must approve the 2010 and any future Resource Plans after it has provided
public notice and hearing.
Recommendation: Forward a favorable recommendation to City Council to proceed with a
public hearing on the Resource Plan.
Background /Analysis: As previously presented to the Utility Advisory Committee in 2008,
the electric utility is required by RCW 19.280.030 to update its Resource Plan (Plan) that must be
submitted to the state Department of Commerce by September 1, 2010. The first state mandated
Plan was completed in 2008. Electric utilities with more than 25,000 customers are required to
prepare an Integrated Resource Plan, which is a much more extensive effort.
The principal desired outcome of the Plan is to ensure electric utilities have adequate resources to
meet projected loads, especially as BPA moves to a tiered rate structure from its current melded
rate schedule.
While the Plan is not a legally binding document, at a minimum it must provide a description of
current power loads and resources, as well as the estimated power loads and resources for 2015
and 2020 time periods. The state required Plan must be updated every two years and may be
available to the public from the City's website.
In its projection of the resources estimated to serve future loads, the Plan must explain why those
resources were chosen, and if those chosen resources were not conservation, efficiency or
renewable energy resources, an explanation must be provided on why such a decision was made.
Staff is currently preparing an update to the 2008 Plan based on typical growth rates and the City's
current and anticipated future mix of resources. The schedule for an on -time delivery of the 2010
Plan is summarized on the following page.
N \UAC\Final\Electnc Utility 2010 Resource Plan doc
Electric Utility 2010 Resource Plan
July 13, 2010
Page 2
Electric Utility 2010 Resource Plan Schedule
Dates Action Items
July 13, 2010 UAC recommendation to Council to set public hearing
July 20, 2010 Council sets public hearing for August 3, 2010
August 3, 2010 Plan presented to Council; Public hearing opened
August 10, 2010 UAC update on Plan
August 17, 2010 Council continues public hearing and approves resolution
August 27, 2010 Final Plan and approved resolution submitted to Commerce
pOJRTNGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: July 13, 2010
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Bonneville Power Administration Cooperative Agreement No. 48475 and Consultant
Agreement Amendment No. 2 for Residential Demand Response Program
Summary: A proposal was submitted in April to the Bonneville Power Administration for a
residential demand response pilot project and a Cooperative Agreement in an amount not to exceed
$367,000 has been offered to the City. An amendment to the consulting services agreement with
EES Consulting is also proposed to provide essential support services.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to: 1) sign Cooperative Agreement No. 48475 with the Bonneville Power
Administration for a $367,000 award for the City's Advanced Metering Infrastructure
Residential Demand Response Pilot Project, 2) sign Amendment No. 2 to the Consulting
Services Agreement with EES Consulting for an amount not to exceed $80,560, and 3) make
minor modifications to the Cooperative Agreement and Consulting Services Agreement, if
necessary.
Background /Analysis: Demand response (DR) is a practice that cycles or shuts down
customer equipment during peak electric utility demand events to reduce Bonneville Power
Administration (BPA) wholesale demand charges. At its simplest, DR can uses a control device to
briefly curtail major appliances or space conditioning units. Peak demand is measured as the
maximum rate of energy consumed during one hour each month.
Although DR is not a new practice for electric utilities across the nation, it has not been used by
most electric utilities buying power from the BPA due to low peak demand rates. However,
beginning October 1, 2011, the primary opportunity for the City to reduce its wholesale power
costs under BPA's new wholesale Tiered Rate Methodology (TRM) will be to manage its peak
energy demand. While there are many unresolved details, peak demand management may be able
to reduce the City's TRM wholesale power costs by as much as $3 million annually ($1.6 million
distribution system; $1.4 million industrial transmission system).
Earlier this year, the Utility Advisory Committee supported and City Council approved the
submission of a proposal to the BPA to participate in its Funding Opportunity Announcement
(FOA) No. 1530 for Residential Demand Response Pilot Projects. The City submitted a proposal,
and the BPA issued a formal notification of its intent to award a Cooperative Agreement to the
City, with the BPA cost -share not to exceed $367,000.
N: \UAC\Final\BPA DR Cooperative Agreement.doc
BPA Residential Demand Response Cooperative Agreement
July 13, 2010
Page 2
EES Consulting, Inc. (EESC) will assist the City with the Residential Demand Response Pilot
Project (Project) by performing the economic evaluation of the cost effectiveness of DR and other
technical project related support services. At the conclusion of its evaluation, EESC will provide
the City and BPA with a final report describing the data input, the economic analysis and resulting
cost effectiveness of the residential demand response strategies evaluated. This final report will
provide the information required to determine if a full -scale deployment of residential DR is
warranted. The EESC contractual services will not exceed a total of $80,560, with a 100% cost
share to be provided by the BPA. The economic and technical services are important to BPA
because they plan to use the final report as part of its decision making for future programs. In
addition to $80,560 for consulting services, BPA will provide $179,440 in matching funds for DR
equipment and $107,000 in customer incentives, for a total BPA award of $367,000.
Staff requests that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the City Manager to: 1) sign Cooperative Agreement No. 48475 with the
Bonneville Power Administration for a $367,000 award for the City's Advanced Metering
Infrastructure Residential Demand Response Pilot Project, 2) sign Amendment No. 2 to the
Consulting Services Agreement with EES Consulting for an amount not to exceed $80,560, and 3)
make minor modifications to the Cooperative Agreement and Consulting Services Agreement, if
necessary.
Attachments: Residential DR Proposal
Cooperative Agreement No. 48475
July 8, 2010
In reply refer to: NSSP -4
Mr. Lusk:
Regards,
O dz0,40 b
Krista McCracken
Financial Assistance Officer
Supply Chain Services
Enclosures
cc: Official File NSSP -4
Department of Energy
Bonneville Power Administration
P.O. Box 3621
Portland, Oregon 97208 -3621
Mr. Phil Lusk
Power Resources Manager
City of Port Angeles
Public Works Utilities Department
321 E. 5` Street
Port Angeles, WA 98362
Subject: Notice of Award Cooperative Agreement No. 48475
INTERNAL BUSINESS SERVICES
This correspondence serves as formal notification of award in response to Funding Opportunity
Announcement (FOA) No. 1530 for Residential Demand/Response Pilots. Enclosed is
Cooperative Agreement No. 48475 for signature by the party or parties authorized to commit the
City of Port Angeles to the terms of the agreement. Pre -award costs are authorized pursuant to
the notice dated June 7, 2010.
I have designated Frank Brown as the Project Technical Representative for this agreement. A
copy of his letter of designation is enclosed. Frank will in turn designate a Field Representative
after award. At a later date, I may designate a Financial Assistance Officer's Representative to
administer the agreement on my behalf. In any case, you will be provided with names and
contact information for these parties.
If you have any questions about this agreement, please contact me as soon as possible at 503-
230 -3583 or klmccracken(bna.gov to discuss. Otherwise, please return the signed agreement to
me via email. In closing, 1 congratulate you and the City of Port Angeles on this award. We at
BPA look forward to working with you.
UNITED STATES
GOB
Mail 1mvotce To
See Page 2
Vendor
CITY OF PORT ANGELES
LIGHT DEPT
PO BOX 1150
PORT ANGELES WA 98362
Attn: PHIL LUSK
Contract Title: RESIDENTIAL. DEMAND RESPONSE PILOT PROJECT
Total Value $367,000.00
Pricing Method: COST SHARE (NO FEE)
Performance Period: 08/02/10 08/01/12
Contractor Signature
Printed Nanie /Title
Date Signed
Peace DU'eul Myutries to.
KRISTA L. MCCRACKEN
Title: CONTRACT SPECIALIST
Phone: 503- 230 -5383
Fax 503- 230 -4508
NOT TO EXCEED
Payment Terms:
BPA Contracting Officer
Date Signed
COOPERATIVE AGREEMENT BONNEVILLE
POWER ADMINISTRATION
Contract 00048475
Release
Page 1
Days Net 30
Cooperative Agreement No. 48475
in response to
FOA No. 1530 Residential Demand Response Pilot Projects
Title Residential Integrated Automated Metering Infrastructure Demand Response Project
Project Technical Representative Frank Brown 206 220 -6774 febrown( boa.aov
Financial Assistance Officer Krista McCracken 503 230 -5383 klmccracken anboa.aov
This cooperative agreement is hereby issued as follows and consists of the signature page, this page, the
terms and conditions, the project description, and budget.
1. The total estimated total budget for this project is $654,110. This award is in the amount of $367,000,
or 56.1 percent of the total estimated budget, which constitutes BPA's cost share.
2. Please submit requests for reimbursement, other required financial reports, progress reports and
deliverables marked with agreement number to the PTR at the e-mail address provided herein or by
US Mail to:
Bonneville Power Administration
Attn: Frank Brown KLS- Seattle
909 1st Avenue, Suite 380
Seattle, WA 98104 -3636
4. Allowable costs under this grant incurred prior to the date of its award and execution are eligible for
reimbursement effective to June 7, 2010
5. This grant incorporates by reference 2 CFR Part 225, Cost Principles for State, Local, and Indian
Tribal Governments (OMB Circular A -87).
Cooperative Agreement No. 48475 Page 2
COOPERATIVE AGREEMENT
TABLE OF CONTENTS
UNIT 1 TERMS AND CONDITIONS 4
CLAUSE 4 -1 REGULATIONS APPLICABLE TO BPA FINANCIAL ASSISTANCE 4
CLAUSE 4 -2 NONDISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS 4
CLAUSE 4 -3 EXAMINATION OF RECORDS 4
CLAUSE 4 -4 REPORTING PROGRAM PERFORMANCE 4
CLAUSE 4 -6 REIMBURSEMENT PAYMENT AND FINANCIAL REPORTING REQUIREMENTS5
CLAUSE 4 -7 ENVIRONMENTAL PROTECTION 5
CLAUSE 4-8 LIMITATION OF LIABILITY 5
CLAUSE 4 -9 ACKNOWLEDGMENT OF SUPPORT 5
CLAUSE 4 -10 DISPUTES 5
CLAUSE 4 -11 TRAVEL 6
CLAUSE 4 -12 FINANCIAL ASSISTANCE OFFICER'S REPRESENTATIVE 6
CLAUSE 4-13 PROJECT TECHNICAL REPRESENTATIVE 6
CLAUSE 4 -14 FIELD REPRESENTATIVE 6
CLAUSE 4 -15 COST REIMBURSEMENT BASIS 6
CLAUSE 4 -16 BPA- FURNISHED EQUIPMENT OR MATERIAL 7
CLAUSE 4 -17 SUSPENSION OR TERMINATION 7
CLAUSE 4 -18 CHANGE OR ABSENCE OF THE PRINCIPAL INVESTIGATOR OR
DESIGNATED KEY PERSONNEL 8
CLAUSE 4 -19 PAPERWORK REDUCTION 8
CLAUSE 4 -21 REQUIREMENT FOR AUDIT 8
CLAUSE 4 -23 PERSONAL PROPERTY MANAGEMENT 8
CLAUSE 4 -26 BUDGET CHANGES AND LINE ITEM TRANSFERS 9
CLAUSE 3 -3 CERTIFICATION, DISCLOSURE, AND LIMITATION REGARDING PAYMENTS
TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS 10
CLAUSE 3 -6 DRUG -FREE WORKPLACE 10
UNIT 2 PROJECT DESCRIPTION 14
UNIT 3 BUDGET 26
Cooperative Agreement No. 48475 Page 3
UNIT 1 TERMS AND CONDITIONS
CLAUSE 4 -1 REGULATIONS APPLICABLE TO BPA FINANCIAL ASSISTANCE
(BFAI 4.10) (SEP 04)
The Bonneville Power Administration's financial assistance function is managed and executed solely in
accordance with the Bonneville Financial Assistance Instructions (BFAI). The BFAI is available without charge on
the Internet at http: /www /bpa.gov. Copies of the BFAI may be obtained for $15.00 each. Requests and
comments should be sent to Head of the Contracting Activity GK, Bonneville Power Administration, P.O. Box
3621, Portland, OR 97208. Subscriptions are not available.
CLAUSE 4- 2 •NONDISCRIMINATIONIN-FEDERALLY ASSISTED PROGRAMS
(BFAI 4.10) (SEP 04)
The recipient shall comply with 10 CFR Chapter II, Section 600.39 which provides that "...no person shall on the
ground of race, color, national origin, sex, handicap, or age be excluded from participation in, be denied the
benefits of, be subjected to discrimination under, or be denied employment, where the main purpose of the
program or activity is to provide employment or when the delivery of program services is affected by the
recipient's employment practices, in connection with any program or activity receiving Federal assistance from
BPA.
CLAUSE 4 -3 EXAMINATION OF RECORDS
(BFAI 4.10) (SEP 04)
(a) The recipient shall maintain books, records, documents, and other evidence and accounting procedures and
practices, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been
incurred and anticipated to be incurred for the performance of this award The Financial Assistance Officer or
a representative shall have the right of access to any books, documents, papers, or other records of
recipients and subrecipients which are pertinent to the award, in order to make audits, examinations, excerpts
and transcripts.
(b) Such material shall be made available at the office of the recipient, at all reasonable times, for inspection,
audit or reproduction, until the expiration of 3 years from the date of final payment under this award or for
such longer period, if any, as is required by applicable statute. If any litigation, claim, negotiation, audit or
other action involving the records has been started prior to the expiration of the 3 year period, the records
must be retained until completion of the action and resolution of all issues which arise from it, or until the end
of the regular 3 year penod whichever is later.
CLAUSE 4 -4 REPORTING PROGRAM PERFORMANCE
(BFAI 4.10M)(FEB 10)
(a) Frequency. Unusual events having a negative impact on the project should be reported to the Project
Technical Representative (PTR) as soon as they are discovered. A progress report is due quarterly. A final
report on the project must be submitted no later than 90 days after completion of the project.
(b) Contents. The report should contain updates to the work plan and a comparison of the actual
accomplishments to those planned for the period. If the project is not on schedule, a brief explanation of the
reason is required. Unusual situations encountered which impacted the costs or effectiveness of the project
should be identified and explained. The report should include key accomplishments during the reporting
period and any issues or risks identified.
Cooperative Agreement No. 48475 Page 4
CLAUSE 4 -6 REIMBURSEMENT PAYMENT AND FINANCIAL REPORTING REQUIREMENTS
(BFAI 4.10M)(JUL 10)
(a) Payment for services performed under this award will be reimbursed by Vendor Express payment after
performance of the services. Recipient requests for reimbursements, and recipient financial reporting
requirements shall be made as follows:
(1) Reimbursements. Standard Form 270e, Request for Advance and Reimbursement, shall be used when
requesting reimbursement for costs incurred on the project. Requests should not be made more
frequently than monthly. An original should be submitted to the Project Technical Representative (PTR).
(2) Interim cost reports. Intenm cost reports on SF -425a, Federal Financial Report (short Form), shall be
submitted to the Project Technical Representative (PTR) quarterly, within 30 days after the end of the
reporting period.
(3) Final Cost Report. The final cost report shall be submitted to the PTR within 90 days after the end of the
effective period. It shall be submitted in the same format as the budget as awarded The final cost report
shall compare the amounts allocated in the award budget to the amounts expended for each budget
element.
CLAUSE 4 -7 ENVIRONMENTAL PROTECTION
(BFAI 4.10)(SEP 04)
The recipient shall insure that the facilities under its ownership, lease or supervision which will be utilized in the
accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violation
Facilities and that it will notify BPA of the receipt of any communication from the Director of the EPA Office of
Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA.
CLAUSE 4 -8 LIMITATION OF LIABILITY
(BFAI 4.10)(SEP 04)
The recipient agrees to hold BPA harmless against any direct or consequential damages claimed by the recipient
or third parties arising from or related to Recipient's performance, during the period of this award.
CLAUSE 4 -9 ACKNOWLEDGMENT OF SUPPORT
(BFAI 4.10)(SEP 04)
Publication of the results of this award is encouraged. The recipient shall include in any article or other
announcement that is published an acknowledgment that the research was supported, in whole or in part, by BPA
(including the award number), but that such support does not constitute an endorsement by BPA of the views
expressed therein.
CLAUSE 4 -10 DISPUTES
(BFAI 4.10) (SEP 04)
(a) Except as otherwise provided in this award, any unresolved dispute concerning a question of fact arising
under this award shall be decided by the Financial Assistance Officer (FAO), who shall reduce that decision to
writing and mail, or otherwise furnish a copy thereof to the Recipient. The decision of the Financial
Assistance Officer shall be final and conclusive. The FAO's decision may be appealed to the BPA HCA. The
decision of the BPA HCA shall be final and conclusive.
(b) This clause does not preclude consideration of law questions in connection with decisions provided for in
paragraph (a) above; provided, that nothing in this award shall be construed as making final the decision of
any administrative official, representative, or board, based on a question of law.
Cooperative Agreement No. 48475 Page 5
(c) The use of alternate disputes resolution processes are encouraged, and may be used as negotiated between
the parties.
CLAUSE 4 -11 TRAVEL
(BFAI 4.10)(SEP 04)
(a) Domestic travel may be an appropriate charge to this award, and prior authorization for specific trips is not
required. In accordance with the applicable cost pnnciples, reasonable, necessary, and allowable travel costs
may be charged on an actual basis or per diem basis in lieu of actual costs incurred, provided the method
used results in charges consistent with those normally allowed by the organization in its regular operations
and travel is at less than business class common carrier fare, unless otherwise approved in advance by the
Financial Assistance Officer.
