HomeMy WebLinkAbout5.1058 Original ContractUNITED STATES
GOVERNMENT
Mail Invoice To:
.See Page 2
Vendor:
CITY OF PORT ANGELES
321 EAST FIFTH STREET
PORT ANGELES WA 98362
Attn: PHIL LUSK
Contract Title: RESIDENTIAL DEMAND RESPONSE PILOT PROJECT
5-1058 AMENDMENT 3
COOPERATIVE AGREEMENT BONNEVILLE
POWER ADMINISTRATION
Please Direct Inquiries to'
KRISTA L. MCCRACKEN
Title: CONTRACT SPECIALIST
Phone: 503- 230 -5383
Fax 503 230 -4508
Contract 00048475
Release
Page 1
Total Value 5322,172.00 NOT TO EXCEED
Pricing Method: COST SHARE (NO FEE) Payment Terms Days Net 30
Performance Period: 08/02/10 09/30/13
Contractor Signature
cwt c460e vk 0,4 -y1, g
Printed Name/Title
OAS 1201
Date igned
Title MODIFY SCOPE, PERFORMANCE PERIOD BUDGET
Modification: 003
Modified Performance Period: 09/30/13
Modification Value: (5103,838.00)
Pricing Method
IJPA Con acting Officer
Date Signed
CONTINUATION SHEET
Cooperative Agreement No. 48475 Modification No. 003
Residential Integrated Automated Metering Infrastructure Demand Response Pilot Project
Project Technical Representative Melanie Parker 503 230 -3170 mroarker anboa aov
Financial Assistance Officer Krista McCracken 503 230 -5383 klmccracken a( boa.aov
The purpose of this modification is to incorporate changes to the project scope, period of performance,
budget, and cost share. The modification consists of the signature page, the continuation sheet, and a
conformed copy of Unit 1- Terms and Conditions, Unit 2 Project Description, and Unit 3 Budget. The
parties mutually agree to the changes incorporated herein.
1. Unit 1 Terms and Conditions
Clause 4 -23, Personal Property Management, is revised to reflect the elimination of 10 Residential
Thermal Storage Units (Thermal Storage Room Heaters) and the addition of 500 Mueller Systems
Bridge /Gateway equipment required for communication with existing water heater and thermostat/ /HAN
equipment.
2. Unit 2 Project Description
Changes to the Project Description include the number of participants in the Equipment Testing Matrix,
the equipment and number of units included in the pilot, the elimination of Task 4 (Dispatchable
Demand Response), the project timeline and completion dates for remaining deliverables.
3. Unit 3 Budget
The award ceiling is reduced by $103,838 from $426,010 to $322,172, and BPA's cost share is reduced
from 60 percent to 44 percent. The budget category D, Equipment, is increased by $14,687 and broken
out to separately reflect equipment and installation costs Cost share is adjusted for budget categories
D, F, and G
4 Project expenditures must be incurred by September 30, 2012. Any funds remaining are subject to de-
obligation
5. 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.
6 All other terms and conditions remain the same.
Cooperative Agreement No. 48475 Modification No. 003 Page 2
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 REQUIREMENTS 4
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 -25 BPA PROPERTY TO BE GRANTED 9
CLAUSE 4 -26 BUDGET CHANGES AND LINE ITEM TRANSFERS 10
CLAUSE 3 -3 CERTIFICATION, DISCLOSURE, AND LIMITATION REGARDING PAYMENTS TO
INFLUENCE CERTAIN FEDERAL TRANSACTIONS 10
CLAUSE 3 -6 DRUG -FREE WORKPLACE 12
UNIT 2 PROJECT DESCRIPTION 14
UNIT 3 BUDGET 22
Cooperative Agreement No. 48475 Modification No. 003 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 NONDISCRIMINATION IN 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 period 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
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
Cooperative Agreement No. 48475 Modification No. 003 Page 4
(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. Interim 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.
(c) The use of alternate disputes resolution processes are encouraged, and may be used as negotiated
between the parties
Cooperative Agreement No. 48475 Modification No. 003 Page 5
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 principles, 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 Tess 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 authorized 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 Modification No. 003 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 4.10)(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. Prior 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 Modification No. 003 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 Principal 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 prior
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:
Description Units
Thermal Storage Communications Hardware 030
(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.
