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5.1119 Original Contract
5-1119 Amendment No. 1 Contract No. 11ES -11306 AMENDMENT executed by the BONNEVILLE POWER ADMINSTRATION and CITY OF PORT ANGELES This AMENDMENT to the COMMERICAL AND INDUSTRIAL DEMAND REPONSE PILOT PROJECT AGREEMENT (Agreement) is executed by the UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE POWER ADMINSTRATION (BPA) and CITY OF PORT ANGELES (COPA). This Amendment No. 1 (Amendment) between BPA and COPA modifies the Agreement to add Exhibit C and D, to revise Exhibit B per Exhibit C, and make other changes agreed upon by the Parties. BPA and COPA agree: 1. EFFECTIVE DATE This Amendment shall take effect on the date executed by the Parties (Effective Date). 2. AMENDMENTS TO THE BODY OF AGREEMENT (a) For purposes of this Agreement, "COPA" refers to the City of Port Angeles. The City of Port Angeles is referred to as "Port Angeles" in Contract No. 09PB- 13093. "COPA" and "Port Angeles" may be used interchangeably in this Amendment and Exhibits. (b) Background and Purpose The fourth paragraph in the "Background and Purpose" section shall be deleted and replace by the following: "COPA's demonstration proposal (the Proposal) was submitted in response to BPA's summer 2010 solicitation for C &I DR pilot proposal and was selected by BPA for implementation. Since the Proposal's original submission, the scope of the project has been collaboratively revised by both Parties. A version of the revised proposal is attached hereto as Exhibit A. A supplemental scope of activities is attached hereto as Exhibit C. The June 1, 2012 letter from BPA to COPA, signed by Power Account Executive Shannon K. Greene and Transmission Account Executive Melanie M. Jackson, describing the reimbursement methodology for increases in demand and energy, costs resulting from the supplemental activities, is attached hereto as Exhibit D." (c) Section 2.1 Cost and Payment Section 2.1 shall be deleted and replaced by the following: "The Parties agree to the revised budget at outlined in Revision No. 1 to Exhibit B. Port Angeles expected total cost is $167,859.63, which including in -kind labor and cash matching. BPA's expected total cost is $343,550.26." (d) Section 2.3 C Section 2.3 C shall be deleted and replaced by the following: "In order to facilitate the efficient implementation of the Project, BPA has hired Global Energy Partners (Global), under procurement Contract No. 47383, to serve as its general contractor and project manager. The project management costs associated with Global will be paid by BPA." (e) Section 2.4 Structure and Roles (1) The second item in the first paragraph of Section 2.4 shall be deleted and replaced by the following: "co -fund implementation costs (see Revision No. 1 of Exhibit B);" (2) The third paragraph of Section 2.4 shall be deleted and replaced by the following: "During the term of the Agreement the Parties agree that COPA will: co -fund implementation costs through the agreed upon cost share (see Revision No. 1 of Exhibit B); participate in planning, implementation, and evaluation of the Project by providing ongoing support as needed, including but not limited to advice and technical and design assistance; recruit C &I pilot participant end -use customers for the Project as needed; and assist in Project execution as needed; especially in management of local pilot participant end -use customer relationships." (f) Section 3.2 Section 3.2 shall be re- titled "Pilot Participant End -Use Customer Agreements." Any reference to "end user" or "pilot participants" in the body of the agreement shall be replaced with "pilot participant end -use customer" to be consistent with naming convention in the exhibits to this agreement. 