(b) Foreign travel may be charged to this award without prior approval if detailed in the approved budget. If
foreign travel is required, but not detailed in the approved budget, it must be approved in writing by the
Financial Assistance Officer prior to beginning the travel. Foreign travel will be reimbursed on the same basis
as domestic travel.
CLAUSE 4 -12 FINANCIAL ASSISTANCE OFFICER'S REPRESENTATIVE
(BFAI 4.10)(SEP 04)
The Financial Assistance Officer's Representative (FAOR) shall have all the rights, powers, and privileges of the
Financial Assistance Officer necessary to the administration of the award: provided, however, that the FAOR is
not empowered to execute modifications to the award, to make a final decision of any matter which would be
subject to appeal, or to suspend or terminate for any cause the recipient's right to proceed.
CLAUSE 4 -13 PROJECT TECHNICAL REPRESENTATIVE
(BFAI 4.10)(SEP 04)
(a) The Project Technical Representative (PTR) is the authonzed representative of the Financial Assistance
Officer (FAO) for technical actions performed in relation to the award. This includes the functions of (1)
review of work performed, and (2) interpretation of technical program requirements.
(b) The PTR is not authorized to act for the FAO in the following matters: (I) modifications that change the amount
of award, technical requirements or time for performance; (2) suspension or termination of the recipient's right
to proceed; and (3) final decisions on any matters subject to appeal.
CLAUSE 4 -14 FIELD REPRESENTATIVE
(BFAI 4.10)(SEP 04)
(a) The Field Representative (FR) will be appointed by Financial Assistance Officer (FAO) or the Project
Technical Representative (PTR) and is authorized by the PTR for reviewing project accomplishments and
recipient's technical reports, and interpretation of award requirements.
(b) The Field Representative (FR) is not authorized to act in the following matters: (I) modifications that change
the award amount or general direction of the project; (2) suspension or termination of the recipient's right to
proceed; (3) approval of financial requests and reports, and (4) final decisions on any matters subject to
appeal.
CLAUSE 4 -15 COST REIMBURSEMENT BASIS
(BFAI 4.10)(SEP 04)
This award is funded on a cost reimbursement basis without fee or profit, not to exceed the amount awarded as
indicated on the face page and is subject to a refund of unexpended funds to BPA
Cooperative Agreement No. 48475 Page 6
CLAUSE 4-16 BPA- FURNISHED EQUIPMENT OR MATERIAL
(BFAI 4.10)(SEP 04)
(a) The recipient hereby releases and agrees to hold BPA, or persons acting upon behalf of the BPA harmless for
any and all liability of every kind and nature whatsoever resulting from the receipt, shipping, installation,
operation, handling, condition, use and maintenance of the material furnished by BPA under this award.
(b) Neither BPA nor persons acting on behalf of BPA make any warranty or other representation, express or
implied, that the material provided under this award will accomplish the results for which it is requested or
intended
CLAUSE 4 -17 SUSPENSION OR TERMINATION
(BFAI 4.1.0)(SEP.04)
(a) Definitions.
(1) "Suspension" is an action by BPA that temporarily suspends BPA support under the award pending
corrective action by the Recipient or pending a decision by BPA to terminate the award.
(2) "Termination" means the cancellation of BPA sponsorship, in whole or in part, at any time prior to the date
of completion.
(b) Suspension or Termination for cause.
(1) Notice of Suspension. Prior to issuing a suspension notice, efforts will be made by BPA and the recipient
to informally resolve disagreements. If informal efforts fail, BPA may issue a notice of suspension that
specifies the date on which the suspension will take effect. During the suspension, BPA may withhold
further payment and prohibit the recipient from incurring additional obligations of funds pending corrective
action by the recipient or a decision by BPA to terminate. BPA shall allow all necessary and proper costs
that the recipient could not reasonably avoid during the period of suspension provided that they would
otherwise be allowable.
(2) Notice of Termination for Cause. Pnor to issuing a termination notice, efforts will be made by BPA and the
recipient to informally resolve disagreements. If informal efforts fail, BPA may issue a notice of
termination that will take effect as stated in the letter. The Financial Assistance Officer shall determine
the severity of the violation that caused the termination for cause, and determine what costs are
appropriate for reimbursement.
(c) Termination for convenience. BPA or the recipient may request that the award be terminated in whole or in
part when both parties agree that the continuation of the project would not produce beneficial results
commensurate with the further expenditure of funds. The two parties shall agree upon the termination
conditions, including the effective date and, in the case of partial terminations, the portion to be terminated.
The recipient shall not incur new obligations for the terminated portion after the effective date, and shall
cancel as many outstanding obligations as possible. BPA shall allow full credit to the recipient for the BPA
share of the noncancellable costs, properly incurred by the recipient prior to termination.
(d) Authority to issue notices. The Financial Assistance Officer is the only person authorized to suspend or
terminate the award.
Cooperative Agreement No. 48475 Page 7
CLAUSE 4 -18 CHANGE OR ABSENCE OF THE PRINCIPAL INVESTIGATOR OR DESIGNATED KEY
PERSONNEL
(BFAI 4.10)(SEP 04)
Since BPA funding of this project is based, to a significant extent, on the qualifications and level of participation of
the Principal Investigator(s), or key personnel, a change of Pnncipal Investigator(s), or key personnel, or their
level of effort is considered a change in the approved project. The approval of BPA must be obtained prior to any
change of the Principal Investigator or key personnel who have been identified as key personnel. In addition, any
continuous absence of the Principal Investigator or key personnel in excess of 3 months, or plans for the Principal
Investigator or key personnel to become substantially less involved in the project than was indicated in the
approved application requires BPA pnor approval. The recipient must contact the Financial Assistance Officer
(FAO) immediately upon becoming aware that any of these changes are likely and must receive FAO approval
before effecting any such change.
CLAUSE 4 -19 PAPERWORK REDUCTION
(BFAI 4.10)(SEP 04)
(a) This award is subject to the requirements of the Paperwork Reduction Act of 1996 as implemented by the
Office of Management and Budget rules, "Controlling Paperwork Burdens on the Public," published at 5 CFR
1320 (47 FR 13666, 3- 31-43) if the recipient will collect information from ten or more respondents either:
(1) At the specific request of BPA, or
(2) If the award requires specific BPA approval of the information collection or the collection procedures.
(b) A statement outlining proposed information collection under (a) above shall be submitted by the recipient to
the Financial Assistance Officer named on the face page of this award at least 90 days prior to the intended
date of information collection. BPA will seek the requisite approval from the Office of Management and
Budget and will promptly notify the recipient of the disposition of the request.
CLAUSE 4 -21 REQUIREMENT FOR AUDIT
(BFAI 4.10)(SEP 04)
The recipient is required to obtain an audit in accordance with OMB Circular A 133.
CLAUSE 4 -23 PERSONAL PROPERTY MANAGEMENT
(BFAI 4.10) (SEP 04)
(a) This clause provides guidance for the utilization and disposition of personal property furnished by BPA or
acquired in whole or in part with BPA funds, or whose cost was charged to a project supported by BPA funds.
Also see BPI Clause 19 -1.
(b) BPA -owned personal property.
(1) The following BPA property will be provided for use in this award:
None
(2) Title remains vested in BPA. The recipient shall submit an annual reconciled physical inventory listing by
October 1 of each year of such property in its custody to the PTR.
(3) Upon completion of the award, or when the property is no longer needed, the recipient shall provide an
inventory of the property to BPA and request disposition instructions.
(c) Recipient- acquired personal property.
Cooperative Agreement No. 48475 Page 8
(1) When the recipient acquires personal property using BPA funds, in whole or in part, title vests with the
recipient.
(2) BPA will request the recipient to transfer title to the following property at the end of the project:
None
(3) BPA reserves the right to transfer title to the property listed below to itself or a third party at the
completion of the project.
None
(4) If BPA does not provide disposition instructions for property identified in (b)(3) within 120 days of,the end
of the project, BPA relinquishes the right to transfer title and the recipient may retain the property, or
dispose of it as appropriate.
(5) BPA does not reserve the right to transfer title to the following personal property. The recipient may retain,
use or dispose of this property.
Description Units
Water Heater Demand Controllers 500
Home Area Networks 90
Residential Thermal Storage Units 10
(6) The recipient shall submit a reconciled physical inventory listing by October 1 every second year of the
award of personal property in its control.
(d) Property Management Standards for property which BPA will, or reserves the right to, require the transfer of
title at the conclusion of the award:
(1) Property records shall be maintained which include a description of the property, source of property,
including award number, acquisition date, location, use and condition of the property and the date the
information was reported, unit acquisition cost, ultimate disposition of property, and date of disposition.
(2) The recipient shall maintain a system to insure adequate safeguards to prevent Toss, damage, or theft of
the property.
(3) The recipient shall follow adequate maintenance procedures to keep the property in good condition.
CLAUSE 4 -26 BUDGET CHANGES AND LINE ITEM TRANSFERS
(BFAI 4.10) (SEP 04)
If unanticipated project needs arise, the recipient is authorized to make budget line item transfers not exceeding
ten per cent of the total approved budget. Reallocation of funds exceeding this amount must have the prior
written approval of the FAO. The recipient shall send a written request for such budget changes to the FAO
through the Project Technical Representative. The FAO will respond to the request within 30 days.
Recipients or subrecipients shall obtain prior approval whenever any of the following changes are anticipated:
(a) Changes in the scope or the objective of the project or program that will require a budget revision.
(b) The need for additional funding
Cooperative Agreement No. 48475
Page 9
CLAUSE 3 -3 CERTIFICATION, DISCLOSURE, AND LIMITATION REGARDING PAYMENTS TO INFLUENCE
CERTAIN FEDERAL TRANSACTIONS
(SEP 98)(BPI 3.5.6)
(a) As used in this clause:
"Covered Federal action" means
(1) The awarding of any Federal contract.
(2) The extension, continuation, renewal, amendment, or modification of any Federal contract.
"Indian tribe" and "tribal organization" have the meaning provided in section 4 of the Indian Self- Determination
and Education Assistance Act (25 U.S.C. 450B) and includes Alaskan Natives.
"Influencing or attempting to influence" means making, with the intent to influence, any communication to or
appearance before an officer or employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with any covered Federal action.
"Local government" means a unit of government in a State and, if chartered, established, or otherwise recognized
by a State for the performance of a governmental duty, includes a local public authority, a special district, an
intrastate district, a council of governments, a sponsor group representative organization, and any other
instrumentality of a local government.
"Person" means an individual, corporation, company, association, authority, firm, partnership, society, State, and
local government, regardless of whether such entity is operated for profit or not for profit. This term excludes an
Indian tribe, tribal organization, or any other Indian organization with respect to expenditures specifically permitted
by other Federal law
"Reasonable compensation" means, with respect to a regularly employed officer or employee of any person,
compensation that is consistent with the normal compensation for such officer or employee for work that is not
furnished to, not funded by, or not furnished in cooperation with the Federal Government.
"Reasonable payment" means, with respect to professional and other technical services, a payment in an amount
that is consistent with the amount normally paid for such services in the private sector.
"Recipient" includes all contractors and subcontractors. The term excludes an Indian tribe, tribal organization, or
any other Indian organization with respect to expenditures specifically permitted by other Federal law.
"Regularly employed" means, with respect to an officer or employee of a person requesting or receiving a Federal
contract, an officer or employee who is employed by such person for at least 130 working days within one year
immediately preceding the date of the submission that initiates agency consideration of such person for receipt of
such contract. An officer or employee who is employed by such person for less than 130 working days within one
year immediately preceding the date of the submission that initiates agency consideration of such person shall be
considered to be regularly employed as soon as he or she is employed by such person for 130 working days.
"State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a territory
or possession of the United States, an agency or instrumentality of a State, and a multi- State, regional, or
interstate entity having governmental duties and powers.
(b) The offeror, by signing its offer, hereby certifies to the best of his or her knowledge and belief that:
(I) No Federal appropriated funds have been paid or will be paid to any person for influencing or attempting
to influence an officer or employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress on his or her behalf in connection with the awarding
of any Federal contract or the extension, continuation, renewal, amendment, or modification of any
Federal contract.
Cooperative Agreement No. 48475 Page 10
(f)
(g
(2) If any funds other than Federal appropriated funds (including profit or fee received under a covered
Federal transaction) have been paid or will be paid to any person for influencing or attempting to influence
an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress on his or her behalf in connection with this solicitation, the offeror
shall complete and submit, with its offer, Standard Form -LLL, Disclosure of Lobbying Activities, to the
Contracting Officer.
(3)
He or she will include the language of this certification in all subcontract awards at any tier and that all
sub recipients of subcontract awards in excess of $100,000 shall certify and disclose accordingly.
(c) Submission of this certification and disclosure is a prerequisite for making or entering into this contract
imposed by section 1352, title 31, U.S. Code. Any person who makes an expenditure prohibited under this
provision or who fails to file or amend the disclosure form to be filed or amended by this provision, shall be
subject to a civil penalty of not Tess than $10, 000 and not more than $100,000 for each such failure.
(d) A contractor who requests or receives from an agency a Federal contract shall file with that agency a
disclosure form, OMB standard form LLL, Disclosure of Lobbying Activities, if such person has made or has
agreed to make any payment using non appropriated funds (to include profits from any covered Federal
action), which would be prohibited under this clause if paid for with appropriated funds.
(e) The contractor shall file a disclosure form at the end of each calendar quarter in which there occurs any event
that materially affects the accuracy of the information contained in any disclosure form previously filed by
such person under paragraph (b) of this clause. An event that materially affects the accuracy of the
information reported includes
(1) A cumulative increase of $25,000 or more in the amount paid or expected to be paid for influencing or
attempting to influence a covered Federal action; or
(2) A change in the person(s) or individual(s) influencing or attempting to influence a covered Federal action;
or
(3) A change in the officer(s), employee(s), or Member(s) contacted to influence or attempt to influence a
covered Federal action.
The contractor shall require the submittal of a certification, and if required, a disclosure form, by any person
who requests or receives any subcontract exceeding $100,000 under the Federal contract.
All subcontractor disclosure forms (but not certifications), shall be forwarded from tier to tier until received by
the pnme contractor. The prime contractor shall submit all disclosure forms to the Contracting Officer at the
end of the calendar quarter in which the disclosure form is submitted by the subcontractor. Each
subcontractor certification shall be retained in the subcontract file of the awarding contractor.
(h) Any person who makes an expenditure prohibited under this clause or who fails to file or amend the
disclosure form to be filed or amended by this clause shall be subject to a civil penalty as provided by 31 U. S.
Code 1352. An imposition of a civil penalty does not prevent the Government from seeking any other remedy
that may be applicable.
CLAUSE 3 -6 DRUG -FREE WORKPLACE
(SEP 98)(BPI 3.6.4)
(a) The recipient agrees that with respect to all employees to be employed under this agreement it will provide a
drug -free workplace as described in this clause.
(b) Definitions. As used in this clause "Controlled substance" means a controlled substance in schedules
through V of section 202 of the Controlled Substances Act (21 U.S.C. 812), as from time to time amended,
and as further defined in regulation at 21 CFR 1308.11- 1308.15, as amended.
Cooperative Agreement No. 48475 Page 11
"Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both,
by any judicial body charged with the responsibility to determine violations of the Federal or State criminal
drug statutes.
"Criminal drug statute" means a Federal or non Federal criminal statute involving the manufacture,
distribution, dispensing, possession or use of any controlled substance.
"Drug -free workplace" means the site(s) for the performance of work done by the recipient in connection with
a specific agreement at which employees of the recipient are prohibited from engaging in the unlawful
manufacture, distribution, dispensing, possession, or use of a controlled substance.
"Employee" means an employee of a recipient directly engaged in the performance of work under a
Government agreement. "Directly engaged" is defined_ to include all direct cost employees and any other
recipient employees who have other than a minimal impact or involvement in agreement performance.
"Individual" means an offeror /recipient that has no more than one employee including the offeror /recipient.
(c) The Recipient, if other than an individual, shall within 30 calendar days after award (unless a longer period
is agreed to in writing for agreements of 30 calendar days or more performance duration); or as soon as
possible for agreements of less than 30 calendar days performance duration
(1) Publish a statement notifying its employees that the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is prohibited in the recipient's workplace and specifying the
actions that will be taken against employees for violations of such prohibition;
(2) Establish an on -going drug -free awareness program to inform such employees about-
(A) The dangers of drug abuse in the workplace;
(B) The recipient's policy of maintaining a drug -free workplace;
(C) Any available drug counseling, rehabilitation, and employee assistance programs; and
(D) The penalties that may be imposed upon employees for drug abuse violations occurring in the
workplace.
(3) Provide all employees engaged in performance of the agreement with a copy of the statement required by
subparagraph (c)(1) of this clause;
(4) Notify such employees in writing in the statement required by subparagraph (c)(1) of this clause that, as a
condition of continued employment on this agreement, the employee will-
(A) Abide by the terms of the statement; and
(B) Notify the employer in writing of the employee's conviction under a criminal drug statute for a violation
occurring in the workplace no later than five (5) days after such conviction.