Cooperative Agreement No. 48475 Modification No. 003 Page 8
(c) Recipient- acquired personal property.
(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 090
Mueller Systems Bridge /Gateway 500
(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 -25 BPA PROPERTY TO BE GRANTED
(BFAI 4.10) (SEP 04)
The following BPA property is granted to the recipient for use in the work supported by this award. Title to
the property vests with the recipient upon receipt. 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 Following completion
of the project and submission of the final report, if one is required, the recipient is relieved of accountability
for the property.
Description Units
Thermal Storage Room Heaters 020
Thermal Storage Water Heater Controllers 020
Thermal Storage Whole House Furnace 001
Cooperative Agreement No. 48475 Modification No. 003 Page 9
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.
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
Cooperative Agreement No. 48475 Modification No. 003 Page 10
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
(1)
(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)
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.
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.
(f) 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
(g) All subcontractor disclosure forms (but not certifications), shall be forwarded from tier to tier until
received by the prime 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.
Cooperative Agreement No. 48475 Modification No. 003 Page 11
(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 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 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 Tess 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
Cooperative Agreement No. 48475 Modification No. 003 Page 12
(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
(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 Modification No. 003 Page 13
UNIT 2 PROJECT DESCRIPTION
1.0 RESIDENTIAL INTEGRATED AUTOMATED METERING INFRASTRUCTURE
DEMAND RESPONSE PILOT PROJECT
1.1 GENERAL DESCRIPTION
The City of Port Angeles submitted a proposal 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) 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 500 bridges /gateways that are required for
device communication. Additionally, BPA provided 20 additional thermal storage room heaters, 20 thermal
storage water heater controllers and 1 thermal storage whole house furnace. 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
Room Heater Group
Thermal Storage Room Heater
Thermal Storage Water Heater
Group
Thermal Storage Whole House
Furnace Group
1 TOTAL
Table 1 -1
Equipment Testing Matrix
Participants in
Number of Control Group
Participants (0 hours /day
impact)
100 100 0
1 500 1 30 1 370
90 10 80
0 0 0
20 0 20
20 0 20
1
731
0
140
Participants in Critical
Peak Hour Group
(1 hour /day impact)
1
491
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
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 Sharif, 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
Cooperative Agreement No. 48475 Modification No. 003
Page 14
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 Toad and
survey data, will evaluate the cost effectiveness of DR and the City's electric utility customer's acceptance
of DR technologies
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 2011 and 2012, 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 I Olympic Peninsula Project, DOE
Contract Number DE- ACO5- 76RL01830, October 2007
Cooperative Agreement No. 48475 Modification No. 003 Page 15
1.4 CONSUMER IMPACT
A voluntary group of approximately 731 participants will be enrolled in this pilot project. Most of the
participants will be residential customers, but the City may elect to install some of the thermal storage
equipment in small commercial customer settings. 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 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.
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 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. Additionally, the thermal storage room heater thermal storage
water heater controller 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 $620
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 Toad shape, and to
minimize its use of BPA's capacity constrained transmission system.
2.0 PROPOSED TECHNOLOGY
The City is working with Mueller Systems in the procurement and installation of a turnkey AMI system for its
electric and water utilities. Mueller Systems is also providing and installing 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
o 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.
o 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) heating devices 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
Cooperative Agreement No. 48475 Modification No. 003 Page 16
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.
Thermal storage water heater controllers a different type of water heater controller from the unit
described above that is to be widely deployed as part of this project. This controller will cycle or turn off
electric water heater elements during peak curtailment periods, but additionally allows for advance
cycling and water heating in excess of normal operating temperatures during periods of low demand
and /or excess energy generation.
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.
Table 3 -1
Peak Demand Reduction
Peak Demand Reduction
(kW /month)
Water Heater Only 260
Water Heater HAN (Utility Controlled) 175
Water Heater HAN (Customer Controlled) 0
Water Heater Thermal Storage 55
TOTAL 490
4.0 READINESS
The City was in the process of issuing the AMI system RFP The selection process included 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 selected vendor is required to install a "Phase 1" of the AMI system for the electric utility in conjunction
with the pilot project DR equipment, 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 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 Modification No. 003 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
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 approximately 731 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
Small commercial customers for thermal storage room heater and water heater controllers
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 Additionally, the thermal storage room heater
thermal storage water heater controller 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
$620
5.3 TASK 3— DEMAND RESPONSE EQUIPMENT TESTING
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.