3. EXHIBIT REVISIONS (a) Exhibit B shall be deleted and replaced by the attached Exhibit B, Revision No. 1. Amendment No. 1, 11ES- 11306, City of Port Angeles 2 4. EXHIBIT ADDITIONS (a) Exhibit C, Supplemental Tasks Supplemental Tasks is added to this agreement as Exhibit C. (b) Exhibit D, Letter The June 1, 2012 letter from BPA to COPA, signed by Power Account Executive Shannon K. Greene and Transmission Account Executive Melanie M. Jackson, is added to this agreement as Exhibit D. 5. SIGNATURES The Parties have executed this Amendment as of the last date indicated below. CITY OF PORT ANGELES UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By OL--/ By Name Dan McKeen Name ee Hall Title City Manager Title Supervisory Public Utility Specialist Date (o/aall Z Date 6 /s /o2p o1- Amendment No. 1, 11ES- 11306, City of Port Angeles 3 Commerical Industrial DR Pilot Project Uses of Funds $563,035 83 9% 1.1.1.1.1.1.1.1.1.1.1•ti•• $8,980 1 1.1.1.1. .r. f. f. $14,060,2.1% $46,850 7.0% $15,000,2.2% $20,300 3.0% $2,500 0.4% Personnel In Fringe Benefits Ea Travel Equipment Incentives E Supplies Contractual e Other Direct 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 Commerical Industrial DR Pilot Project Sources of Funds $398,120 59.4% f.f.�•J•J 1 1 1.1.1• J•J•JY•JY•r 1.1.1.1.1.1.1• r•r•r•r•r•r•r•r•r• G 8.9% {•1.1.1.1'1.1.1.1.1• $6O 0 0O r•r•r•r•r•r•r•r r•r•r• ti•1.1.1.1.1.1.1.1.1.1.1. r.J• r•r•rJ•r•r•J•r r•r•J• 1.1.1.1.1.1.1.1.1.1.1.1.1.1.1 I I VSSr•r•r•r•r•r r r r r•r•r•r 1. 1.1.1.1.1.1.1.1.1.1.1.1.1.1.1. r•r•r•r•r•r•J•r r r r r r r r•r•r•r• 1.1.1. 1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1 r• r• r• r •r•r•r•r•r•r•r•r•r•r•r•r•r•J•r• r• r• r• r• r• r •r•r•r •rr•r•r•r•r•r•J•J•r•r• r {.1.1.1. 1.1.1..1.1.1.1.1.1.1.1.1.1.1 L Jtir�r1r1ryr1r1r1r1rM1f •r1r•r1f1r1r1f1f1r1r•r•r•r• r• r• l• t• l• J• l• t• t• J• J •J•JyJ•J•J•J•J•J•J•J�J1J•J•J1J• ref: f: f: f: fyr: f: f: f: f: f: r: ftil':1'�f:i:ltil:ftil� %tif:l~f:r:f 1.1.1.1.1.1.1.1.1.1.1.1 .1.1.1.1.1.1.1.1.1.1.1.1.1.1.1. •r•r•r•r•r•r•r•r•r•r•r•r r r r r r r r r r•r r•r•r•r• J: r: f: l: r: rtiJ: f: J: J~ J1J ~J~J ~J~J 1• L• 1. 1. 1. 1• L• L• 1. 1.1.1.1.1K•1•L•1.1.1.1.1K•1.1.1 :41. 11.11. {ti {t .11. {titiIVe 1: 1 r1?1 414 1: :�::r: ti {r1 rtirlr ti r1� 1.1 r1J 1.1.ViPPP.* .41.1 J 1�1r1f1 �rrf�rrrfrrrf ti rrff 144 rf 1f •l 11.1.: 1 .1.141.1.1.11 LI 1 e r•r•r•r•r•r•J.r r r r r r r r r r r r r•r•r•. f1 f1 j1 f1 f1 f1.1'PP f1 NII.I Pr;rtir;r;r; lyl~ r ~f 1.1. 1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.