(5) Notify the Financial Assistance Officer in writing within ten (10) days after receiving notice under
subdivision (c)(4)(B) of this clause, from an employee, or otherwise receiving actual notice of such
conviction. The notice shall include the position title of the employee,
(6) Within 30 days after receiving notice under subparagraph (c)(4)(B) of this clause of a conviction, take one
of the following actions with respect to any employee who is convicted of a drug abuse violation occurring
in the workplace:
(A) Taking appropriate personnel action against such employee, up to and including termination; and /or
Cooperative Agreement No. 48475 Page 12
(B) Require such employee to satisfactorily participate in a drug abuse assistance or rehabilitation
program approved for such purposes by a Federal, State, or local health, law enforcement, or other
appropriate agency.
(7) Make a good faith effort to maintain a drug -free workplace through implementation of subparagraphs
(c)(1) through (c)(6) of this clause.
(d) In addition to other remedies available to the Government, the Recipient's failure to comply with the
requirements of paragraph (c) of this clause may, pursuant to BPI 3.6.3 render the recipient subject to
suspension of agreement payments, termination of the agreement for default, and suspension or debarment.
Cooperative Agreement No. 48475 Page 13
UNIT 2 PROJECT DESCRIPTION
1.0 RESIDENTIAL INTEGRATED AUTOMATED METERING INFRASTRUCTURE
DEMAND RESPONSE PILOT PROJECT
1.1 GENERAL DESCRIPTION
This proposal is submitted in response to the Funding Opportunity Announcement No. 1530 issued by the
Bonneville Power Administration (BPA) for Residential Demand Response (DR) Pilot Projects. The City of Port
Angeles (City) is actively involved in upgrading its electric utility facilities to an advanced metering infrastructure
(AMI) system with smart meters capable of incorporating rate designs to mimic BPA's forthcoming wholesale
power Tiered Rate Methodology (TRM). If this project is selected for funding by BPA, the City will purchase and
install demand response equipment, to include 500 residential water heating DR controls, 90 in -home displays
with controllable home area network capabilities, and 10 thermal storage devices for home heating. These units
will be deployed on a voluntary basis to customers meeting specific prerequisites according to the equipment
testing matrix in Table 1 -1 below.
uipment .T Testing
Number of Participants in Control
Group
Baseline Control Group
(no DR equipment)
1 Water Heater Only Group
Water Heater HAN Group (Utility
Controlled)
Water Heater HAN Group
(Customer Controlled)
Water Heater Thermal Storage
Group
1 TOTAL
1
1
Numh
Participants
100
400 1
90
0
(0 hours /day impact)
100
30
15
0
Participants in Critical Peak
Hour Group
(1 hour /day impact)
0
370
85
0
10 0 10
600 1 145 1 465
The equipment identified in Table 1 -1 is designed to achieve real demand savings results, eliminating any self
selection bias. In addition, for the Home Area Network (HAN), the results will be able to distinguish between
demand savings due to the in -home display showing a critical peak penod (with the customer responding by
shutting down their home heating system) versus general overall demand savings due only to the physical
reminder of the in -home display. Other pilot projects from the region and across the nation are reporting positive
results for DR projects; however, it is not clear if these results are over stating the potential demand savings
Once the pilot DR equipment is operational, the City will collect qualitative and quantitative data for one full
calendar year. The pilot project will conclude with the submission of a report that, based on load and survey data,
will evaluate the cost effectiveness of DR and the City's electric utility customer's acceptance of DR technologies.
1 Cntical peak penod is defined as the City's non coincident peak (NCP) that would exceed the Contract Demand Quantity allocated to the City under
BPA'S wholesale TRM
2 Faruqui, Ahmad, Sergici, Sanem and Shanf, Ahmed, The Impact of Informational Feedback on Energy Consumption A Survey of the Expenmental
Evidence (May 1, 2009) Available at SSRN http /ssm com/abstract= 1407701
Cooperative Agreement No. 48475 Page 14
1.2 PROJECT RATIONALE
The City is located on the Olympic Peninsula in Washington State, an ideal location for DR technologies because
the peninsula is presently served by a capacity- constrained, single -feed radial transmission system. The area
has experienced significant population growth and it is projected that power- transmission capacity in the region
may be inadequate to supply demand during extremely cold winter conditions The development of wide -scale
DR options have the potential to benefit the City and the region in avoiding costly transmission upgrades and
lowering the City's wholesale power supply costs.
Transmission issues may be further exacerbated by the Elwha Ecosystem Restoration Project, which is the
second largest ecosystem restoration project in the history of the National Park Service after the Everglades.
This federal project will consist of removing two dams, the Glines and Elwha, and their reservoirs from the Elwha
River, which is expected to begin in 2011. Together, these two dams generate over 28 megawatts of electricity
and are the only significant sources for power generation on the Northern Olympic Peninsula. Their removal may
create further challenges for the City and the BPA for power balancing between distant generation sources and
peak demand loads.
In 2010 and 2011, the City will purchase and install a new Advanced Metering Infrastructure (AMI) system to
provide "smart" electric and water meters for nearly all of its utility customers, and will develop a robust two -way
communications system and integrate it with the City's existing fiber -optic network. This project also includes an
initial investigation of "Smart Grid" applications such as distribution utility automation, peak load management,
demand response, and home area networks. A key deliverable for the proposed AMI system will be its functional
flexibility to interface with the electric utility's Supervisory Control and Data Acquisition (SCADA) System to control
demand response applications and the City's substation conservation voltage reduction application.
In preparing for the shift to the BPA's TRM for wholesale power purchases effective October 1, 2011, the City is
proceeding with a retail TRM study to independently assess and evaluate methods to equitably allocate the BPA
wholesale TRM power costs to customer rate classes (e.g., residential, commercial, etc.), and to develop retail
rate design options for each rate class based on the shift to the BPA wholesale TRM power costs. The most
advantageous BPA wholesale TRM power cost allocation methodology and retail rate design option developed by
this Retail TRM study will be incorporated into the AMI project and used by the City next year as part of a Cost -of-
Service Analysis to determine the City's actual retail rates that will be effective on January 1, 2012. Among other
items, the development of these retail rate design options includes a DR rate for each rate class, which includes
an evaluation of the wholesale TRM NCP demand costs and potential retail customer incentives.
1.3 GOALS AND OBJECTIVES
In anticipation of the change to the TRM, the goal of this project is to demonstrate the ability to manage the City's
NCP demand in order to meet the following objectives:
Reduce the City's NCP demand above its assigned contract demand quantity (CDQ)
Reduce wholesale power supply costs for the City's residential customers
Minimize the perceived impact (e.g., inconvenience, discomfort) to the City's residential customers (e.g.,
water heating and space comfort)
Maximize the City's residential customers' acceptance of DR
Delay or eliminate regional transmission system upgrades
1.4 CONSUMER IMPACT
A voluntary group of 600 residential participants will be enrolled in this pilot project. Each customer will be
selected to meet a minimum set of screening criteria and then placed in either a blind control group or a
3 Pacific Northwest National Laboratory, Pacific Northwest GridWise Testbed Demonstration Projects, Part I Olympic Peninsula Project, DOE Contract
Number DE- ACO5- 76RL01830, October 2007.
Cooperative Agreement No. 48475
Page 15
participant group. Customers will be asked to complete quarterly online surveys to evaluate their perceived
impact of the DR technologies.
The maximum impact to the residential customer will be the curtailment of the electric water heating and electric
space heating equipment during the City's NCP demand period. Based on other regional studies, the City
anticipates this will occur approximately 1 2 times per week. The City is also proposing a dispatchable DR
component to the pilot project that would allow BPA to control its critical system peak for either generation or
transmission. However, for commercial use of any dispatchable DR resource, the incentives to be offered by the
BPA to the City would need to be defined and mutually agreed upon.
1.5 RECRUITMENT
The-City will request volunteers-to participatein the residential DR pilot project: Volunteers will"be.compensatedi'
with a $10 /month incentive, either a credit to their electric bill credit or a cash payment. In addition, customers will
receive $10 incentive for each of the completed quarterly online surveys. Total maximum compensation will be
$160 per customer for one year, or $80,000. Customers will be contacted with utility bill inserts and through an
educational outreach campaign. The baseline control group will receive a $10 incentive for each of two surveys
completed, one at the onset and one at the completion of the project, for a total maximum compensation of
$2,000.
1.6 PERSISTENCE OF ASSETS
The City intends to continue the use of DR assets following the completion of this pilot project. The City
anticipates expanding this project to include all willing customers as it strives to minimize any peak demand
exceeding its anticipated Contract Demand Quantity (CDQ), to better match BPA's load shape, and to minimize
its use of BPA's capacity constrained transmission system.
2.0 PROPOSED TECHNOLOGY
The City plans to issue an AMI System request for Proposals (RFP) in May 2010 to contract with a vendor for the
procurement and installation of a turnkey AMI system for its electric and water utilities. The AMI vendor will also
provide and install the DR equipment proposed for this pilot project.
The City is planning to use the following technologies.
Water Heating electric water heating elements are cycled or turned off during peak curtailment periods by
the City's electric utility SCADA system. Water heater curtailments are more effective and align well with the
morning peak in water heater consumption. Also, water heater use is similar year round and does not respond
dramatically to outside temperature. Therefore, savings are consistent throughout the year.
Home Area Network (HAN) control of the customer's electric heating system (forced air electric furnace or
heat pump) in combination with the water heating controls.
Utility Controlled Home Heating cycling or setbacks controlled via a central thermostat capable of
communicating with the City's electric utility SCADA system. The 2 -way communications gives feedback
from on -site AMI meters.
Customer Controlled Home Heating customer controlled switches are installed to control the heating
units or heating equipment circuits. In -home displays will alert customers to periods of peak demand and
customers will have the option to comply with the curtailment.
Electric Thermal Storage (ETS) although is it not a direct load control measure, ETS units have the potential
to reduce peak demand and limit heavy load hour energy use. Thermal storage systems heat enclosed
ceramic bricks to as high as 1,650° Celsius during off -peak hours and slowly release the heat as needed
during the on -peak period. While thermal storage has little or no energy conservation benefits, it has the
Cooperative Agreement No. 48475 Page 16
potential to shift almost the entire heating load to off -peak hours. If a unit is working exactly as installed, 100%
of the heating Toad can be curtailed during morning and evening winter peak. In practice, overrides and
minimal on -peak usage make up to a 90% peak reduction possible.
3.0 EXPECTED IMPACT TO SYSTEM CAPACITY
For the proposed pilot project outlined in the Tasks in Section 5, we expect to achieve an overall peak demand
reduction of 387 kW /month as shown in Table 3 -1. If only the water heater DR units are deployed at all of the
City's 8,900 residential customers, the potential peak demand savings is 6.23 MW /month. Because the City does
not have access to natural gas, it is plausible that this project could be expanded to include nearly all residential
customers.
able
emand=Reduction
Peak Demand Reduction
(kW /month)
Water Heater Only I 210
Water Heater HAN (Utility Controlled) I 66
Water Heater HAN (Customer Controlled) I 56
Water Heater Thermal Storage I 55
TOTAL 387
4.0 READINESS
The City is in the process of issuing the AMI system RFP. The selection process includes an initial review of the
responding vendors and submittal of the preferred vendor selection to the Utility Advisory Committee (UAC). The
UAC reviews all major projects and issues affecting the City's utilities and makes recommendations to the City
Council. The UAC is composed of three City Council members, a representative from the industrial rate class and
a representative from the residential /commercial rate class. The UAC meets monthly and the meetings are open
to the public Examples of issues addressed by the UAC include utility rate adjustments, capital construction
project prioritization and utility policy and procedure changes.
The City Council has approved funding the budget for the AMI system. The City intends to issue the vendor
contract by summer 2010. The selected vendor will be required to install a "Phase 1" of the AMI system for the
electric utility in conjunction with the pilot project DR equipment by October 1, 2010, which will consist of the 600
residential customers in support of the DR pilot project. The complete balance of the AMI system will be
scheduled for completion in the spring of 2011; however, this will not impact the DR pilot project.
Since 2009, the City has had the DR pilot project in its Capital Facility Plan to be developed in conjunction with
the AMI system. This proposal to the BPA for the Residential Integrated
Automated Metering Infrastructure Demand Response Pilot Project therefore includes the City's cost -share as
delineated in the budget. Further, the City has staff available for the administration and execution of the DR pilot
project as outlined in this proposal.
5.0 TASKS
The purpose of the proposed DR pilot project is to manage the City's NCP demand. The following tasks
accomplish this goal on a pilot scale that can easily be expanded to the City's entire residential rate class.
4 SEE http /www steffes com/off- peak- heatmg/ets.html
Cooperative Agreement No. 48475 Page 17
5.1 TASK 1— ADMINISTRATION
The City will provide the overall coordination of the DR pilot project. The City will coordinate all vendor installation
schedules with its electric utility customers.
The City will administer the day to day tasks, including the following:
Prepare and distribute educational materials
Manage web tool to interact with participants
Communicate with participants
Prepare and collect surveys from participants
Compile survey results
Collect and compile metering data for evaluation task
5.2 TASK 2— RECRUITMENT /INCENTIVES
5.3 TASK 3— DEMAND RESPONSE EQUIPMENT TESTING
For this task, the City will contact interested residential customers to determine eligibility to participate in the DR
pilot project. The City will use utility bill inserts and advertisements to generate customer interest in this project.
The City will select 600 participants on a voluntary basis while meeting the following criteria:
Single family homes
All electric space heat and water heating
Water heater age less than 10 years old
Electric heating system age less than 10 years old
Internet access to complete online survey
Exclude homes requiring uninterruptable power (e.g medical equipment)
Other criteria mutually agreed upon by BPA and the City
The City will encourage residential customers to participate in the pilot project by offering them an incentive, either
a billing credit or a cash payment. It is anticipated a $10 /month incentive for participation in the project and an
additional $10 incentive for each completed survey response is needed to gain adequate customer interest. This
will total $160 /participant or a maximum compensation of $80,000. The baseline control group will receive a $10
incentive for completing two surveys, one each at the onset and completion of the pilot project, for a maximum
compensation of $2,000.
Under this task, a total of 500 of the 8,900 City residential electric customers will be selected to receive a
separate water heater DR control unit to be installed at the same time as the AMI metering equipment. Of these
500 customers, 400 will only receive a water heater DR control unit and 100 will receive additional equipment to
test home heating DR techniques.
A baseline control group will consist of 100 customers that do not receive DR equipment, but do receive a new
"smart" meter. In order to eliminate self selection bias, an equipment control group will be selected out of the 500
participants. The equipment control group's participants will still receive the DR equipment and will therefore not
know they are in the control group. These participants will respond to the surveys and data will be collected in the
same manner as the other DR equipment participants. Additional DR equipment that can be used to control
home heating, in addition to the water heating DR controls, will be installed in 100 participant homes, as shown in
Table 5 -1.
Cooperative Agreement No. 48475 Page 18
Baseline Control Group
(no DR eauipment)
Water Heater Only Group
Water Heater HAN Group (Utility
Controlled)
Water Heater HAN Group
(Customer Controlled)
Water Heater Thermal Storage
Group
TOTAL
Participants in Control
Group
(0 hours /day impact)
100 100
30
Number of
Participants
400
90 15
0
5.5 TASK 5— ECONOMIC EVALUATION
10 0
600 1 145
Participants in Critical Peak
Hour Group
(1 hour /day impact)
0
370
85
0 0
465
Data will be collected over a full year beginning October 1, 2010 and ending September 30, 2011.
10
5.4 TASK 4— DISPATCHABLE DEMAND RESPONSE
The focus of this task is to test the methodology for the BPA dispatching DR and prove the City's assets could be
used as a large -scale DR resource during the BPA's critical peak periods. This task will test the ability for BPA to
remotely control the City's water heating load during its critical peak period peak for the generation or
transmission systems.
The City could also set up a communication protocol through its SCADA system to allow BPA to remotely control
the City's distribution system voltage through its Conservation Voltage Reduction (CVR) project, impacting both
commercial and residential customers. Investigations by the City show that a 2.5% -3.75% reduction in voltage
could result in a 1.31 -1.5% reduction in demand. This could potentially contribute another 2.0 -2.5 MW of load
reduction during a critical peak period. This process could be expanded in the future to allow the BPA to dispatch
the 5.8 MW of stand -by generation that the City owns and operates. The two DR resources could easily be
considered dispatachable resources given an appropriate economic incentive from the BPA.
The economic evaluation will look at the cost effectiveness of DR from four perspectives; (1) BPA's perspective,
(2) the City's perspective, (3) the customer's perspective, and (4) the total resource cost (TRC) perspective.
From BPA's perspective, the analysis will look at avoided transmission facilities upgrades, generation and
transmission peak demand savings, functionality of dispatchable DR, and extrapolations to large- scale, system-
wide benefits.
From the City's perspective, the analysis will account for avoided NCP generation demand charges and
coincident peak demand transmission charges, functionality of large -scale cooperative dispatchable DR, avoided
distribution facilities upgrades, customer relations and an opportunity to evaluate the cost effectiveness of the DR
pilot project.
From the customer's perspective the analysis will include reductions to their utility bills due to the wholesale
power supply cost savings, pilot project incentives and equipment costs.
The total resource cost (TRC) test will also be applied to show whether or not this application is beneficial to the
region as a whole.
Cooperative Agreement No. 48475 Page 19
5.6 TASK 6— CUSTOMER ACCEPTANCE EVALUATION
This task includes the review of customer acceptance based on the survey results. Survey results for the 400
participants with operating DR units will be compared against those 100 participants in the equipment control
groups to minimize any self selection bias. The City will look at seasonal bias toward the DR units. For example,
the home heating curtailment will likely be more noticeable during the colder winter months.