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 control group's participants will still receive the DR equipment and will
Cooperative Agreement No. 48475 Modification No. 003 Page 18
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.
Baseline Control Group
(no DR equipment)
Water Heater Only Group
Water Heater HAN Group (Utility
Controlled)
Water Heater HAN Group
(Customer Controlled)
Water Heater Thermal Storage
Room Heater Group
Thermal Storage Room Heater
Thermal Storage Water Heater
Group
Thermal Storage Whole House
Furnace Group
TOTAL I 731
5.4 TASK 4— ECONOMIC EVALUATION
Table 5 -1
Equipment Testing Matrix
Participants in Participants in Critical
Number of Control Group
Peak Hour Group
Participants (0 hours /day hour /day impact)
impact)
100 100 0
500 1 30 1 370 1
90 10 80
0 0 0
20 0 20
20 0 20
1
1
5.5 TASK 5— CUSTOMER ACCEPTANCE EVALUATION
0
140
1
Data will be collected over a full year, including the winter 2012/2013 and summer 2013.
1
491
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, 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, 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.
This task includes the review of customer acceptance based on the survey results. Survey results for the
500 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
Cooperative Agreement No. 48475 Modification No. 003 Page 19
6.0 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.
able 6-
Proiec Timeline°
Planning and
Design
Customer
Recruitment
Marketing
Education
Installation
Testing /Operation
Evaluation of
Results
Q1
8.0 DELIVERABLES
7.0 MEASUREMENT AND VERIFICATION
FY 2012
Q4 1 Q1 1 Q2 1 Q3
FY 2013
04 1 Q1 I Q2 I
1 1 1
Q3
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
meats of DR, a double blind study will occur where two volunteer groups will be formed The first group, the
participant group, will consist of 500 volunteers who will have their appliances remotely cycled by the utility.
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 control group Possible variables are: heating degree days,
appliance saturations, or monthly variables. Once the forecast model is developed, characteristics of the
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 control groups
since both groups experience the same weather during the period the pilot project is being conducted.
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 through the summer of FY2013 and complete the evaluation of the results by the end of
FY2013.
Cooperative Agreement No. 48475 Modification No. 003 Page 20
Q4
TABLE 8- 1
Milestones
Refined Plan Design
Status Reports
L BLES
Completion
March 2011
Installation December 31, 2012
Testing Begins June 2012
Testing Ends August 31, 2013
Economic Results September 30, 2013
Customer Acceptance Results September 30, 2013
Quarterly, based on calendar quarters and
beginning with the quarter ending 12/31/2010.
Due within 30 days of the end of each calendar
quarter.