• J•J•r•r•J•J•r•r.r r r r•r•r•r• $72,390 1 0 1.1.1.1.1.1.1.1.1.1.1.1.1.1• r.r. J.J•J.J.J. J.J.J.J.J' $140,215 20.9% •1.1.5,•L ti•1.1.1. BPA IN Participant Cash El City Cash City In -Kind 1 1 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 City of Port Angeles Commerical Industrial Demand Response Pilot Project Budget Detail PERSONNEL TITLE Hours Cost /Hour Cost Kent Myers City Manager 18 75 769 1,360 Teresa Pierce Executive Communications Coodinator 40 27 407 1,100 Glenn A Cutler, PE Director, Public Works Utilities 60 62 727 3,760 Yvonne Ziomkowski Director, Finance 16 54.109 870 Larry Dunbar Deputy Director, Power Systems 80 43 950 3,520 Terry Dahlquist, PE Electrical Engineering Manager 120 46 666 5,600 Bob Williams Senior Meterman 160 40 719 6,520 Lisa Hainstock Apprentice Meterman 160 32 576 5,210 Richard G Hostetler Customer Services Manager 80 35 087 2,810 Tracy Rooks Utility Billing Specialist 40 22 385 900 Jim Harper IT Systems Coordinator 40 33 856 1,350 Trent Peppard Electrical Inspector 80 38 004 3,040 Robert Kajfasz Commercial Energy Analyst 160 29 954 4,790 Phil Lusk Power Resources Manager 160 37 597 6,020 TOTAL PERSONNEL 1,214 46,850 of Fringe FRINGE BENEFITS Units Personnel Benefits Cost Cost TOTAL FRINGE BENEFITS 1 30% 14,060 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 City of Port Angeles Commerical Industrial Demand Response Pilot Project Budget Detail IN -CITY TRAVEL Trips Miles/Trip Total Miles /Mile Cost Glenn A Cutler, PE 15 10 150 0 50 75 Larry Dunbar 30 10 300 0 50 150 Terry Dahlquist, PE 60 10 600 0 50 300 Bob Williams 200 10 2,000 0 50 1,000 Lisa Hainstock 200 10 2,000 0 50 1,000 Richard G Hostetler 50 10 500 0.50 250 Trent Peppard 25 10 250 0 50 125 Robert Kajfasz 150 10 1,500 0 50 750 Phil Lusk 120 10 1,200 0 50 600 IN -CITY TRAVEL SUBTOTAL 8,500 4,250 PORTLAND TRAVEL Trips Miles or Days Total per Cost perTrip Miles or Days Mile or Day COPA to Portland Milage 6 460 2,760 0 50 1,380 Portland Lodging 6 3 18 120 00 2,160 Portland M &EI 6 3 18 66 00 1,190 OUT -OF CITY TRAVEL SUBTOTAL 4,730 TOTAL TRAVEL 8,980 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 City of Port Angeles Commerical Industrial Demand Response PI EQUIPMENT AND INCENTIVES 1) Increasing Fiber Connectivity' Units Installed Equipment Cost /Unit City of Port Angeles 1 4,000 Interconnect to BPA City of Port Angeles 1 1,000 Water Treatment Plant Clallam County Courthouse 1 1,000 Clallam County Housing Authority 1 11,000 Nippon Paper Industries USA 1 1,000 North Olympic Library System 1 1,000 Olympic Medical Center 1 1,000 Port Angeles Hardwood 1 1,000 The Landing Mall 1 1,000 1) Increasing Fiber Connectivity Sub -Total 2) Integrated Load Management Equipment and Incentives (Not to Exceed) City of Port Angeles City Hall Central Boiler City of Port Angeles Water Treatment Plant Clallam County Courthouse Electric Boilers Clallam County Housing Authority Heat Pumps Nippon Paper Industries USA 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 North Olympic Library System Rooftop VAV Unit Olympic Medical Center Port Angeles Hardwood 2) Integrated Load Management Equipment and Incentives Sub -total 3) Fast DR /RE Integration Equipment Installation Sub Total City of Port Angeles Commerical Industrial Demand Response PI EQUIPMENT AND INCENTIVES (Continued) 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 Installed Equipment 4) Direct Load Control Units Cost/Unit ZigBee 0 0 ZigBee DR Controller <30a) 0 0 Relay DR Controller >30a) 0 0 In- Business Display 0 0 In- Business Network 0 0 Data Presentment Service 0 0 4) Direct Load Control Equipment Sub -Total 5) Dispatchable Demand Response Sub -Total TOTAL EQUIPMENT AND INCENTIVES 1) Participating customers will be responsible for providing a 0% cost -share of the rec be responsible for 100% of the recurring costs following project conclusion. 