The survey will also address customer feedback on the incentives required to participate in a DR project. Each
customer with DR equipment will receive a maximum of $160 for participating in this pilot project for one year.
The customer evaluation will look at the project dropout rate and consumer responses to questions on the
project's incentives.
6.0 PROJECT TIMELINE
't tub.M
The project timeline is outlined on a quarterly basis in Table 6 -1 according to BPA's fiscal calendar. The timeline
will be further refined during the planning and design phase after award execution.
Planning and Design
Customer Recruitment
Marketing Education
Installation
Testing /Operation
Evaluation of Results
FY 2010
7.0 MEASUREMENT AND VERIFICATION
FY 2011
FY 2012
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
The DR pilot project will be evaluated by calculating the baseline consumption (kW) for the period of interest and
compared to the two control groups. The baseline control group of 100 participants will have a "smart" meter and
no DR equipment installed. For the formal evaluation of the technical and economic merits of DR, a double blind
study will occur where two volunteer groups will be formed. The first group, the participant group, will consist of
300 volunteers who will have their appliances remotely cycled by the utility. The second group, the equipment
control group, will be 100 volunteers that do not have their appliances cycled by the City. Participants will not
know which group they belong to.
The actual consumption data will consist of kW consumed by customers in the participant group. The baseline
consumption will be calculated using a forecast of average kW consumption using customers from the baseline
control group. The forecasting model will estimate average customer use and apply the average use to the
number of customers in the participant group Independent vanables will be included to describe average
customer use in the equipment control group. Possible variables are: heating degree days, appliance saturations,
or monthly variables. Once the forecast model is developed, characteristics of the equipment control group
(appliance saturations, home size, heating system type, etc) are used to estimate average use for the customers
in the participant group. Average use is multiplied by the number of customers in the participant group to produce
Cooperative Agreement No. 48475 Page 20
average baseline consumption. The result is a baseline consumption estimate adjusted for the characteristics of
the participant group. Weather variables will be included to normalize consumption data when forecasting future
savings. Actual savings will be based on observed weather. It should also be noted that weather variables would
not change across the participant and equipment control groups since both groups experience the same weather
during the period the pilot project is being conducted
8.0 DELIVERABLES
The City will provide BPA with a refined plan and pilot project design within 30 days following the project's award
execution. This plan will contain more detailed milestones and a work schedule. However, Table 8 -1 provides a
preliminary look at the City's deliverables for the pilot project. The City intends to operate the DR pilot project for
the remainder of Fiscal Year 2011 and complete the evaluation of the results within 90 days following the pilot
project data collection period.
rs nr'4
LIVERABLE
Milestones
Refined Plan Design
Status Reports
Description of Pilot Test Events
Testing Begins
Testing Ends
Economic Results
Customer Acceptance Results
9.0 CHALLENGES
Completion (Days after Award Execution)
30 days
Monthly (30, 60, 90, etc)
60 days
180 days
540 days
720 days
720 days
The City is currently in the process of securing a vendor to install an AMI system and will request that the vendor
also supply and install the DR equipment outlined in this proposal if the City is selected by the pilot project. The
timing of the AMI system installation integrating it with the proposed DR pilot project proposal is a challenge;
however, the City is in a unique position to be able to complete the installation of the AMI system at the same time
as the DR equipment. This presents the opportunity to demonstrate the deployment of a DR project with least
possible cost.
10.0 KEY PERSONNEL
The project team is composed of the City of Port Angeles, EES Consulting Inc., and a vendor to be determined
during the course of the City's AMI system RFP. The City will function as the prime organization with support of a
consultant (EES Consulting, Inc. or other consulting firm) and an AMI /DR vendor. Figure 10 -1 shows the
proposed project team organization as explained above. Larry Dunbar will be the City's project manager for this
effort, and Phil Lusk will serve as the principal investigator for the City with the BPA. All team members have more
than 25 years of professional experience in the energy industry. The Director of Public Works and Utilities, Glenn
A. Cutler, P.E., will serve as the overall project director of this effort. Specific qualifications from each team
member organization and staff follows.
Cooperative Agreement No. 48475 Page 21
10.1 THE CITY OF PORT ANGELES
EES Consulting. Inc.
Kevin Smlt
Figure 10 -1
Proposed Project Team
Organization Chart
City of Port Angeles
Larry Dunbar. Protect Manager
Philip Lusk. Principal Investigator
Vendor
(TBD)
The City is a non charter code city incorporated in 1890. The City encompasses an area of approximately 10.7
square miles in northwestern Clallam County along State Highway 101 on the northern shore of Washington's
Olympic Peninsula. The City had an estimated population of 19,170 in 2008.
The City's electric utility serves around 10,765 industrial, commercial and residential customers using over nine
miles of transmission, 103 miles of overhead distribution and over 40 miles of underground distribution with seven
substations.
The City purchases its bulk power from the BPA and also operates the 465 -kW Morse Creek hydroelectric facility.
The BPA maintains a 69 -kV substation in Port Angeles and all of the power to the City is delivered over BPA's
transmission system and through their substation.
Capacity on the City's system is directed through two 69 -kV sub transmission lines that form an 8.8 mile loop
around the City, to seven 69/12.47 -kV substations down to a total of 24, 12 47 -kV sub distribution feeders to its
customer portfolio. The highest coincident peak demand that the City had in 2008 was 108.6 -MW and its highest
NCP was 144.9 -MW. The City averaged 83.5 -aMW in 2008.
The following City employees will perform the work associated with this project.
Glenn A. Cutler, P.E., Public Works and Utilities Director
Glenn A. Cutler is a registered professional engineer in Washington and Georgia with 30 years of experience in
managing public works and utility functions for the United States Navy and the City of Port Angeles. He has been
the Director of Public Works and Utilities for the City since June 1999. He has earned a Bachelor of Science in
Civil Engineering from Newark College of Engineering in Newark, New Jersey and a Master of Science in Civil
Engineering from the Georgia Institute of Technology in Atlanta, GA. Mr. Cutler is responsible for managing the
City's utility systems (electric, water, waste water, storm water, and solid waste collection and disposal), project
management and design, road and street maintenance and improvements and energy programs. Mr. Cutler has
been recognized for his outstanding management achievements with six personal decorations while serving on
active duty with the United States Navy as a Civil Engineer Corps Officer achieving the rank of Captain (0-6). He
has also been recognized for special achievement by the American Public Works Association for facility
construction and the Secretary of Navy for energy conservation programs.
Larry Dunbar, Deputy Director of Power Systems, City of Port Angeles
Mr. Dunbar has 28 years of experience working for electric, water, wastewater and solid waste utilities including
the Snohomish County Public Utility District No. 1, City of Richland, and the City of Port Angeles. Larry has a
Bachelor's degree in Business Administration and technical degrees in Energy Management and Industrial
Refrigeration. He is an active member of the Association of Energy Engineers and the National Association of
Cooperative Agreement No. 48475 Page 22
Telecommunications Officers. Mr. Dunbar was the advanced metering infrastructure project manager for the City
of Richland, which replaced its remote electric meters and basement -set water meters with meters capable of
wireless communications. The project management duties included oversight of a staff team, preparation of a
request for proposals, evaluation of proposals, negotiation of an agreement with the successful vendor, and
oversight of construction and acceptance testing. As the fiber optic project manager for the Cities of Richland and
Port Angeles, Dunbar developed municipal area networks providing advanced telecommunications services and
oversaw the design and installation of local area networks within numerous utility and municipal facilities.
Phil Lusk, Power Resources Manager, City of Port Angeles
Among other items, Phil Lusk manages the conservation program and assists with other projects relative to rate
structures, power resources, and power management activities. Prior to his coming to Port Angeles in 2008, he
worked as a consultant for a range of public and private clients where his duties included business case and plan
development, scenario analysis for various"fnancial"sfategies; trending analysis, capital investment analysis, and
due diligence. Lusk has a Master of Arts in Economics from the University of South Carolina and a Bachelor of
Arts in Energy and Environment from the University of North Carolina at Chapel Hill.
Terry Dahlquist, P.E., Electrical Engineering Manager, City of Port Angeles
Terry Dahlquist has a Bachelor's degree in Electrical Engineering with 39 years of experience in the design of
medium voltage power distribution systems. He started with Public Service Company of Colorado designing
overhead and underground distribution in the metropolitan Denver area, and became the lead engineer in charge
of the network system serving downtown Denver. Subsequently, he worked with several consulting firms on utility
and primary metered military and industrial systems throughout the Rocky Mountains. He is a licensed
professional engineer in ten states and has been an expert witness in several court cases relating to utilities. He
has been with the City of Port Angeles since 2006.
Bob Williams, Electric Services Foreman, City of Port Angeles
Bob Williams has 35 years experience with electric utilities including City of Port Angeles, Snohomish County
PUD, Clallam County PUD and Lee County Electric Co -op (Ft. Myers Florida). Positions include Substation and
Meter Supervisor, Relay Technician, Wireman, Senior Meterman, and Meterman. Mr. Williams installed,
configured and maintained the first AMR system at the Clallam County PUD. Responsibilities at Snohomish
included configuration, operation and maintenance of a large data acquisition system. This system included
substation interval recording meters, large customer interval recording meters, various communication
methodologies and data management software (i.e., MV90). At the City of Port Angeles, Mr. Williams installed
and configured a small AMI pilot project in downtown Port Angeles. He also supervised and participated in the
installation of a SCADA system providing control to seven city-owned substations. Job responsibilities also
include all metering, substation control, and electric system dispatcher. Bob also had conducted seminars for
Northwest Public Power Association, Northwest Electric Meter School, and has provided training for the City's
apprentices.
Richard G. Hostetler, Customer Service Manager, City of Port Angeles
Richard Hostetler has been employed with the City of Port Angeles for more than 28 years. He is the employee
most familiar with the City's utility billing software, and associated policy and procedures. Richard is familiar with
all City functions as a whole because of his 28 years experience and is quite familiar with all of the City's
neighborhoods and streets. Mr. Hostetler played a key role when meter reading transformed from paper to
handheld computers. He also was the main resource related to utility billing when the City installed its current
integrated finance system software.
10.2 EES CONSULTING
EES Consulting is a multidisciplinary management consulting and registered professional engineering firm that
provides a broad array of services to clients involved in electnc, water, natural gas, wastewater,
telecommunications, and other energy and natural resource related businesses. EES Consulting has assisted
clients in meeting the challenges in evolving competitive, regulatory and technical environments. Our broad base
Cooperative Agreement No. 48475 Page 23
of clients includes public and private utilities, regulators, trade associations and large end users located
throughout North America. EES Consulting has a proven track record of success in arenas where the results of a
particular evaluation or analysis may have far reaching effects on the viability of an organization or the local
community.
For this project, EES Consulting proposes that project management be performed by Kevin Smit with day -to -day
analytical tasks performed by Steve Andersen, Kelly Tarp and Amber Nyquist and quality control and oversight
provided by Gary Saleba and Anne Falcon. If necessary, the expertise of other staff members can be drawn on
for specific technical assistance. The following summarizes qualifications of EES Consulting personnel.
Resumes of all key EES Consulting project team members are attached.
Gary Saleba, President
Gary Saleba is President of EES Consulting, Inc. His areas of specialty include overall quality control for all of
EES Consulting's finance and engineering projects. Mr. Saleba has extensive experience in the areas of utility
rates and financial planning, management audits, marketing and consumer research, utility load research,
forecasting, integrated resource planning, cost benefit analyses and overall strategic planning. Mr. Saleba has
also served on numerous energy and natural resource related trade associations. He has taught numerous
technical seminars for the American Public Power Association, served as Chairman of American Water Works
Association's Financial Management Committee and Management Division, and is also serving his second
appointment to the board of directors for the Northwest Public Power Association.
Anne Falcon, Managing Director of Economics and Rates
Anne Falcon's pnmary responsibility with EES Consulting includes providing project management and technical
support for all types of economic studies. Ms. Falcon has managed projects concerning cost of service and rate
analyses, financial planning and regulatory proceedings for electric, natural gas, water and wastewater utilities.
Her area of expertise includes restructuring, strategic planning, forecasting, unbundled cost -of- service studies,
optimization research and specialized statistical studies. At EES Consulting, Inc., Ms. Falcon has been involved
in all aspects of the integrated resource planning process, from the initial identification of demand and supply -side
resources to the final ranking of resource portfolios. She has developed numerous decision models for U.S. and
Canadian utilities and she has performed resource evaluations by applying social costing principles and risk
analysis.
Steve Andersen, Manager of Project Evaluations
Mr. Andersen is skilled in evaluating power supply proposals and has done so for many utilities in the region. He
has calculated the potential savings in total power supply costs offered by competing suppliers. With his
background in power engineering, he is able to assess the technical barriers to potential savings in today's
changing electric industry Mr. Andersen has performed integrated resources plans for both large and small
utilities and has performed resource feasibility studies for both utility and industrial clients. He has also performed
cost of service analyses for many utilities. This analysis includes developing rates for residential, commercial and
large industrial customer classes He has also audited the power supply costs of large industrial corporations and
suggested options for reducing their overall costs.
Kevin Smit, Senior Project Manager
Kevin Smit is a Senior Project Manager with over 19 years of technical and management experience, primarily in
the energy and utility industry. His current responsibilities include conservation /DSM potential assessments,
utility conservation program evaluations, technical and regulatory analyses for electric and water utilities, and
resource planning and acquisition. Mr. Smit is a member of the Pacific Northwest Regional Technical Forum
which provides the Northwest Power Planning Council and the BPA with development and technical review of
conservation measures for the region. Mr. Smit has experience with the Council's methodology and models for
estimating cost effective conservation resources.
Cooperative Agreement No. 48475 Page 24
Kelly Tarp, Project Manager
Kelly Tarp specializes in the areas of project management, cost of service, rate analysis and financial studies.
Ms. Tarp has more than nine years experience as a consultant in the energy industry, completing a variety of
technical assessments for electric and gas utilities, government agencies, and supporting energy organizations
with a focus on distributed generation and renewable energy. In addition, Ms. Tarp has performed a variety of
financial studies, including cost of service and rate analyses for electric, water, and wastewater utilities; valuation
studies; and financial analyses.
Amber Nyquist, Analyst
Amber Nyquist provides analytical expertise for EES Consulting Inc. in support of economic and financial studies.
Ms. Nyquist's background includes research in electric utilities and rates and also intensive analytical work and
forecasting in various fields. Ms. Nyquist assi'st's iii` Integr'a'ted Resource Planning for small and large utilities.
Specifically she analyzes and models conservation and other demand side management resources. In addition to
resource planning, she uses her background in econometrics and data analysis to collect quality data and
develop load forecasts. Also, she utilizes her research skills to amass current utility information, support survey
projects, and to prepare presentation and reference material.
10.3 VENDOR (TBD)
The City plans to issue an AMI system RFP on May 5, 2010. The RFP requests pricing for the proposed DR
equipment and its installation for the Residential Integrated Automated Metering Infrastructure Demand Response
Pilot Project. If the City's pilot project is funded by the BPA, the selected vendor will provide and install the
necessary DR equipment on the time schedule outlined in this proposal.
Cooperative Agreement No. 48475 Page 25
UNIT 3 BUDGET
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Cooperative Agreement No. 48475 Page 26
Residential Integrated
Automated Metering Infrastructure
Demand Response
Pilot Project
SUBMITTED BY:
CITY OF PORT ANGELES, WASHINGTON
PO A
If
I l lIllIlr}
A SUBMITTED TO:
U.S. DEPARTMENT OF ENERGY
BONNEVILLE POWER ADMINISTRATION
FUNDING OPPORTUNITY ANNOUNCEMENT NUMBER: 1530
APRIL 19, 2010
City of Port Angeles April 19, 2010
TABLE OF CONTENTS
1. PROJECT DESCRIPTION 1
1 1 General Description 1
1 2 Project Rationale 2
1 3 Goals and Objectives 2
1 4 Consumer Impact 3
15 Recruitment .3
1 6 Persistence of Assets 3
2. PROPOSED TECHNOLOGY 3
3. EXPECTED IMPACT TO SYSTEM CAPACITY 4
4. READINESS 4
5. TASKS 5
51 Task 1-Administration 5
5 2 Task 2— Recruitment /Incentives 5
5 3 Task 3— Demand Response Equipment Testing 6
5 4 Task 4— Dispatchable Demand Response 6
5 5 Task 5— Economic Evaluation 7
5 6 Task 6— Customer Acceptance Evaluation 7
6. PROJECT TIMELINE 7
7. MEASUREMENT AND VERIFICATION 8
8. DELIVERABLES 8
9. CHALLENGES 9
10. KEY PERSONNEL 9
101 The City of Port Angeles 9
10 2 EES Consulting 11
10 3 Vendor (TBD) 13
11. BUDGET 13
Attachment A— Resumes
Attachment B— Proposed Budget
Attachment C— Budget Justification Narrative
Attachment D— Representations and Certifications
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 i
City of Port Angeles Apri119, 2010
LIST OF TABLES
Table No. Title Pate No.
1 -1 Equipment Testing Matrix 1
3 -1 Peak Demand Reduction 4
5 -1 Equipment Testing Matrix 6
6 -1 Project Timeline 7
8 -1 Deliverables 8
Figu No.
LIST OF FIGURES
Title Passe No.