Cooperative Agreement No. 48475 Modification No. 003 Page 21
UNIT 3 BUDGET
Cost Category
A. Personnel
B. Fringe Benefits
C. Travel
D. Equipment and Installation
Equipment
Installation
E. Supplies (non durable goods)
F. Contractual
G. Other Direct Costs
Mod 002
Total Proposed Proposed Total
Project BPA Cost BPA Project
Costs Share Costs Costs
74.310
22,290
8. 570
2,500
See Other Direct Cost Detail 122,620
Total Direct Costs 1 713,120
H. Indirect Costs
0 1
Total Indirect Costs 0
0% 00
0155,227
50% $67,603
0%
$0
$80560
80,560 1 100%
emaor
100% I $122,620
$426,010 1
$0
o1
0
14,687
Change
Proposed Proposed
BPA Cost BPA
Share Costs
0 50
Cooperative Agreement No. 48475 Modification No. 003 Page 22
ang
Total
Project
Costs
22,290
0% $0 8570
38 $116,975 $281,752
$67,603
Mod 003
Proposed
BPA Cost
Share
135,205
-84% $67,725 80,560
97`' 0272,202
$0
0%
00 2,500 0%
Proposed
BPA
Costs
00
16% $12,835
$0
wax
01 -70% $85,485 122,620 1 30% $37,135
14,687 $103,838 1 727,807 $322,172
L
0I 1 o
0 $0 0
$0
Total Costs 713,120 $426,010 14,687 $103,838 727,807 44% $322,172
4 I OS?
UNITED STATES
GOVERNMENT
Mail Invoice To:
See Page Two
Vendor:
CITY OF PORT ANGELES
321 EAST FIFTH STREET
PORT ANGELES WA 98362
Attn: PHIL LUSK
Contract Title: RESIDENTIAL DEMAND RESPONSE PILOT PROJECT
C( tractor Signatur
t 4t
Printed Name/TAW
%D '9 to
Date Signed
Contract Modifications
Title REVISED PROJECT DESCRIPTION AND BUDGET
Modification: 001
Modified Performance Period:
Modification Value: $59,010.00
Pricing Method
COOPERATIVE AGREEMENT BONNEVILLE
POWER ADMINISTRATION
Please Direct Inquiries to:
KRISTA L. MCCRACKEN
Title: CONTRACT SPECIALIST
Phone: 503 -230 -5383
Fax 503 230 -4508
Contract 00048475
Release
Page 1
Total Value $426,010.00 NOT TO EXCEED
Pricing Method: COST SHARE (NO FEE) Payment Terms Days Net 3 0
Performance Period: 08/02/10 08/01/12
BPA Contracting Officer
12 24ry
Date Signed
4
Cooperative Agreement No. 48475
Modification No. 001
Residential Integrated Automated Metering Infrastructure Demand Response Pilot Project
Project Technical Representative Roy Beaty 503 230 -5213 rebeatvaboa.aov
Alternate Project Technical Representative Frank Brown 206 220 -6774 febrown( bpa.aov
Financial Assistance Officer Krista McCracken 503 230 -5383 klmccrackenaboa.aov
This cooperative agreement is hereby modified as follows and consists of the signature page, pages two
and three, the revised project description and the revised budget.
1. The award amount is increased by $59,010 from $367,000 to $426,010, thereby increasing the total
project budget from $654,110 to $713,120. BPA's cost share is therefore revised from 56% to 60
Unit 3 Budget is adjusted to address costs associated with installation and customer incentives for
additional equipment per revised Unit 2 Project Description. Further adjustments are made to reflect
more accurate cost estimates for installation and marketing materials.
2. Unit 2 Project Description is revised to incorporate, at BPA's request, the addition of BPA- furnished
electric thermal storage equipment, clarification of status reporting requirements, clarification of
impact on customers, update of tasking schedules and application of existing incentive plans to the
new equipment groups. Specifically, the equipment to be added are 20 Thermal Storage Room
Heaters, 20 Thermal Storage Water Heater Controllers, 1 Thermal Storage Whole House Furnace
and 30 Thermal Storage Communications Hardware Kits. These changes are reflected in pp. 14 -19 of
the cooperative agreement, particularly Table 1 -1 (p.14) and Table 5 -1 (p. 19). The project description
is also revised to: clarify ambiguous /contradictory status reporting requirements as reflected in Table
8 -1 (p 21); extend Section 1.4 Customer Impact to include small commercial customers; apply
existing incentive plans to the new equipment groups under sections 1.5 Recruitment and 5.2 Task 2
Recruitment/Incentives, and update tasking schedules in Table 6 -1 (p. 20) and Table 8 -1 (p. 21)
3. 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: Roy Beaty KLS -6
PO Box 3621
Portland, OR 97208
4. Clause 4 -23, Personal Property Management, is revised in its entirety to reflect the addition of electric
thermal storage (ETS) equipment and control /communications devices.
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.
Cooperative Agreement No. 48475 Modification No. 001 Page 2
(c) Recipient- acquired personal property.
(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
Description Units
Thermal Storage Communications Hardware 30
(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
i
Description Units
Water Heater Demand Controllers 500
Home Area Networks 90
Thermal Storage Room Heaters 30
Thermal Storage Water Heater Controllers 20
Thermal Storage Whole House Furnace 1
(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 loss, damage,
or theft of the property
(3) The recipient shall follow adequate maintenance procedures to keep the property in good
condition.