1) Fast DR/RE Integration Equipment Installation Cost -Share to be Provided by Catal Landings Mall. 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 ilot Project Budget Detail Recurring Costs Total Cost 1,125 5,125 1,125 2,125 1,125 2,125 1,125 12,125 1,125 2,125 1,125 2,125 1,125 2,125 1,125 2,125 1,125 2,125 32,125 15,000 50,000 15,000 15,000 50,000 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 15,000 50,000 50,000 260,000 120,000 ilot Project Budget Detail 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 Recurring Costs Total Cost 0 0 0 0 0 0 0 0 50,910 463,035 urring costs during the project and will lyst Energy Technologies and The 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 Port Angeles Commercial and Industrial Demand Response Pilot Project Budget Detail CONTRACTUAL EES Consulting Estimated Hours tion Smit Tarp N Total Task Task Description p yquist O'Donnell Hours TOTALS Billing Rates /hour) $155 $145 $140 $135 1 Administrative Review Metering Data to be Collected 4 8 12 $1,740 Meetings 8 8 8 24 $3,520 5 Economic Evaluation Project Management Review 32 0 32 $4,960 Data Review Manipulation 8 40 48 $6,520 Modelling 60 60 $8,400 Analysis 32 32 $4,480 Reporting 8 32 40 $5,720 Presentation of Results 8 16 24 $3,480 Total Hours 60 8 164 40 272 TOTAL LABOR $38,820 CONTRACTOR PORTLAND TRAVEL Person Trips Tickets/Trip Total Tickets /Ticket Cost Portland Airfare 2 1 2 200 00 400 Portland Lodging 2 1 2 120 00 240 Portland Transportation 2 1 2 5 50 15 Portland M &IE 2 1 2 66 00 135 PORTLAND TRAVEL SUBTOTAL 790 CONTRACTOR PORT ANGELES TRAVEL Person Trips Miles/Trip Total Miles /Mile Port Angeles Mileage 2 180 360 0 50 180 Port Angeles Ferry 2 2 4 43 50 174 Portl Angeles Lodging 2 2 4 98 00 392 Port Angeles M &IE 2 2 4 61 00 244 PORT ANGELES TRAVEL SUBTOTAL 990 CONTRACTOR TRAVEL TOTAL 1,780 TOTAL CONTRACTUAL 20,300 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 OTHER DIRECT COSTS Units 1) C &I DR Communications Plan Implementation 1 1) Ad Placement 1 TOTAL OTHER DIRECT COSTS 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 Cost/Unit Cost 7,500 7,500 7,500 7,500 15,000 11 ES- 11306, Port Angeles Exhibit A, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Agreement Executed 02 08 2011 Revision No. 1, Exhibit B City of Port Angeles Commercial and Industrial Demand Response Pilot Project Budget This revision updates the Section 1 per mutual agreement with the City of Port Angeles and the Supplement to Exhibit B in Exhibit C of this agreement. 1. BUDGET Total Proposed Proposed Project BPA Cost BPA Cost Category Costs Share Costs Personnel See Personnel Detail (section 2) $46,850 Fringe Benefits See Personnel Detail (section 3) $14,060 Travel See Travel Detail (section 4) $8,980 I 0% $0 Equipment Incentives See Equipment Incentives Detail (section 2) $375,919.89 I 56% $193,250.26 Supplies (non durable goods) section 2) $2,500 I 0% $0 Contractual See Contractual Detail (section 2) $20,300 I 100% $20,300 Other Direct Costs (permits as applicable, marketing materials, and other direct costs not noted elsewhere) See Other Direct Cost Detail (section 2) $15,000 I 0% $0 OpenADR Platform $130,000 100% $130,000 Total Direct Costs $582,610 $343,552 Indirect Costs (e.g. administrative costs /overhead) N/A $0 Total