10 -1 Proposed Project Team Organization Chart 9
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 ii
City of Port Angeles
1. PROJECT DESCRIPTION
1 1 General Description
This proposal is submitted in response to the Funding Opportunity Announcement No. 1530 issued by the
Bonneville Power Administration (BPA) for Residential Demand Response (DR) Pilot Projects. The City
of Port Angeles (City) is actively involved in upgrading its electric utility facilities to an advanced
metering infrastructure (AMI) system with smart meters capable of incorporating rate designs to mimic
BPA's forthcoming wholesale power Tiered Rate Methodology (TRM). If this project is selected, for
funding by BPA, the City will purchase and install demand response equipment, to include 500 residential
water heating DR controls, 90 in -home displays with controllable home area network capabilities, and 10
thermal storage devices for home heating. These units will be deployed on a voluntary basis to customers
meeting specific prerequisites according to the equipment testing matrix in Table 1 -1 below.
Baseline Control Group
(no DR equipment)
1 Water Heater Only Group
Water Heater HAN Group
(Utility Controlled)
Water Heater HAN Group
(Customer Controlled)
Water Heater Thermal Storage
Group
1 TOTAL
1
Number of
Participants
Taber,1
uipment ;Testing=Matrtx
Participants in
Control Group
(0 hours /day impact)
100 100
400 1 100 1
45 15
45 15
Participants in Critical Peak
Hour Group
(1 hour /day impact)
0
300
30
30
10 0 10
1 600 1 230 1 370
April 19, 2010
The equipment identified in Table 1 -1 is designed to achieve real demand savings results, eliminating any
self selection bias. In addition, for the Home Area Network (HAN), the results will be able to distinguish
between demand savings due to the in -home display showing a critical peak period' (with the customer
responding by shutting down their home heating system) versus general overall demand savings due only
to the physical reminder of the in -home display. Other pilot projects from the region and across the
nation are reporting positive results for DR projects; however, it is not clear if these results are over-
stating the potential demand savings
Once the pilot DR equipment is operational, the City will collect qualitative and quantitative data for one
full calendar year. The pilot project will conclude with the submission of a report that, based on load and
survey data, will evaluate the cost effectiveness of DR and the City's electric utility customer's
acceptance of DR technologies.
Critical peak period is defined as the City's non coincident peak (NCP) that would exceed the Contract Demand Quantity allocated to the City
under BPA'S wholesale TRM
2 Faruqui, Ahmad, Sergici, Sanem and Shard', Ahmed, The Impact of Informational Feedback on Energy Consumption A Survey of the
Experimental Evidence (May 1, 2009) Available at SSRN http /ssm com/abstract= 1407701
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 1
City of Port Angeles April 19, 2010
1.2 Project Rationale
The City is located on the Olympic Peninsula in Washington State, an ideal location for DR technologies
because the peninsula is presently served by a capacity- constrained, single -feed radial transmission
system. The area has experienced significant population growth and it is projected that power
transmission capacity in the region may be inadequate to supply demand during extremely cold winter
conditions The development of wide -scale DR options have the potential to benefit the City and the
region in avoiding costly transmission upgrades and lowering the City's wholesale power supply costs.
Transmission issues may be further exacerbated by the Elwha Ecosystem Restoration Project, which is
the second largest ecosystem restoration project in the history of the National Park Service after the
Everglades. This federal project will consist of removing two dams, the Glines and Elwha, and their
reservoirs from the Elwha River, which is expected to begin in 2011. Together, these two dams generate
over 28 megawatts of electricity and are the only significant sources for power generation on the Northern
Olympic Peninsula. Their removal may create further challenges for the City and the BPA for power
balancing between distant generation sources and peak demand loads.
In 2010 and 2011, the City will purchase and install a new Advanced Metering Infrastructure (AMI)
system to provide "smart" electric and water meters for nearly all of its utility customers, and will develop
a robust two -way communications system and integrate it with the City's existing fiber -optic network.
This project also includes an initial investigation of "Smart Grid" applications such as distribution utility
automation, peak load management, demand response, and home area networks. A key deliverable for the
proposed AMI system will be its functional flexibility to interface with the electric utility's Supervisory
Control and Data Acquisition (SCADA) System to control demand response applications and the City's
substation conservation voltage reduction application.
In preparing for the shift to the BPA's TRM for wholesale power purchases effective October 1, 2011, the
City is proceeding with a retail TRM study to independently assess and evaluate methods to equitably
allocate the BPA wholesale TRM power costs to customer rate classes (e.g., residential, commercial,
etc.), and to develop retail rate design options for each rate class based on the shift to the BPA wholesale
TRM power costs. The most advantageous BPA wholesale TRM power cost allocation methodology and
retail rate design option developed by this Retail TRM study will be incorporated into the AMI project
and used by the City next year as part of a Cost -of- Service Analysis to determine the City's actual retail
rates that will be effective on January 1, 2012. Among other items, the development of these retail rate
design options includes a DR rate for each rate class, which includes an evaluation of the wholesale TRM
NCP demand costs and potential retail customer incentives.
1.3 Goals and Objectives
In anticipation of the change to the TRM, the goal of this project is to demonstrate the ability to manage
the City's NCP demand in order to meet the following objectives:
Reduce the City's NCP demand above its assigned contract demand quantity (CDQ)
Reduce wholesale power supply costs for the City's residential customers
Minimize the perceived impact (e.g., inconvenience, discomfort) to the City's residential customers
(e.g., water heating and space comfort)
Maximize the City's residential customers' acceptance of DR
Delay or eliminate regional transmission system upgrades
3 Pacific Northwest National Laboratory, Pacific Northwest GridWise Testbed Demonstration Projects, Part 1 Olympic Peninsula Project, DOE
Contract Number DE- ACO5- 76RL01830, October 2007
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 2
City of Port Angeles April 19, 2010
1.4 Consumer Impact
A voluntary group of 600 residential participants will be enrolled in this pilot project. Each customer will
be selected to meet a minimum set of screening criteria and then placed in either a blind control group or
a participant group. Customers will be asked to complete quarterly online surveys to evaluate their
perceived impact of the DR technologies.
The maximum impact to the residential customer will be the curtailment of the_electric water heating and
electric space heating equipment during the City's NCP demand period. Based on other regional studies,
the City anticipates this will occur approximately 1— 2 times per week. The City is also proposing a
dispatchable DR component to the pilot project that would allow BPA to control its critical system peak
for either generation or transmission. However, for commercial use of any dispatchable DR resource, the
incentives to be offered by the BPA to the City would need to be defined and mutually agreed upon.
1 5 Recruitment
The City will request volunteers to participate in the residential DR pilot project. Volunteers will be
compensated with a $10 /month incentive, either a credit to their electric bill credit or a cash payment. In
addition, customers will receive $10 incentive for each of the completed quarterly online surveys. Total
maximum compensation will be $160 per customer for one year, or $80,000. Customers will be
contacted with utility bill inserts and through an educational outreach campaign. The baseline control
group will receive a $10 incentive for each of two surveys completed, one at the onset and one at the
completion of the project, for a total maximum compensation of $2,000.
1.6 Persistence of Assets
The City intends to continue the use of DR assets following the completion of this pilot project. The City
anticipates expanding this project to include all willing customers as it strives to minimize any peak
demand exceeding its anticipated Contract Demand Quantity (CDQ), to better match BPA's load shape,
and to minimize its use of BPA's capacity constrained transmission system.
2. PROPOSED TECHNOLOGY
The City plans to issue an AMI System request for Proposals (RFP) in May 2010 to contract with a
vendor for the procurement and installation of a turnkey AMI system for its electric and water utilities.
The AMI vendor will also provide and install the DR equipment proposed for this pilot project.
The City is planning to use the following technologies:
Water Heating electric water heating elements are cycled or turned off during peak curtailment
periods by the City's electric utility SCADA system. Water heater curtailments are more effective and
align well with the morning peak in water heater consumption. Also, water heater use is similar year
round and does not respond dramatically to outside temperature. Therefore, savings are consistent
throughout the year.
Home Area Network (HAN) control of the customer's electric heating system (forced air electric
furnace or heat pump) in combination with the water heating controls.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 3
City of Port Angeles April 19, 2010
Utility Controlled Home Heating cycling or setbacks controlled via a central thermostat capable
of communicating with the City's electric utility SCADA system. The 2 -way communications
gives feedback from on -site AMI meters.
Customer Controlled Home Heating customer controlled switches are installed to control the
heating units or heating equipment circuits. In -home displays will alert customers to periods of
peak demand and customers will have the option to comply with the curtailment.
Electric Thermal Storage (ETS) although is it not a direct load control measure, ETS units have the
potential to reduce peak demand and limit heavy load hour energy use. Thernial storage systems heat
enclosed ceramic bricks to as high as 1,650° Celsius during off -peak hours and slowly release the
heat as needed during the on -peak period. While thermal storage has little or no energy conservation
benefits, it has the potential to shift almost the entire heating load to off -peak hours. If a unit is
working exactly as installed, 100% of the heating load can be curtailed during morning and evening
winter peak. In practice, overrides and minimal on -peak usage make up to a 90% peak reduction
possible.
3. EXPECTED IMPACT TO SYSTEM CAPACITY
For the proposed pilot project outlined in the Tasks in Section 5, we expect to achieve an overall peak
demand reduction of 387 kW /month as shown in Table 3 -1. If only the water heater DR units are
deployed at all of the City's 8,900 residential customers, the potential peak demand savings is 6.23
MW /month. Because the City does not have access to natural gas, it is plausible that this project could be
expanded to include nearly all residential customers.
1 Water Heater Only
1 Water Heater HAN (Utility Controlled)
1 Water Heater HAN (Customer Controlled)
Water Heater Thermal Storage
TOTAL
4. READINESS
Peak Demand Reduction
(kW /month)
210
66
56
55
387
SEE http /www steffes com/off peak- heatmg/ets html
The City is in the process of issuing the AMI system RFP. The selection process includes an initial
review of the responding vendors and submittal of the preferred vendor selection to the Utility Advisory
Committee (UAC). The UAC reviews all major projects and issues affecting the City's utilities and
makes recommendations to the City Council. The UAC is composed of three City Council members, a
representative from the industrial rate class and a representative from the residential /commercial rate
class. The UAC meets monthly and the meetings are open to the public. Examples of issues addressed by
the UAC include utility rate adjustments, capital construction project prioritization and utility policy and
procedure changes.
The City Council has approved funding the budget for the AMI system. The City intends to issue the
vendor contract by summer 2010. The selected vendor will be required to install a "Phase 1" of the AMI
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 4
City of Port Angeles April 19, 2010
system for the electric utility in conjunction with the pilot project DR equipment by October 1, 2010,
which will consist of the 600 residential customers in support of the DR pilot project. The complete
balance of the AMI system will be scheduled for completion in the spring of 2011; however, this will not
impact the DR pilot project.
Since 2009, the City has had the DR pilot project in its Capital Facility Plan to be developed in
conjunction with the AMI system. This proposal to the BPA for the Residential Integrated
Automated Metering Infrastructure Demand Response Pilot Project therefore includes the City's cost
share as delineated in the budget. Further, the City has staff available for the administration and
execution of the DR pilot project as outlined in this proposal.
5. TASKS
The purpose of the proposed DR pilot project is to manage the City's NCP demand. The following tasks
accomplish this goal on a pilot scale that can easily be expanded to the City's entire residential rate class.
5.1 Task 1-Administration
The City will provide the overall coordination of the DR pilot project. The City will coordinate all
vendor installation schedules with its electric utility customers.
The City will administer the day to day tasks, including the following:
Prepare and distribute educational materials
Manage web tool to interact with participants
Communicate with participants
Prepare and collect surveys from participants
Compile survey results
Collect and compile metering data for evaluation task
5 2 Task 2— Recruitment /Incentives
For this task, the City will contact interested residential customers to determine eligibility to participate in
the DR pilot project. The City will use utility bill inserts and advertisements to generate customer interest
in this project. The City will select 600 participants on a voluntary basis while meeting the following
criteria:
Single family homes
All electric space heat and water heating
Water heater age less than 10 years old
Electric heating system age less than 10 years old
Internet access to complete online survey
Exclude homes requiring uninterruptable power (e.g., medical equipment)
Other criteria mutually agreed upon by BPA and the City
The City will encourage residential customers to participate in the pilot project by offering them an
incentive, either a billing credit or a cash payment. It is anticipated a $10 /month incentive for
participation in the project and an additional $10 incentive for each completed survey response is needed
to gain adequate customer interest. This will total $160 /participant or a maximum compensation of
$80,000. The baseline control group will receive a $10 incentive for completing two surveys, one each at
the onset and completion of the pilot project, for a maximum compensation of $2,000.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 5
City of Port Angeles
5.3 Task 3— Demand Response Equipment Testing
Number of
Participants
April 19, 2010
Under this task, a total of 500 of the 8,900 City residential electric customers will be selected to receive a
separate water heater DR control unit to be installed at the same time as the AMI metering equipment. Of
these 500 customers, 400 will only receive a water heater DR control unit and 100 will receive additional
equipment to test home heating DR techniques.
A baseline control group will consist of 100 customers that do not receive DR equipment, but do receive a
new "smart" meter. In order to eliminate self selection bias, an equipment control group will be selected
out of the 500 participants. The equipment control group's participants will still receive the DR
equipment and will therefore not know they are in the control group. These participants will respond to
the surveys and data will be collected in the same manner as the other DR equipment participants.
Additional DR equipment that can be used to control home heating, in addition to the water heating DR
controls, will be installed in 100 participant homes, as shown in Table 5 -1.
ATable5„
uipment:Testing Iatrix
Participants in
Control Group
(0 hours /day impact)
Participants in Critical Peak
Hour Group
(1 hour /day impact)
Baseline Control Group 100 100
(no DR equipment)
1 Water Heater Only Group 400 1 100 1
Water Heater HAN Group 45 15
(Utility Controlled)
Water Heater HAN Group 45 15
(Customer Controlled)
Water Heater Thermal Storage 10 0 10
Group
1 TOTAL 1 600 1 230 I 370
0
300
30
30
Data will be collected over a full year beginning October 1, 2010 and ending September 30, 2011.
5 4 Task 4— Dispatchable Demand Response
The focus of this task is to test the methodology for the BPA dispatching DR and prove the City's assets
could be used as a large -scale DR resource during the BPA's critical peak periods. This task will test the
ability for BPA to remotely control the City's water heating load during its critical peak period peak for
the generation or transmission systems.
The City could also set up a communication protocol through its SCADA system to allow BPA to
remotely control the City's distribution system voltage through its Conservation Voltage Reduction
(CVR) project, impacting both commercial and residential customers. Investigations by the City show
that a 2.5 3.75% reduction in voltage could result in a 1.31 -1.5% reduction in demand. This could
potentially contribute another 2.0 -2.5 MW of load reduction during a critical peak period. This process
could be expanded in the future to allow the BPA to dispatch the 5.8 MW of stand -by generation that the
City owns and operates. The two DR resources could easily be considered dispatachable resources given
an appropriate economic incentive from the BPA.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 6
City of Port Angeles April 19, 2010
5.5 Task 5-Economic Evaluation
The economic evaluation will look at the cost effectiveness of DR from four perspectives; (1) BPA's
perspective, (2) the City's perspective, (3) the customer's perspective, and (4) the total resource cost
(TRC) perspective.
From BPA's perspective, the analysis will look at avoided transmission facilities upgrades, generation
and transmission peak demand savings, functionality of dispatchable DR, and extrapolations to large
scale, system -wide benefits.
From the City's perspective, the analysis will account for avoided NCP generation demand charges and
coincident peak demand transmission charges, functionality of large -scale cooperative dispatchable DR,
avoided distribution facilities upgrades, customer relations and an opportunity to evaluate the cost
effectiveness of the DR pilot project.
From the customer's perspective the analysis will include reductions to their utility bills due to the
wholesale power supply cost savings, pilot project incentives and equipment costs.
The total resource cost (TRC) test will also be applied to show whether or not this application is
beneficial to the region as a whole.
5 6 Task 6 Customer Acceptance Evaluation
This task includes the review of customer acceptance based on the survey results. Survey results for the
400 participants with operating DR units will be compared against those 100 participants in the
equipment control groups to minimize any self selection bias. The City will look at seasonal bias toward
the DR units. For example, the home heating curtailment will likely be more noticeable during the colder
winter months.
The survey will also address customer feedback on the incentives required to participate in a DR project.
Each customer with DR equipment will receive a maximum of $160 for participating in this pilot project
for one year. The customer evaluation will look at the project dropout rate and consumer responses to
questions on the project's incentives.
6. PROJECT TIMELINE
The project timeline is outlined on a quarterly basis in Table 6 -1 according to BPA's fiscal calendar. The
timeline will be further refined during the planning and design phase after award execution.
FY2010 1 FY2011 1 FY2012
3 Q I Q I Q2 I Q3 I Q4 Q1 1 Q2
Planning and Design 1 1 1 1 1
Customer Recruitment I I I I I
Marketing Education
Installation 1 1
Testing/Operation 1
Evaluation of Results
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530
7
City of Port Angeles April 19, 2010
7. MEASUREMENT AND VERIFICATION
The DR pilot project will be evaluated by calculating the baseline consumption (kW) for the period of
interest and compared to the two control groups. The baseline control group of 100 participants will have
a "smart" meter and no DR equipment installed. For the formal evaluation of the technical and economic
merits of DR, a double blind study will occur where two volunteer groups will be formed. The first
group, the participant group, will consist of 300 volunteers who will have their appliances remotely
cycled by the utility. The second group, the equipment control group, will be 100 volunteers that do not
have their appliances cycled by the City. Participants will not know which group they belong to.