Cooperative Agreement No. 48475 Modification No. 001 Page 3
UNIT 2 PROJECT DESCRIPTION
1.0 RESIDENTIAL INTEGRATED AUTOMATED METERING INFRASTRUCTURE
DEMAND RESPONSE PILOT PROJECT
1.1 GENERAL DESCRIPTION
The City of Port Angeles submitted a proposal 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). 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. Additionally, BPA provided 20 additional thermal storage room heaters, 20 thermal storage
water heater controllers and 1 thermal storage whole house furnace. 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)
Water Heater Only Group 1
Water Heater HAN Group (Utility
Controlled)
Water Heater HAN Group
(Customer Controlled)
Water Heater Thermal Storage
Room Heater Group
Thermal Storage Room Heater
Thermal Storage Water Heater
Group
Thermal Storage Whole House
Fumace Group
1 TOTAL
Equ ipment Testi n g �Matrix
Participants in
Number of Control Group
Participants (0 hours /day
impact)
100 100
400 1 30 1
90 10
0 0
30 0
20 0
1
641
140
Participants in Critical
Peak Hour Group
(1 hour /day impact)
0
370
80
0
30
20
0 1
501
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
1
Cntical peak penod is defined as the City's non- comcident 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 I, 2009) Available at SSRN• http /ssrn com/abstract= 1407701
Cooperative Agreement No. 48475 Modification No. 001
Page 4
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.
1.2 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 /or 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
3 Pacific Northwest National Laboratory, Pacific Northwest GndWise Testbed Demonstration Projects, Part I Olympic Peninsula Project, DOE
Contract Number DE- ACO5- 76RL01830, October 2007
Cooperative Agreement No. 48475 Modification No. 001 Page 5
Delay or eliminate regional transmission system upgrades
1.4 CONSUMER IMPACT
A voluntary group of approximately 641 participants will be enrolled in this pilot project. Most of the
participants will be residential customers, but the City may elect to install some of the thermal storage
equipment in small commercial customer settings. 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 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 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. Additionally, the thermal storage
room heater thermal storage water heater controller 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 $620.
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.
o 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
Cooperative Agreement No. 48475 Modification No. 001 Page 6
o 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) heating devices 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 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.
Thermal storage water heater controllers a different type of water heater controller from the unit
described above that is to be widely deployed as part of this project. This controller will cycle or turn
off electric water heater elements during peak curtailment periods, but additionally allows for advance
cycling and water heating in excess of normal operating temperatures during periods of low demand
and /or excess energy generation.
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.
Water Heater Only
Water Heater HAN (Utility Controlled)
Water Heater HAN (Customer Controlled)
Water Heater Thermal Storage
TOTAL
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 is in the process of
issuing the vendor contract. 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, 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 2011, however, this will not impact the DR pilot project.
4 SEE http /www steffes com/off- peak- heatmg/ets html
Cooperative Agreement No. 48475 Modification No. 001
Peak Demand Reduction
(kW /month)
260 1
175 1
0 1
55
490
Page 7
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.
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 matenals
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 approximately 641 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
Small commercial customers for thermal storage room heater and water heater controllers
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
Cooperative Agreement No. 48475 Modification No. 001 Page 8
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. Additionally, the thermal storage
room heater thermal storage water heater controller 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 $620.
5.3 TASK 3—DEMAND RESPONSE EQUIPMENT TESTING
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.
Baseline Control Group
(no DR equipment)
Water Heater Only Group
Water Heater HAN Group (Utility
Controlled)
Water Heater HAN Group
(Customer Controlled)
Water Heater Thermal Storage
Room Heater Group
Thermal Storage Room Heater
Thermal Storage Water Heater
Group
Thermal Storage Whole House
Furnace Group
TOTAL
Number of
Participants
100
400
90
0
10
20
1
641
5.4 TASK 4— DISPATCHABLE DEMAND RESPONSE
Participants in
Control Group
(0 hours /day
impact)
100
30
10
0
0
0
140
Participants in Critical
Peak Hour Group
(1 hour /day impact)
0
370
80
0
10
20
0 1
501
Data will be collected over a full year, including the summer 2011 and winter 2011 -2012 periods
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
Cooperative Agreement No. 48475 Modification No. 001 Page 9
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.
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.