Indirect Costs $0 $0 Total Costs $613,609.89 $343,550.26 SOURCES OF FUNDS USES OF FUNDS BPA $343,550.26 Personnel $46,850.00 Pilot Participant End -Use Customer Cash /In -Kind $102,200.00 Fringe Benefits $14,060 00 City of Port Angeles Cash /In -Kind $167,859 63 Travel $8,980.00 Equipment TOTAL $613,609 89 Incentives 375,919 89 Supplies $2,500 00 Contractual $20,300.00 Other Direct $15,000.00 11ES- 11306, Port Angeles 1 of 6 BPA Cost -Share 55.99% OpenADR $130,000.00 TOTAL $613,609.89 2. PERSONNEL COSTS PERSONNEL TITLE Hours Cost /Hour Cost Dan McKeen Interim City Manager 18 $75.769 $1,360 Teresa Pierce Executive Communications 40 $27.407 v1,100 Coordinator Glenn A. Cutler, PE Director, Public Works 60 $62.727 $3,760 Utilities Byron Olson Interim Director, Finance 16 $54.109 $870 Larry Dunbar Deputy Director, Power y 80 Systems $43.950 v3,520 Terry Dahlquist, PE Electrical Engineering 120 Manager $46.666 $5,600 Bob Williams Senior Meterman 160 $40.719 $6,520 Lisa Hainstock Apprentice Meterman 160 $32.576 $5,210 Richard G. Hostetler Customer Services 80 Manager $35.087 $2,810 Tracy Rooks Utility Billing Specialist 40 $22.385 $900 Jim Harper IT Systems Coordinator 40 $33.856 $1,350 Trent Peppard Electrical Inspector 80 $38.004 $3,040 Robert Kajfasz Commercial Energy 160 $29.954 Analyst $4,790 Phil Lusk Power Resources Manager 160 $37.597 $6,020 TOTAL PERSONNEL 1,214 $46,85 0 3. FRINGE BENEFITS COSTS FRINGE BENEFITS Units of Fringe Benefits Personnel Cost Cost TOTAL FRINGE 1 30% $14,060 BENEFITS 4. TRAVEL COSTS s Miles/Trip Total IN -CITY TRAVEL Tri P p Miles /Mile Cost Glenn A. Cutler, PE 15 10 150 $0.50 $75 Larry Dunbar 30 10 300 $0.50 $150 Terry Dahlquist, PE 60 10 600 $0.50 $300 11ES 11306, Port Angeles 2 of 6 Revision No.1, Exhibit B, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Budget Bob Williams 200 10 2,000 $0.50 $1,000 Lisa Hainstock 200 10 2,000 $0.50 $1,000 Richard G. Hostetler 50 10 500 $0.50 $250 TrentPeppard 25 10 250 $0.50 $125 Robert Kajfasz 150 10 1,500 $0.50 $750 Phil Lusk 120 10 1,200 $0.50 $600 IN -CITY TRAVEL SUBTOTAL 8,500 $4,250 Miles or Days Total per PORTLAND TRAVEL Trips Miles or Mile or Cost per Trip Days Day COPA to Portland 6 460 2,760 Mileage $0.50 $1,380 Portland Lodging 6 3 18 $120.00 $2,160 Portland M &EI 6 3 18 $66.00 $1,190 OUT -OF CITY TRAVEL SUBTOTAL $4,730 TOTAL TRAVEL $8,980 5. EQUIPMENT COSTS FY11 FY11 FY12 FY11 FY12 Exhibit B MOD5 MOD5 MOD5 EQUIPMENT AND Original Revised Revised Revised INCENTIVES Estimated Exhibit B Estimated Estimated (Not to Exceed) Total Cost Estimated Participant's BPA's (Funded) Total Cost Equipment Equipment Total Cost Total Cost 1) Increasing Fiber Connectivity) City of Port Angeles City Hall (Vern Burton $5,125.00 $2,460.00 $984.00 $1,476.00 #2) City of Port Angeles Water Treatment Plant $2,125.00 $5,401.45 $2,160.58 $3,240.87 Clallam County Courthouse $2,125.00 $2,460.00 $984.00 $1,476.00 Clallam County $12,125.00 $20,734.00 $8,293.60 $12,440.40 Housing Authority 11ES- 11306, Port Angeles 3 of 6 Revision No.1, Exhibit B, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Budget Nippon Paper Industries USA $2,125.00 $1,965.00 $786.00 $1,179.00 North Olympic Library $2,125.00 System $2,460.00 $984.00 $1,476.00 Olympic Medical Center $2,125.00 $2,460.00 $984.00 $1,476.00 Port Angeles Hardwood $2,125.00 $2,460.00 $984.00 $1,476.00 The