The actual consumption data will consist of kW consumed by customers in the participant group. The
baseline consumption will be calculated using a forecast of average kW consumption using customers
from the baseline control group. The forecasting model will estimate average customer use and apply the
average use to the number of customers in the participant group. Independent variables will be included
to describe average customer use in the equipment control group. Possible variables are: heating degree
days, appliance saturations, or monthly variables. Once the forecast model is developed, characteristics
of the equipment control group (appliance saturations, home size, heating system type, etc) are used to
estimate average use for the customers in the participant group. Average use is multiplied by the number
of customers in the participant group to produce average baseline consumption. The result is a baseline
consumption estimate adjusted for the characteristics of the participant group. Weather variables will be
included to normalize consumption data when forecasting future savings. Actual savings will be based on
observed weather. It should also be noted that weather variables would not change across the participant
and equipment control groups since both groups experience the same weather during the period the pilot
project is being conducted.
8. DELIVERABLES
The City will provide BPA with a refined plan and pilot project design within 30 days following the
project's award execution. This plan will contain more detailed milestones and a work schedule.
However, Table 8 -1 provides a preliminary look at the City's deliverables for the pilot project. The City
intends to operate the DR pilot project for the remainder of Fiscal Year 2011 and complete the evaluation
of the results within 90 days following the pilot project data collection period.
Milestones
Refined Plan Design
Status Reports
Description of Pilot Test Events
Testing Begins
Testing Ends
Economic Results
Customer Acceptance Results
Completion (Days after Award Execution)
30 days
Monthly (30, 60, 90, etc)
60 days
180 days
540 days
720 days
720 days
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 8
City of Port Angeles April 19, 2010
9. CHALLENGES
The City is currently in the process of securing a vendor to install an AMI system and will request that the
vendor also supply and install the DR equipment outlined in this proposal if the City is selected by the
pilot project. The timing of the AMI system installation integrating it with the proposed DR pilot project
proposal is a challenge; however, the City is in a unique position to be able to complete the installation of
the AMI system at the same time as the DR equipment. This presents the opportunity to demonstrate the
deployment of a DR project with least possible cost.
10. KEY PERSONNEL
The project team is composed of the City of Port Angeles, EES Consulting Inc., and a vendor to be
determined during the course of the City's AMI system RFP. The City will function as the prime
organization with support of a consultant (EES Consulting, Inc. or other consulting firm) and an AMI/DR
vendor. Figure 10 -1 shows the proposed project team organization as explained above. Larry Dunbar will
be the City's project manager for this effort, and Phil Lusk will serve as the principal investigator for the
City with the BPA. All team members have more than 25 years of professional experience in the energy
industry. The Director of Public Works and Utilities, Glenn A. Cutler, P.E., will serve as the overall
project director of this effort. Specific qualifications from each team member organization and staff
follows.
10.1 The City of Port Angeles
Figure 10 -1
Proposed Project Team
Organization Chart
City of Port Angeles
Larry Dunbar. Project Manager
Philip Lusk. Principal Investigator
i
EES Consulting. Inc.
Kevin Smit
Vendor
(TBD)
The City is a non charter code city incorporated in 1890. The City encompasses an area of approximately
10.7 square miles in northwestern Clallam County along State Highway 101 on the northern shore of
Washington's Olympic Peninsula. The City had an estimated population of 19,170 in 2008.
The City's electric utility serves around 10,765 industrial, commercial and residential customers using
over nine miles of transmission, 103 miles of overhead distribution and over 40 miles of underground
distribution with seven substations.
The City purchases its bulk power from the BPA and also operates the 465 -kW Morse Creek
hydroelectric facility. The BPA maintains a 69 -kV substation in Port Angeles and all of the power to the
City is delivered over BPA's transmission system and through their substation.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 9
City of Port Angeles April 19, 2010
Capacity on the City's system is directed through two 69 -kV sub transmission lines that form an 8.8 mile
loop around the City, to seven 69/12.47 -kV substations down to a total of 24, 12.47 -kV sub distribution
feeders to its customer portfolio. The highest coincident peak demand that the City had in 2008 was
108.6 -MW and its highest NCP was 144.9 -MW. The City averaged 83.5 -aMW in 2008.
The following City employees will perform the work associated with this project.
Glenn A. Cutler, P.E., Public Works and Utilities Director
Glenn A. Cutler is a registered professional engineer in Washington and Georgia with 30 years of
experience in managing public works and utility functions for the United States Navy and the City of Port
Angeles. He has been the Director of Public Works and Utilities for the City since June 1999. He has
earned a Bachelor of Science in Civil Engineering from Newark College of Engineering in Newark, New
Jersey and a Master of Science in Civil Engineering from the Georgia Institute of Technology in Atlanta,
GA. Mr. Cutler is responsible for managing the City's utility systems (electric, water, waste water, storm
water, and solid waste collection and disposal), project management and design, road and street
maintenance and improvements and energy programs. Mr. Cutler has been recognized for his outstanding
management achievements with six personal decorations while serving on active duty with the United
States Navy as a Civil Engineer Corps Officer achieving the rank of Captain (0-6). He has also been
recognized for special achievement by the American Public Works Association for facility construction
and the Secretary of Navy for energy conservation programs.
Larry Dunbar, Deputy Director of Power Systems, City of Port Angeles
Mr. Dunbar has 28 years of experience working for electric, water, wastewater and solid waste utilities
including the Snohomish County Public Utility District No. 1, City of Richland, and the City of Port
Angeles. Larry has a Bachelor's degree in Business Administration and technical degrees in Energy
Management and Industrial Refrigeration. He is an active member of the Association of Energy
Engineers and the National Association of Telecommunications Officers. Mr. Dunbar was the advanced
metering infrastructure project manager for the City of Richland, which replaced its remote electric
meters and basement -set water meters with meters capable of wireless communications. The project
management duties included oversight of a staff team, preparation of a request for proposals, evaluation
of proposals, negotiation of an agreement with the successful vendor, and oversight of construction and
acceptance testing. As the fiber optic project manager for the Cities of Richland and Port Angeles,
Dunbar developed municipal area networks providing advanced telecommunications services and
oversaw the design and installation of local area networks within numerous utility and municipal
facilities.
Phil Lusk, Power Resources Manager, City of Port Angeles
Among other items, Phil Lusk manages the conservation program and assists with other projects relative
to rate structures, power resources, and power management activities. Prior to his coming to Port Angeles
in 2008, he worked as a consultant for a range of public and private clients where his duties included
business case and plan development, scenario analysis for various financial strategies, trending analysis,
capital investment analysis, and due diligence. Lusk has a Master of Arts in Economics from the
University of South Carolina and a Bachelor of Arts in Energy and Environment from the University of
North Carolina at Chapel Hill.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 10
City of Port Angeles Apnl19, 2010
Terry Dahlquist, P.E., Electrical Engineering Manager, City of Port Angeles
Terry Dahlquist has a Bachelor's degree in Electrical Engineering with 39 years of experience in the
design of medium voltage power distribution systems. He started with Public Service Company of
Colorado designing overhead and underground distribution in the metropolitan Denver area, and became
the lead engineer in charge of the network system serving downtown Denver. Subsequently, he worked
with several consulting firms on utility and primary metered military and industrial systems throughout
the Rocky Mountains. He is a licensed professional engineer in ten states and has been an expert witness
in several court cases relating to utilities. He has been with the City of Port Angeles since 2006.
Bob Williams, Electric Services Foreman, City of Port Angeles
Bob Williams has 35 years experience with electric utilities including City of Port Angeles, Snohomish
County PUD, Clallam County PUD and Lee County Electric Co -op (Ft. Myers Florida). Positions include
Substation and Meter Supervisor, Relay Technician, Wireman, Senior Meterman, and Meterman. Mr.
Williams installed, configured and maintained the first AMR system at the Clallam County PUD.
Responsibilities at Snohomish included configuration, operation and maintenance of a large data
acquisition system. This system included substation interval recording meters, large customer interval
recording meters, various communication methodologies and data management software (i.e., MV90). At
the City of Port Angeles, Mr. Williams installed and configured a small AMI pilot project in downtown
Port Angeles. He also supervised and participated in the installation of a SCADA system providing
control to seven city-owned substations. Job responsibilities also include all metering, substation control,
and electric system dispatcher. Bob also had conducted seminars for Northwest Public Power
Association, Northwest Electric Meter School, and has provided training for the City's apprentices.
Richard G. Hostetler, Customer Service Manager, City of Port Angeles
Richard Hostetler has been employed with the City of Port Angeles for more than 28 years. He is the
employee most familiar with the City's utility billing software, and associated policy and procedures.
Richard is familiar with all City functions as a whole because of his 28 years experience and is quite
familiar with all of the City's neighborhoods and streets. Mr. Hostetler played a key role when meter
reading transformed from paper to handheld computers. He also was the main resource related to utility
billing when the City installed its current integrated finance system software.
10.2 EES Consulting
EES Consulting is a multidisciplinary management consulting and registered professional engineering
firm that provides a broad array of services to clients involved in electric, water, natural gas, wastewater,
telecommunications, and other energy and natural resource related businesses. EES Consulting has
assisted clients in meeting the challenges in evolving competitive, regulatory and technical environments.
Our broad base of clients includes public and private utilities, regulators, trade associations and large end
users located throughout North America. EES Consulting has a proven track record of success in arenas
where the results of a particular evaluation or analysis may have far reaching effects on the viability of an
organization or the local community.
For this project, EES Consulting proposes that project management be performed by Kevin Smit with
day -to -day analytical tasks performed by Steve Andersen, Kelly Tarp and Amber Nyquist and quality
control and oversight provided by Gary Saleba and Anne Falcon. If necessary, the expertise of other staff
members can be drawn on for specific technical assistance. The following summarizes qualifications of
EES Consulting personnel. Resumes of all key EES Consulting project team members are attached.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 11
City of Port Angeles April 19,1010
Gary Saleba, President
Gary Saleba is President of EES Consulting, Inc. His areas of specialty include overall quality control for
all of EES Consulting's finance and engineering projects. Mr. Saleba has extensive experience in the
areas of utility rates and financial planning, management audits, marketing and consumer research, utility
load research, forecasting, integrated resource planning, cost benefit analyses and overall strategic
planning. Mr. Saleba has also served on numerous energy and natural resource related trade associations.
He has taught numerous technical seminars for the American Public Power Association, served as
Chairman of American Water Works Association's Financial Management Committee and Management
"Division, and is also serving his 'second appointment to the board of directors for the Northwest Public
Power Association.
Anne Falcon, Managing Director of Economics and Rates
Anne Falcon's primary responsibility with EES Consulting includes providing project management and
technical support for all types of economic studies. Ms. Falcon has managed projects concerning cost of
service and rate analyses, financial planning and regulatory proceedings for electric, natural gas, water
and wastewater utilities. Her area of expertise includes restructuring, strategic planning, forecasting,
unbundled cost -of- service studies, optimization research and specialized statistical studies. At EES
Consulting, Inc., Ms. Falcon has been involved in all aspects of the integrated resource planning process,
from the initial identification of demand and supply -side resources to the final ranking of resource
portfolios. She has developed numerous decision models for U.S. and Canadian utilities and she has
performed resource evaluations by applying social costing principles and risk analysis.
Steve Andersen, Manager of Project Evaluations
Mr. Andersen is skilled in evaluating power supply proposals and has done so for many utilities in the
region. He has calculated the potential savings in total power supply costs offered by competing
suppliers. With his background in power engineering, he is able to assess the technical barriers to
potential savings in today's changing electric industry. Mr. Andersen has performed integrated resources
plans for both large and small utilities and has performed resource feasibility studies for both utility and
industrial clients. He has also performed cost of service analyses for many utilities. This analysis
includes developing rates for residential, commercial and large industrial customer classes. He has also
audited the power supply costs of large industrial corporations and suggested options for reducing their
overall costs.
Kevin Smit, Senior Project Manager
Kevin Smit is a Senior Project Manager with over 19 years of technical and management experience,
primarily in the energy and utility industry. His current responsibilities include conservation/DSM
potential assessments, utility conservation program evaluations, technical and regulatory analyses for
electric and water utilities, and resource planning and acquisition. Mr. Smit is a member of the Pacific
Northwest Regional Technical Forum which provides the Northwest Power Planning Council and the
BPA with development and technical review of conservation measures for the region. Mr. Smit has
experience with the Council's methodology and models for estimating cost effective conservation
resources.
Kelly Tarp, Project Manager
Kelly Tarp specializes in the areas of project management, cost of service, rate analysis and financial
studies. Ms. Tarp has more than nine years experience as a consultant in the energy industry, completing
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 12
City of Port Angeles April 19, 2010
a variety of technical assessments for electric and gas utilities, government agencies, and supporting
energy organizations with a focus on distributed generation and renewable energy. In addition, Ms. Tarp
has performed a variety of financial studies, including cost of service and rate analyses for electric, water,
and wastewater utilities; valuation studies; and financial analyses.
Amber Nyquist, Analyst
Amber Nyquist provides analytical expertise for EES Consulting Inc. in support of economic and
financial studies. Ms. Nyquist's background includes research in electric utilities and rates and also
intensive analytical work and forecasting in various fields. Ms. Nyquist assists in Integrated Resource
Planning for small and large utilities. Specifically she analyzes and models conservation and other
demand side management resources. In addition to resource planning, she uses her background in
econometrics and data analysis to collect quality data and develop load forecasts. Also, she utilizes her
research skills to amass current utility information, support survey projects, and to prepare presentation
and reference material.
10.3 Vendor (TBD)
The City plans to issue an AMI system RFP on May 5, 2010. The RFP requests pricing for the proposed
DR equipment and its installation for the Residential Integrated Automated Metering Infrastructure
Demand Response Pilot Project. If the City's pilot project is funded by the BPA, the selected vendor will
provide and install the necessary DR equipment on the time schedule outlined in this proposal.
11. BUDGET
See Attachment B for the proposed budget and Attachment C for the budget justification narrative.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 13
City of Port Angeles April 19, 2010
ATTACHMENT A
RESUMES
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 14
City of Port Angeles April 19, 2010
Glenn A. Cutler, P.E.,
Public Works and Utilities Director
City of Port Angeles
Glenn A. Cutler is a registered professional engineer in Washington and Georgia with 30
years of experience in managing public works and utility functions for the United States Navy
and the City of Port Angeles. He has been the Director of Public Works and Utilities for the City
since June 1999. He has earned a Bachelor. of Science in Civil Engineering from Newark
College of Engineering in Newark, New Jersey and a Master of Science in Civil Engineering
from the Georgia Institute of Technology in Atlanta, GA.
Glenn is responsible for managing the City's utility systems (electric, water, waste water,
storm water, and solid waste collection and disposal), project management and design, road and
street maintenance and improvements and energy programs. Significant challenges for Glenn
and his staff include replacing the 8th Street Bridges, closure of the Port Angeles landfill and
transitioning to an export system, and design and construction of water mitigation facilities
associated with removal of the Elwha dams to protect the City's municipal and industrial water
supply.
Glenn has been recognized for his outstanding management achievements with six
personal decorations while serving on active duty with the United States Navy as a Civil
Engineer Corps Officer achieving the rank of Captain (0-6). He has also been recognized for
special achievement by the American Public Works Association for facility construction and the
Secretary of Navy for energy conservation programs.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 15
Ciry of Port Angeles April 19, 2010
CAREER
HISTORY:
LARRY D. DUNBAR
31 Edna Place
Sequim, WA 98382
(360) 683 -2659
1. CITY OF PORT ANGELES
Deputy Director of Power Systems, 2008 Present
Power Resources Manager, 2000 2008
2. CITY .OF .RICHLAND
Resource Management Manager, Cable Communications Manager, 1996 2000
Energy Resources Manager, 1991 —1996
Senior Energy Engineer, 1985 1991
Energy Engineer, 1982 —1985
3. SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO. 1
Energy Advisor (Edmonds Comm College Intern), 1981 —1982
Energy Conservation Specialist, 1981 —1982
MANAGEMENT EXPERIENCE:
17 years of progressively more responsible utility management experience
13 years of management experience at the division level
Washington State laws relating to Public Work, bidding, prevailing wage, RFQ, RFP
Municipal construction projects, design, plans and specifications, inspections
Power management, industrial billing, customer services, credit, billing and collection experience
Report writing, board and council presentations, staff laison, and public speaking
Oversee delivery of conservation programs and special projects
Public information, electrical safety, grants, and contracts management
Key accounts, strategic and business planning, goal setting, budgeting, load forecasting
PROJECT MANAGEMENT EXPERIENCE:
Fiber optic backbone, the "last mile and local area network construction project manager
Council chambers cablecast system construction project manager
Residential, commercial and industrial energy conservation construction project manager
Electric /water metering and meter reading system replacement project manager
Municipal telecommunications plan, ordinance and franchising project manager
Electric, cable television and telecommunications contract negotiations
Strategic planning project manager
End -use Toad research and forecasting (using advanced metering) project manager
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 16
City of Port Angeles April 19, 2010
Employment:
Education:
Richard G. Hostetler
Customer Services Manager
Department of Finance
City of Port Angeles
Initial hiring- date-as City of Port Angeles -Meter Reader• January 4, 1981
Customers Service Field Rep (Service Truck for electric and water utility) May 1987
Customer Service Leadworker- May 14, 2001
Customer Service Supervisor October 1, 2002
Customer Service Manager April 9, 2007
Attended numerous workshops, conferences, and other educational presentations related to
metering and AMR/AMI issues
Current responsibilities as Customer Service Manager:
Under general direction of the Finance Director, plans, directs and supervises the daily
work activity of the Customer Services Division, including meter readers, Customer
Service Representatives, and Utility Billing and Collections staff involved in field and
office collections.