6.0 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
;Table', =1<`
roject Timeline
Planning and Design
Customer Recruitment
Marketing Education
Installation
FY 2010
Cooperative Agreement No. 48475 Modification No. 001
FY 2011
FY 2012
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Page 10
Testing /Operation
Evaluation of Results
7.0 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 450 volunteers who will have their appliances remotely cycled by the
utility. The second group, the equipment control group, will be 40 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.
8.0 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 penod.
Refined Plan Design
Status Reports
ELIVERABL
Milestones
Completion (Days after Award Execution)
30 days
Description of Pilot Test Events 120 days
Testing Begins 180 -240 days
Testing Ends 540 -720 days
Economic Results 720 days
Quarterly, based on calendar quarters and
beginning with the quarter ending
12/31/2010. Due within 30 days of the end
of each calendar quarter.
Cooperative Agreement No. 48475 Modification No. 001 Page 11
Customer Acceptance Results 720 days
9.0 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.
10.0 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.
10.1 THE CITY OF PORT ANGELES
Figure 10 -1
Proposed Project Team
Organization Chart
EES Consulting. Inc.
K evin Smit
City of Port Angeles
Lary Dunbar. Project Manager
Philip Lusk. Principal Investigator
Vendor
(TED)
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
Cooperative Agreement No. 48475 Modification No. 001 Page 12
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 Engineenng 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.
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.
Cooperative Agreement No. 48475 Modification No. 001 Page 13
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
electnc 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.
Gary Saleba, President
Gary Saleba is President of EES Consulting, Inc. His areas of specialty include overall quality control for
all of EE 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.
Cooperative Agreement No. 48475 Modification No. 001 Page 14
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 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.
Cooperative Agreement No. 48475 Modification No. 001 Page 15
UNIT 3 BUDGET
re sonnet
k h�dk arati d:d.E
See Personnel Detail
13 FringeBenefits n(o
See Personnel Detail
See Travel Detail
gitemen
See Equipment Detail
uppli s "(non durable "goods
ontractual
See Contractual Detail
See Other Direct Cost Detail
ylndjreect osts
costsloverhead
N/A
Cost Category
Total
Project
Costs
74,310
22,290
8,570
-Total Indirect Costs
358,880
2,500
80,560
107,000
Total Dir'ect 1 654,110
0
Total Costs 654,110
Cooperative Agreement No. 48475 Modification No. 001
Original Change
Proposed Proposed Total Proposed Proposed
BPA Cost BPA Costs Project BPA Cost BPA
Share Costs Share Costs
0%
$0
50% $179,440 43,390
$0
0%
100% $80,560
100% $107,000 15,620
$367,000 59,010
$0
0
0
0
0
$367,000 59,010
0%
5%
0%
0%
$0
Total
Project
Costs
0 8,570
43,390 402,270
0 2,500
0 80,560
0% $15,620 122,620
$59,010 713,120
0
$59,010 713,120
Revised
Proposed Proposed
BPA Cost BPA
Share Costs
0%
55% $222,830
0% $0
100% $80,560
100% $122,620
$426,010
Page 16
$0
$0
$426,010
UNITED STATES
GOVERNMENT
Mail Invoice To:
See Page 2
Vendor:
CITY OF PORT ANGELES
LIGHT DEPT
321 EAST FIFTH STREET
PORT ANGELES WA 98362
Attn: PHIL LUSK
Contract Title:
Total Value $367,000.00
Pricing Method: COST SHARE (NO FEE)
Performance Period: 08/02/10 08/01/12
Contractor Si
Printed Na
21 10
Date Signed
RESIDENTIAL DEMAND RESPONSE PILOT PROJECT
COOPERATIVE AGREEMENT BONNEVILLE
POWER ADMINISTRATION
Please Direct Inquiries to:
KRISTA L. MCCRACKEN
Title: CONTRACT SPECIALIST
Phone: 503- 230 -5383
Fax 503- 230 -4508
Contract 00048475
Release
Page 1
NOT TO EXCEED
Payment Terms: Days Net 30
B A Contracting Officer
2 P Vide Zp /d
Date Signed
5•. 1OS--
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 febrownboa.00v
Financial Assistance Officer Krista McCracken 503 230 -5383 klmccrackenna boa.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 NONDISCRIMINATION IN 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 period 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
I-
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 Interim 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 tnps is not
required. In accordance with the applicable cost principles, 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 authorized 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 nght 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 4.10)(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. Prior 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 Principal 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 prior 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 nght 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 loss, 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 tnbe" 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
(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 less 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.