Oversees staffing schedules to ensure proper coverage for meter reading, cashiering, and
customer service field/office activities.
Directs and supervises subordinate staff including Customer Services, Utility Billing,
Collections, and, meter readers.
Prepares and monitors meter reading routes for coverage and efficiency.
Develops policies and procedures for Customer Service activities.
Coordinates monthly collection activity to determine if collections and billing standards
are met; monitors budget billing accounts; monitors and coordinates credit and collection
of active utility accounts.
Researches and coordinates upgrades to the automated meter reading software system,
referred to as Automated Meter Reading System (AMRS).
Researches customer service programs to improve utility collections and customer
service programs and makes recommendations to the Department Head.
Prepares standardized correspondence and forms for utility billing and meter reading
inquires from the public.
Prepares performance evaluations for staff and makes recommendations to the
department head on hiring, promotions, and discipline decisions
Updates current office procedures for customer service and utility collections.
High School Diploma 3.5 Grade average
One year Penn State University 3.3 Grade average, Forestry Major with Science and Math
emphasis
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 17
City of Port Angeles Apri119, 2010
Bob Williams
Electric Services Foreman
Department of Public Works and Utilities
City of Port Angeles
Bob has 35 years experience with electric utilities including City of Port Angeles,
Snohomish County PUD, Clallam County PUD and Lee County Electric-Co -op (Ft. Myers
Florida). Positions include Substation and Meter Supervisor, Relay Technician, Wireman, Senior
Meterman and Meterman.
Bob installed, configured and maintained the first AMR system at the Clallam County
PUD. Responsibilities at Snohomish included configuration, operation and maintenance of a
large Data Acquisition System. This system included substation interval recording meters, large
customer interval recording meters, various communicationfs methodologies and Data
Management software (MV90).
At the City of Port Angeles, Bob installed and configured a small AMI pilot project in
downtown Port Angeles. He also supervised and participated in the installation of a SCADA
system providing control to seven city -owned substations. Job responsibilities also include all
metering, substation control, and electric system dispatcher. Bob also had conducted seminars
for Northwest Public Power Association, Northwest Electric Meter School, and has provided
training for the City's apprentices.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 18
City of Port Angeles April 19, 2010
Philip Donovan Lusk
Power Resources Manager
Public Works and Utilities Department
City of Port Angeles
60/2008 date, Current duties include preparing and updating complex financial analysis and rate studies
of the Water, Wastewater, Solid Waste and Electric Utility and managing and administering rate studies
prepared by consultants. Also assist with other projects relative to rate structures, power resources, and
power management activities. Manage the conservation program, which includes s energy conservation
planning, compliance with established energy conservation programs, budget preparation, and other
related activities.
04/1993 06/2008, Consultant who provided a range of technical and analytic support services for
selected clients. Specific duties included business case and plan development, scenario analysis for
various financial strategies, trending analysis, capital investment analysis, and due diligence.
06/1992 03/1993, NRBP Director, Coalition of Northeastern Governors Policy Research Center,
Washington, D.C. The Northeast Regional Biomass Program (NRBP) director had lead responsibility for
managing the activities of eleven states participating in a renewable energy development program funded
by the USDOE.
10/1987 05/1992, Commercial/Agricultural Program Manager, Energy Division, Department of
Commerce, Raleigh, North Carolina. Identified and implemented cost effective demonstration and
technology transfer projects to promote specific energy resources. Provided technical and economic
expertise related to energy efficiency and renewable energy resources.
07/1985 09/1987, Energy Administrator, Energy and Environment Division, Office of the Governor,
Columbia, South Carolina. Conducted advanced research and evaluation of the economic aspects of SC's
energy and energy- related issues. Provided constituency service and responded on Governor's behalf to
citizens and organizations on energy- related concerns.
10/1980 07/1985, Principal, Resource Development Associates, Columbia, South Carolina. Developed
a number of analytical models showing the links between energy and its economic and environmental
impacts.
01/1979 08/1980, Contract Employee. Worked under temporary subcontract for a number of
organizations, including: 1) ACT -79 Fair and Conference; 2) Citizen's Energy Project; 3) Energy
Research Institute; 4) North Carolina Energy Division; 5) Orange Chatham Community Action Agency,
and; 6) Volunteers in Service to America (VISTA).
Education
Energy Management Diploma, Virginia Polytechnic Institute State University, Blacksburg, VA (1992).
M.A. in Economics, University of South Carolina, Columbia, SC (1988).
B.A. in Energy and Environment, University of North Carolina, Chapel Hill, NC (1978).
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 19
City of Port Angeles April 19, 2010
Terry J. Dahlquist, P.E.
Electrical Engineering Manager
City of Port Angeles Department of Public Works and Utilities
Education:
Licensing:
Professional
Societies:
Employment
History:
Experience:
Relevant
Projects:
B.S. in Electrical Engineering
University of Denver, 1970
Registered Professional Engineer in Washington, Arizona, California,
Colorado, Idaho, Montana ;'Oregon; Sotith"Daktta, Utah; and Wyoming
Institute of Electrical and Electronic Engineers
Instrumentation Systems and Automation Society
City of Port Angeles Light Utility; 2006 Present
Morrison Maierle Engineers; Kalispell, MT; 1991 -2006
Brinkman Lenon Engineers; Kalispell, MT; 1988 -1991
TSP Engineers, Sheridan, WY; 1978 -1987
Public Service Co. of Colorado; 1970 -1977
Designed overhead and underground medium voltage distribution for 39 years,
initially with a large investor -owned utility in Colorado, and subsequently as a
consultant to utilities, military, and large commercial users. Additional functions
over the years have included industrial and commercial power and lighting
design, SCADA, generation control, and plant control systems.
SCADA for City of Port Angeles Light Utility
Fuel Cell Distributed Generation Demonstration Project,
Zoot Enterprises, Belgrade, MT
Fuel Cell Load Leveling Controls,
Fuel Cell Energy Inc., Danbury, CT
SCADA system for 150 mile water pipeline utilizing a combination of fiber optic
cable with licensed and spread- spectrum radios; Mni Wiconi Rural Water
Supply System, South Dakota
SCADA for water /wastewater systems in communities throughout Montana,
South Dakota, and Arizona
Small hydro generation control, Hungry Horse Ranger Station
U.S. Forest Service Region 1, Missoula, MT
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 20
GARY S. SALEBA
President
Gary Saleba is a principal and president/CEO of EES Consulting, Inc. His areas of
specialty include overall quality control for EES Consulting's projects as well as
development of corporate management, financial and strategic planning models.
Mr. Saleba has extensive experience in the areas of utility rates, financial
planning, management audits, professional development educational seminars,
marketing, consumer research, forecasting, integrated resource planning, cost
benefit analyses, overall strategic planning, and mergers and acquisitions.
Having worked as a utility employee, Mr. Saleba combines an extensive
background as both a utility industry expert and a management consultant. He is
able to draw upon this professional and educational experience to manage projects including
comprehensive water, wastewater, gas and electric cost of service studies, strategic planning, and
management critiques for clients throughout North America. His experience extends to alternative fuel
cost comparisons, econometric forecasting models, resource planning and reliability studies. Mr. Saleba
has participated in numerous generic utility proceedings, testified before over 200 regulatory bodies and
courts of law and coordinated over 400 financial planning, resource acquisition, and strategic planning
studies.
Mr. Saleba has also served on numerous energy and natural resource related trade associations. He has
served as Chairman of the American Water Works Association Financial Management Committee and
Management Division. He has also served on the board of directors for the Northwest Public Power
Association. He also served on the Board of Directors for ENERconnect, Inc., a bulk power aggregation
and procurement entity serving the municipal utilities in Ontario.
Through EES Consulting and as a utility employee, Mr. Saleba has provided expert testimony in a
number of subject areas including:
Cost of service
Wholesale and retail rate design
Avoided cost of power
General utility financing guidelines
Load forecasting
Retail wheeling
Automatic adjustment clauses
Wheeling rates
Supply contracts /negotiations
EDUCATION
M.B.A., Finance, Butler University, Indianapolis, Indiana
B.A., Economics and Mathematics, Franklin College, Franklin, Indiana
PROFESSIONAL ASSOCIATIONS
American Water Works Association
American Public Power Association
Northwest Public Power Association
Canadian Energy Association
Interclass load characteristics
Prudency issues
Resource acquisitions
Integrated resource planning
Efficient utility operations
Construction contract analysis
Return on equity
Mergers and acquisitions
EES
Consulting
4,
ANNE FALCON
Managing Director
Anne Falcon's primary responsibility with EES Consulting includes
providing project management and technical support for all types of
economic studies. Ms. Falcon has managed projects concerning cost of
service and rate analyses, financial planning and regulatory proceedings for
electric, natural gas, water and wastewater utilities. Her area of expertise
includes restructuring, strategic planning, forecasting, unbundled cost -of-
service studies, optimization research and specialized statistical studies.
Through her research and analysis of the current state of the industry, she
has assisted many California and Northwest clients in preparing for the
changes that are taking place. Ms. Falcon's work with California and
Northwest electric utilities has included developing unbundled rates,
average embedded and marginal cost -of- service studies, analysis of
stranded costs, CTC calculation, development of direct access programs, research on ISOs and power
markets, development of customer choice programs and conservation, market -based and green rate
designs. For her water and wastewater clients, Ms Falcon has assisted them in developing sound financial
long -term plans and determined rates sufficient to fund expenses and required capital programs.
On the regulatory front, Ms. Falcon has prepared evidence in several proceedings before public regulatory
bodies in the U.S. and Canada. She has been a board expert to the Ontario Energy Board and
Newfoundland and Labrador Utility Board in cost of service proceedings.
At EES Consulting, Inc. Ms. Falcon has been involved in all aspects of the integrated resource planning
process, from the initial identification of demand and supply -side resources to the final ranking of
resource portfolios. She has developed numerous decision models for U.S. and Canadian utilities and she
has performed resource evaluations by applying social costing principles and risk analysis.
Ms. Falcon applies her extensive economic and technical knowledge in the development of resource
related computer models for use by electric, gas, water, wastewater, and solid waste utilities. With a
master's degree in Operations Research, she has superior technical skills and is well suited to conduct
mathematical and statistical studies. Ms. Falcon has also provided training in the areas of forecasting and
operations research.
Her work at EES Consulting has also included the development of a multitude of econometric forecasts
for electric, gas and water utilities. She has developed disaggregate energy and demand forecasts using a
variety of forecasting and econometric tools.
EDUCATION
M.S., Operations Research, Stanford University
B.A., Economics, University of San Francisco, Summa Cum Laude
ASSOCIATIONS
Operations Research Society of America
EES
Consulting
STEVEN J. ANDERSEN
Manager of Project Evaluations
Steve Andersen, whose broad knowledge of the engineering field enables him to
handle most technical issues, provides economic and technical analyses for utility
and industrial clients of EES Consulting, Inc.
Mr. Andersen is skilled in evaluating power supply proposals and has done so for
many utilities in the region. He has calculated the potential savings in total power
supply costs offered by competing suppliers. With his background in power
engineering, he is able to assess the technical barriers to potential savings in
today's changing electric industry.
Mr. Andersen has been responsible for managing the interplay of multiple power supply contracts for a
major Northwest utility. He has monitored the hourly loads and power schedules of the utility and
recommended changes to optimize economically the utility's various resources. He has also negotiated
and implemented short and long -term power supply and transmission contracts on behalf of the utility.
Mr. Andersen has performed integrated resources plans for both large and small utilities. He has also
performed resource feasibility studies for both utility and industrial clients.
Mr. Andersen has performed cost of service analyses for many utilities. This analysis includes
developing rates for residential, commercial and large industrial customer classes. He has also audited the
power supply costs of large industnal corporations and suggested options for reducing their overall costs.
Mr. Andersen, has experience scheduling output from hydroelectric and thermal projects based on inflow
information, flood control restrictions, maintenance outages, economic displacement and native load
requirements. He has experience monitoring gas and electric markets and recommending purchases based
on potential savings in total power supply costs. He is familiar with the functionality of hourly, daily,
monthly and long -term energy markets.
Mr. Andersen has experience working with BPA power and transmission contracts and rates. This
experience runs the gamut from participating in rate case activities to auditing power and transmission
invoices.
EDUCATION
B.S., Electrical Engineering, University of Washington
EES
Consulting
KEVIN SMIT
Manager, Demand -Side Management
Kevin Smit is the Manager for Demand -Side Management with
over 19 years of technical and management experience, primarily
in the energy and utility industry. His current responsibilities
include conservationlDSM potential assessments, utility
,„„,,_conservation program evaluations, technical and regulatory
analyses for electric and water utilities, and resource planning
and acquisition.
Prior to joining EES Consulting, Mr. Smit was Product Manager
at Public Utility District No. 1 of Snohomish County (District).
In this position, he performed the District's conservation/DSM
potential assessments, conservation program evaluations, and
new conservation program design.
Mr. Smit is a member of the Pacific Northwest Regional Technical Forum which provides the
Northwest Power Planning Council and the Bonneville Power Administration with development
and technical review of conservation measures for the region. Mr. Smit has experience with the
Council's methodology and models for estimating cost effective conservation resources.
Prior to the District, Mr. Smit was a Program Manager at Energy International, Inc., managing
and conducting energy technology research projects for electric and gas utilities and government
agencies both in the US and internationally. Selected technical research topics included:
Distributed power generation (including fuel cells, combustion turbines, renewables)
Residential, commercial, and industrial sector energy efficiency
Energy storage
Hydrogen economy
EDUCATION
M.S., Mechanical Engineering, University of Washington
B.S., Mechanical Engineering, Dordt College
ASSOCIATIONS
American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE)
EES
Consulting
KELLY TARP
Project Manager
Kelly Tarp is responsible for providing analytical and technical expertise
for EES Consulting, Inc. in support of economic and financial studies.
Ms. Tarp uses her background in the electric and gas industry to develop
cost of service and cost allocation studies for water. wastewater, storm
water, gas and electric utilities.
Ms. Tarp's background includes experience as a consultant to electric
and gas utilities, government agencies, and supporting energy
organizations. Her experience includes performing technical assessment
studies (topics in the areas of emerging distributed generation
technologies, combined heat and power systems, and HVAC systems) and creating web resources, such as
online calculators and text -based information resources. Additional duties included project management
for a variety of technical evaluation studies, leading efforts to coordinate web tool development,
calculator development and web programming.
In addition to her consulting experience, Ms. Tarp is trained as a mechanical engineer, proficient using
Microsoft products, and is comfortable creating and using complex computer applications and programs.
EDUCATION
B.S, Mechanical Engineering, Washington State University
EES
Consulting
AMBER NYQUIST
Senior Analyst
Amber Nyquist provides analytical expertise for EES Consulting in
support of economic and financial studies. Ms. Nyquist's background
includes research in electric utilities and rates and also intensive
analytical work and forecasting in various fields. She also brings to EES
Consulting knowledge in mergers, and acquisitions among other
competition theory and practices.
In addition to her background in economics, Ms. Nyquist is also trained
in written communication skills. She has four years experience in
teaching others to write as well as abundant experience in written and oral presentations.
At EES Consulting, Ms. Nyquist assists in integrated resource planning for small and large
utilities. Specifically, she analyzes and models conservation and other demand side management
resources. In addition to resource planning, she uses her background in econometrics and data
analysis to collect quality data and develop load forecasts. Also, she utilizes her research skills
to amass current utility information, support survey projects, and to prepare presentation and
reference material.
EDUCATION
M.A., Economics, Simon Fraser University
B.A., Economics, Western Washington University
EES
Consulting
City of Port Angeles April 19, 2010
r A•wear
Total Project Proposed Proposed
Cost Category Costs BPA Cost BPA, Costs
Share (P)
CiliOnt. Ifftrat.TEMMEMSZAMIegragran
80,000
jrgriiigeaBendfitsv=unaiktavfikattiptAle:a&—:,,
24,000
CAffraVeraf-Vt'',VWI,S4=VM`, rgill',"":22:
7,5001 0%
9,T4‘10
See Budget Justification Narrative 1 50%
GAOth
440%L. imivAt4511rWa4Tx"
ptherdirectkcoststinottnotedmisewhereK
See Budget Justification Narrative
ATTACHMENT B
PROPOSED BUDGET
351,500
107,000
Total Costs. 660,000
$0
$175,750
EASCippie41(hPficdtitapfOgoitiddYWL,WI',M4VvVlir?";;;;VA4M;43,41
10,0001 0% $0
Egi;CiSlitraCtUalgaltiMigarige4MASENVOZO AVXMANntrg aZZVASSMEVM-VitairlOffe:
Economic Technical Evaluations 80,000 100% 580,000
100% $107,000
rii "pi:' ;71 $364750
tiillbdite:Ct(Cdstk(elgatIminitt4tiiierciittg/ciVeth VI
0
$362,750,
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 21
City of Port Angeles April 19, 2010
B. Fringe Benefits
C. Travel
D. Equipment
ATTACHMENT C
BUDGET JUSTIFICATION NARRATIVE
A. Personnel
Personnel costs include 1,200'hours of City staff time for this project. Personnel costs are estimated to
total $80,000, with a zero percent cost share provided by the BPA.
Fringe benefits are estimated to be 30% of City personnel costs. Fringe benefit costs are estimated to
total $24,000, with a zero percent cost share provided by the BPA.
Travel costs assume the vehicle operating expenses for miscellaneous project related travel within the
City, and a total of six project related trips to the BPA that are taken by City staff for specific meetings,
including a project kickoff meeting and final presentation of results. Travel is estimated to total $7,500,
with zero percent cost share provided by the BPA.
Equipment includes 500 water heater demand controllers at an estimated installed cost of $400 /unit for a
total cost of $200,000. The equipment also includes 90 home area networks at an estimated cost of
$850 /unit ($76,500 total), and 10 residential thermal storage units at an estimated installed cost of
$7,500 /unit ($75,000 total). Total equipment costs are estimated to be $351,500, with a 50% cost share
provided by the BPA.
Units Cost/Unit Cost
EQUIPMENT (Installed Cost) Units Cost/Unit Cost
1) Water Heater Demand Controllers 500 400 200,000
2) Home Area Networks 90 850 76,500
3) Thermal Storage 10 7,500 75.000
TOTAL EQUIPMENT 351,500
E. Supplies
Supplies required by the City to perform this project include printing costs, website development and
other miscellaneous supply costs. Supply costs are estimated to total $10,000, with a zero percent cost
share provided by the BPA.
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 22
City of Port Angeles April 19, 2010
F. Contractual Services
The City will use a consultant to perform an economic evaluation of the cost effectiveness of DR and
other project- related support services. Contractual services are estimated to total $80,000, with a 100%
cost share provided by the BPA.
G. Other Direct Costs
Direct costs include marketing materials, such as utility bill inserts and survey materials ($25,000 total)
and customer incentives that are a maximum total of $82,000 for the 600 participants. Other direct costs
are therefore estimated to total $107,000, with a 100% cost share provided by the BPA.
H. Indirect Costs
There are no indirect costs.
Residential Demand Response Pdot Projects Funding Opportunity Announcement No. 1530 23
City of Port Angeles April 19, 2010
ATTACHMENT D
REPRESENTATIONS AND CERTIFICATIONS
Residential Demand Response Pilot Projects Funding Opportunity Announcement No. 1530 24
APPENDIX III REPRESENTATIONS AND CERTIFICATIONS
TAXPAYER IDENTIFICATION NUMBER (4 -1) 1
TYPE OF BUSINESS ORGANIZATION (11 -1) 1
PREFERENCE AWARD REPRESENTATION (8 -1) 2
DRUG -FREE WORKPLACE (3 -6) 2
TAXPAYER IDENTIFICATION NUMBER (4 -1)
(DEC 98)(BPI 4.1.2.1)
NOTE:
(1) Taxpayer Identification Number (TIN) reporting does not apply to a Federal agency, a
foreign government or a foreign business not engaged in business or trade or without
an agent capable of receiving payment within the United States.
(2) The TIN for BPA is 93- 0334712.
All offerors, other than noted above, are required to submit its Taxpayer Identification Number requested below in
order to comply with the Department of Treasury payment processing requirements of 31 U S.0 3332 and 7701,
and the reporting requirements of 26 U.S C 6041, 6041A, and 6050M and implementing regulations issued by
the Internal Revenue Service If the resulting contract is subject to those requirements, the failure or refusal by
the offeror to furnish the information may result in a suspension of payment and a thirty -one (31) percent
reduction of payments otherwise due under the contract.
Taxpayer Identification Number 91 6001266
TYPE OF BUSINESS ORGANIZATION (11 -1)
(SEP 02)(BPI 11.10.2.1)
TABLE OF CONTENTS
The offeror, by checking the applicable box, represents that-
(a) It operates as a corporation incorporated under the laws of the State of an individual,
a partnership, a nonprofit organization, or a joint venture, or
(b) It is a X local, state, federally recognized Indian tribe, or other governmental entity, (describe non
charter code city
(c) If the offeror is a foreign entity, it operates as an individual, a partnership, a nonprofit organization,
a joint venture, or a corporation, registered for business in (country) and does does not
have an office or fiscal paying agent in the United States; or
(d) It is a type of business organization not otherwise listed above (describe
Funding Opportunity Announcement No. 1530 Page 1
PREFERENCE AWARD REPRESENTATION (8 -1)
(SEP 98)(BPI 8.1.3)
(a) The offeror represents that.
(1) it is is not X a small business concern and that, if supplies /equipment are offered, all not all
end items to be furnished will be manufactured or produced by a small business concern in the United
States, its territories or possessions, or Puerto Rico, or the Trust Territory of the Pacific Islands.
(2) it is is not X a small disadvantaged business concern
(3) it is is not X a women -owned small business concern
(b) Definitions
(1) Small Business Concern. The North American Industry Classification System (NAICS) code for this
announcement is 221122. A firm is small if, including its affiliates, it is primarily engaged in the
generation, transmission, and /or distribution of electric energy for sale and its total electric output for the
preceding fiscal year did not exceed 4 million megawatt hours
(2) Small Disadvantaged Business Concern See BPI Appendix 8 -A for a detailed definition.
DRUG -FREE WORKPLACE (3 -6)
(SEP 98)(BPI 3.6.4)
(a) The contractor agrees that with respect to all employees to be employed under this contract it will provide a
drug -free workplace as described in this clause.
(b) Definitions As used in this clause "Controlled substance" means a controlled substance in schedules I
through V of section 202 of the Controlled Substances Act (21 U.S.C. 812), as from time to time amended,
and as further defined in regulation at 21 CFR 1308 11- 1308.15, as amended.
"Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both,
by any judicial body charged with the responsibility to determine violations of the Federal or State criminal
drug statutes.
"Criminal drug statute" means a Federal or non Federal criminal statute involving the manufacture,
distribution, dispensing, possession or use of any controlled substance.
"Drug -free workplace" means the site(s) for the performance of work done by the contractor in connection
with a specific contract at which employees of the contractor are prohibited from engaging in the unlawful
manufacture, distribution, dispensing, possession, or use of a controlled substance.
"Employee" means an employee of a contractor directly engaged in the performance of work under a
Government contract. "Directly engaged" is defined to include all direct cost employees and any other
contractor employees who have other than a minimal impact or involvement in contract performance
"Individual" means an offeror /contractor that has no more than one employee including the offeror /contractor.
(c) The Contractor, if other than an individual, shall within 30 calendar days after award (unless a longer period
is agreed to in writing for contracts of 30 calendar days or more performance duration); or as soon as possible
for contracts of less than 30 calendar days performance duration
Funding Opportunity Announcement No. 1530 Page 2
(1) Publish a statement notifying its employees that the unlawful manufacture, distnbution, dispensing,
possession, or use of a controlled substance is prohibited in the contractor's workplace and specifying the
actions that will be taken against employees for violations of such prohibition;
(2) Establish an on -going drug -free awareness program to inform such employees about-
(A) The dangers of drug abuse in the workplace,
(B) The contractor's policy of maintaining a drug -free workplace,
(C) Any available drug cop,nseling, rehabilitation, and employee assistance programs; and
(D) The penalties that may be imposed upon employees for drug abuse violations occurring in the
workplace.
(3) Provide all employees engaged in performance of the contract with a copy of the statement required by
subparagraph (c)(1) of this clause;
(4) Notify such employees in writing in the statement required by subparagraph (c)(1) of this clause that, as a
condition of continued employment on this contract, the employee will-
(A) Abide by the terms of the statement; and
(B) Notify the employer in writing of the employee's conviction under a criminal drug statute for a violation
occurring in the workplace no later than five (5) days after such conviction
(5)
(6) Within 30 days after receiving notice under subparagraph (c)(4)(B) of this clause of a conviction, take one
of the following actions with respect to any employee who is convicted of a drug abuse violation occurring
in the workplace
Notify the Contracting Officer in writing within ten (10) days after receiving notice under subdivision
(c)(4)(B) of this clause, from an employee, or otherwise receiving actual notice of such conviction The
notice shall include the position title of the employee;
(A) Taking appropriate personnel action against such employee, up to and including termination; and /or
(B) Require such employee to satisfactorily participate in a drug abuse assistance or rehabilitation
program approved for such purposes by a Federal, State, or local health, law enforcement, or other
appropnate agency
Make a good faith effort to maintain a drug -free workplace through implementation of subparagraphs
(c)(1) through (c)(6) of this clause.
(d) In addition to other remedies available to the Government, the Contractor's failure to comply with the
requirements of paragraph (c) of this clause may, pursuant to BPI 3 6.3 render the contractor subject to
suspension of contract payments, termination of the contract for default, and suspension or debarment
Funding Opportunity Announcement No. 1530 Page 3
2,250
1,500
750
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1 23 45 67 89 111 133 155 177 199 221 243 265 287 309 331 353 375 397 419 441 463 485 507 529 551 573 595 617 639 661
pORTANGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: July 13, 2010
To: Utility Advisory Committee
From: Larry Dunbar, Deputy Director of Power Systems
Subject: Consultant Agreement Amendment No. 3 for Commercial and Industrial Demand
Response Grant Program
Summary: The Bonneville Power Administration recently issued a request for proposals for
Commercial and Industrial Demand Response Pilot Project. An added scope of work, schedule
and pricing for consulting services with EES Consulting has been negotiated to prepare a proposal.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to 1) sign Amendment No. 3 to the consulting services agreement with EES
Consulting in an amount not to exceed $12,300, and 2) make minor modifications to the
agreement, if necessary.
Background /Analysis: While the City has been successful in obtaining a Bonneville Power
Administration (BPA) award for a residential demand response (DR) pilot project, additional DR
resources will be needed from commercial and industrial (C I) customers to minimize future
increased demand charges under the Tiered Rate Methodology (TRM). BPA recently announced
the availability of a C I pilot project and staff has participated in a brownbag session and a
stakeholder meeting during June to learn more about the grant opportunity. BPA retained Global
Energy Partners as its consultant to work with utilities that will be submitting proposals.
The C I pilot project is an opportunity to help the City and local businesses to reduce their
electrical charges and prepare for retail tiered rates that will begin in January of 2012. Subject to
the availability of BPA funds, anticipated initial efforts may include the City, primary electric
customers, and the industrial transmission customer in the proposal. If possible the Commercial
Demand Response Study that's included in the 2010 -2016 Capital Facilities Plan will also be
included in the proposal. Subsequent efforts could include all commercial customers.
Because of time constraints and the complexity and interrelationships of the Advanced Metering
Infrastructure System and three related projects (residential DR project, retail TRM study, and
communications plan), staff recommends that consulting services be obtained to prepare the City's
C I DR proposal to the BPA prior to the September 30, 2010 due date. EES Consulting, Inc.
(EESC) has worked with staff on several other successful projects such as the Residential DR
proposal, Conservation Potential Assessment, a regional DR evaluation for the Western Public
Agencies Group, as well as the City's Advanced Metering Infrastructure System Request for
Proposals. EESC is available and staff recommends that their services are retained for this effort.
N: \UAC\Final\BPA C &I DR Grant Application.doc
Consultant Agreement Amendment No. 2 for Demand Response Grant Program
July 13, 2010
Page 2
Additional information about the BPA C I DR pilot project is available on the City's File
Transfer Protocol website at http: /olypen.com/copa under the "AMI System RFP" folder.
Staff and EESC have negotiated the scope of work, schedule and $12,300 fee. Funding for the
proposed consulting services will be paid from the electric utility capital improvement project
budget.
The proposed scope of work for consulting services is summarized in the table below:
Tasks I Budget
1. Meetings and coordination with Global Energy Partners 1 $4,100
1 2. Prepare grant application 1 8,200
1 Total 1 $12,300
Staff requests that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the City Manager to 1) sign Amendment No. 3 to the consulting services
agreement with EES Consulting in an amount not to exceed $12,300, and 2) make minor
modifications to the agreement, if necessary.
Date:
To:
pORTANGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
July 13, 2010
Utility Advisory Committee
From: Philip Lusk, Power Resources Manager
Rick Hostetler, Customer Services Manager
Subject: Enron Settlement Agreement Update
Summary: The City participated in the Attorney General's Enron energy restitution program,
and used its allocation of settlement funds to provide energy assistance to its low- income senior or
disabled citizens who are eligible to receive a utility discount.
Recommendation: For information only, no action requested.
Background /Analysis: In 2009, Washington State concluded the Enron bankruptcy
proceedings, and distributed the funds recovered from the Enron bankruptcy related to the 2000-
2001 West Coast energy crisis. In November 2009, the Attorney General of Washington State
offered the City $19,507.30 to be used for low- income energy assistance or weatherization
programs. A key stipulation was the City disburses all the money by no later than December 31,
2010. On December 15, 2009, the City Council authorized the City Manager to sign the Enron
Settlement Agreement. As the City's weatherization efforts are fully- funded through the end of
the 2010, staff recommended and Council concurred that the funds be used to provide energy
assistance to the City's low- income residential customers that are eligible to receive a utility
discount.
Chapter 13.20 PAMC established utility discounts for low- income senior or disabled citizens. The
discount is a percentage of the monthly utility bill, and the specific percentage is dependent upon
the customer's income levels. Specifically, customers having an annual income of $0- $7,999 are
eligible for a 30% discount (D4); $8,000- $11,500 are eligible for a 20% discount (D3); $15,501-
$17,500 are eligible for a 10% discount (D2), and; $17,501- $21,500 are eligible for a 5% discount
(D1). In order to provide progressive restitution to the lowest- income customers who were most
harmed by the companies' alleged conduct, staff determined that an increasing level of base
restitution should be provided to each discount customer class.
In May 2010, the total of $19,507.30 was provided as restitution to provide residential low- income
energy assistance to the City's electric utility customers, and as a result fulfilled the purpose of the
underlying Court- approved settlement. A total of 277 low- income residential customers in the
City benefited as a result of the Agreement, and the specific details of the distribution are provided
in Table 1 on the following page.
N \UAC\Final\Enron Settlement Agreement Update doc
Enron Settlement Agreement Update
July 13, 2010
Page 2
TABLE 1: Enron Settlement Agreement Distribution
Class D1 D2 D3 D4
Customers /Class 36 119 109 13
Base 25.00 50.00 75.00 100.00
Residual 11.48 11.48 11.48 11.66
Restitution/Customer 36.48 61.48 86.48 111.66
Restitution/Class 1,313.28 7,316.12 9,426.32 1,451.58
Distribution by Class 6.7% 37.5% 48.3% 7.4%
OFT)NGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: July 13, 2010
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Advanced Metering Infrastructure System Project Update
Summary: A component of the Advanced Metering System Project includes completing a Retail
Tiered Rate Methodology Study for the City's electric utility. The Utility Advisory Committee and
the City Council will be asked to make key policy decisions during the month of August 2010.
Recommendation: Information only, no action requested.
Background /Analysis: As previously reported, in preparing for the shift to the Bonneville
Power Administration (BPA) Tiered Rate Methodology (TRM) for wholesale power purchases
effective October 1, 2011, the City intends to independently assess and evaluate alternatives to
equitably allocate the BPA wholesale TRM power costs to customer rate classes (e.g., residential,
commercial, etc.), develop retail rate design options for each rate class based on the shift to BPA
wholesale TRM power costs, evaluate cash reserve needs, and develop a capital financing strategy.
Next month the Utility Advisory Committee and City Council will be asked to make key policy
decisions regarding the most advantageous BPA wholesale TRM power cost allocation alternative
and retail rate design option developed by EES Consulting. The key policy decisions will then be
incorporated into the Advanced Metering Infrastructure project and used by the City next year to set
retail electric rates that will be effective beginning January 2012. The schedule for the Retail TRM
Study is summarized below.
Dates
August 4, 2010
August 10, 2010
August 17, 2010
N: \UAC\Final\AMI System RFP Update doc
Action Items
Public meetings (one at noon; one at 6:00 pm in the Council Chambers)
Utility Advisory Committee presentation to consider recommendations
on key policy decisions
City Council presentation to consider approval of key policy decisions
Date:
To:
From:
Subject:
Dates
September 14, 2010
September 21, 2010
October 5, 2010
October 12, 2010
October 19, 2010
January 6, 2011
pORTANGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
July 13, 2010
Utility Advisory Committee
Larry Dunbar, Deputy Director of Power Systems
Utility Rate Studies Calendar
Summary: A schedule has been prepared to inform the Utility Advisory Committee about
upcoming dates and action items related to this year's utility rate studies.
Recommendation: For information only, no action requested.
Background /Analysis: In 2008, cost of service studies were completed for the water,
wastewater, solid waste collections and transfer station utilities by FCS Group. Last year a cost of
service study was completed for the electric utility by FCS Group. This year rate studies will be
completed by staff for all utilities (electric, water, wastewater, solid waste collection, transfer
station, and stormwater).
The schedule including dates and action items is provided below for more information. We
anticipate that the September Utility Advisory Committee may take more time than normal to
review the findings and recommendations for each utility.
N \UAC\Final \Utility Rate Studies Calendar doc
2010 Utility Rate Studies Schedule
Action Items
Presentation to the Utility Advisory Committee
City Council sets public hearing
Presentation to the City Council; open pubic hearing
Utility Advisory Committee recommendation to City Council
Continue public hearing, close public hearing, adopt rates
New rates in effect