(f) 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.
(g) All subcontractor disclosure forms (but not certifications), shall be forwarded from tier to tier until received by
the prime 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 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.
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)
(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
(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.
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:
(5)
Provide all employees engaged in performance of the agreement with a copy of the statement required by
subparagraph (c)(1) of this clause;
(A) Abide by the terms of the statement; and
(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
(AM I) 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)
Water Heater Only Group
Water Heater HAN Group (Utility
Controlled)
Water Heater HAN Group
(Customer Controlled)
Water Heater Thermal Storage
Group
I TOTAL
Table 1 -1
Equipment Testing Matrix
Participants in Control
Group
(0 hours /day impact)
Number of
Participants
100 100
400 I 30
90 10
0 0
Participants in Critical Peak
Hour Group
(1 hour /day impact)
0
370
80
0
10 0 10
600 I 140 I 460
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.
1 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 Shanf, 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
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 GndWise 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 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.
2.0 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 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.
3.0 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.
Water Heater Only
Water Heater HAN (Utility Controlled)
Water Heater HAN (Customer Controlled)
Water Heater Thermal Storage
TOTAL
4.0 READINESS
5.0 TASKS
4 SEE• http• /www steffes com/off- peak heatmg/ets html
Table 3 -1
Peak Demand Reduction
Peak Demand Reduction
(kW /month)
260
175
0
55
490
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.
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.
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
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.
5.3 TASK 3 DEMAND RESPONSE EQUIPMENT TESTING
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
Number of
Participants
Data will be collected over a full year beginning October 1, 2010 and ending September 30, 2011.
5.4 TASK 4— DISPATCHABLE DEMAND RESPONSE
5.5 TASK 5— ECONOMIC EVALUATION
able 5 -1
;,Equipment Testing Matrix^
Participants in Control
Group
(0 hours /day impact)
Participants in Critical Peak
Hour Group
(1 hour /day impact)
Baseline Control Group 100 100 0
(no DR equipment)
1 Water Heater Only Group 1 400 1 30 1 370 1
Water Heater HAN Group (Utility 90 10 80
Controlled)
Water Heater HAN Group
(Customer Controlled) 0 0 0
Water Heater Thermal Storage 10 0 10
Group
TOTAL 1 600 1 140 1 460 1
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 penods. 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
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
450 volunteers who will have their appliances remotely cycled by the utility. The second group, the equipment
control group, will be 40 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
Cooperative Agreement No. 48475 Page 20
average baseline consumption. The result is a baseline consumption estimate adjusted for the charactenstics 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.
TABLE 8 -1 DELIVERABLES
Refined Plan Design
Status Reports
Description of Pilot Test Events
Testing Begins
Testing Ends
Economic Results
Customer Acceptance Results
9.0 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.
10.0 KEY PERSONNEL
Milestones Completion (Days after Award Execution)
30 days
Monthly (30, 60, 90, etc)
60 days
180 days
540 days
720 days
720 days
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
'R
a. 5
10.1 THE CITY OF PORT ANGELES
Figure 10 -1
Proposed Project Team
Organization Chart
City of Port Angeles
Larry Dunbar. Protect Manager
Philip Lusk, Principal Investigator
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
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 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.
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
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 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.
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 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.
Cooperative Agreement No. 48475 Page 25
UNIT 3 BUDGET
73.
nnge:Benefits.t4,4
Cost Category
er irect
Total Project BPA Cost BPA Cost
Costs Share Share
jilIPTIAMSYMEMSS
74,310
31-
22,290
iltVA-SatMWIP.afaielteklUtt;',e-teit
8,570 0% $0
WL
358,880 50% $179,440
raveI i&
Supplies (non-durable gopds)
80,560 100% $80,560
-§fifittitiVataiS.'E
107,000 100% $107,000
Total Direct Costir 1"- -654,1
$367;000
jndirectCpt
0
Total Indirect Costs s 0
Total Costs 654,110
2,500 0% $0
$0
$367,000
Cooperative Agreement No. 48475 Page 26