Landing Mall $2,125.00 $2,460.00 $984.00 $1,476.00 1) Increasing Fiber Connectivity $32,125.00 $42,860.45 $17,144.18 $25,716.27 Sub Totals 2) Integrated Load Management Equipment and Incentives FY11 FY11 FY12 FY11 FY12 Exhibit B MOD5 MOD5 MOD5 EQUIPMENT AND Original Revised Revised Revised INCENTIVES Estimated Exhibit B Estimated Estimated (Not to Exceed) Total Cost Estimated Participant's BPA's (Funded) Total Cost Equipment Equipment Total Cost Total Cost City of Port Angeles Water Treatment Plant $50,000.00 $8,669.29 $3,467.72 $5,201.57 Clallam County Courthouse $15,000.00 19,672.00 $7,868.80 $11,803.20 Electric Boilers Clallam County Housing Authority $15,000.00 $14,000.00 $5,600.00 $8,400.00 Heat Pumps Nippon Paper Industries USA $50,000.00 $0.00 $0.00 $0.00 Nippon Paper Industries USA $0.00 $31,000.00 $31,000.00 $0.00 Products 2,3,4 North Olympic Library System $15,000.00 $14,432.57 $5,773.03 $8,659.54 Rooftop VAV Unit Olympic Medical Center $50,000.00 $31,143.32 $12,457.33 $18,685.99 Port Angeles Hardwood $50,000.00 $27,142.26 $10,856.90 $16,285.36 11ES- 11306, Port Angeles 4 of 6 Revision No.1, Exhibit B, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Budget 2) Integrated Load Management Equipment and $260,000.00 $161,059.44 $83,023.78 $78,035.66 Incentives Sub Totals 3) Fast DR/EE Integration Equipment $127,000.00 $172,000.00 $82,500.00 $89,500.00 Installation Sub Total 4) Direct Load Total Cost Control ZigBee $0.00 ZigBee DR Controller $0.00 <30a) Relay DR Controller $0.00 >30a) In- Business Display $0.00 In- Business Network $0.00 Data Presentment Service $0.00 4) Direct Load Control Equipment $0.00 $0.00 Sub -Total 5) Dispatchable Demand Response /Persistence $50,910.00 $0.00 $0.00 $0.00 of Assets Sub -Total Correction: possible prior rounding error (1.67) v(1.67) (1.67) TOTAL EQUIPMENT $470,035.00 $0.00 $182,667.96 $193,250.26 AND INCENTIVES BPA's TOTAL EQUIPMENT AND INCENTIVES Costs $277,820.00 $375,918.22 $193,250.26 (Not to include: EWEB) 11ES- 11306, Port Angeles 5 of 6 Revision No.1, Exhibit B, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Budget Correction to MOD3 where Equipment should have been calculated as (Total 272,821.00 Equip Incentives minus Task 3)( multiplied by 60 plus 67,000 (4.999.00) BPA's TOTAL EQUIPMENT AND INCENTIVES Costs 272,821.00 193,250.26 (Not to include: EWEB) 1) Participating customers will be responsible for providing a 0% cost -share of the recurring costs during the project and will be responsible for 100% of the recurring costs following project conclusion. 2) Fast DR /RE Integration Equipment Installation Cost -Share to be Provided by Catalyst Energy Technologies and The Landings Mall. 6. OTHER DIRECT COSTS Units Cost /Unit Cost 1) C &I DR Communications Plan Implementation 1 $7,500 $7,500 1) Ad Placement 1 $7,500 $7,500 TOTAL OTHER DIRECT COSTS $15,000 7. REVISIONS All revisions to this exhibit shall be made by mutual agreement between the parties. 11ES- 11306, Port Angeles 6 of 6 Revision No.1, Exhibit B, City of Port Angeles Commercial and Industrial Demand Response Pilot Project Budget EXHIBIT C SUPPLEMENTAL TASKS BPA and COPA are under no obligation to perform the tasks in this Exhibit C. Performance by BPA, COPA and Nippon will be considered acceptance of the relevant portion of this exhibit. If such performance results in an increase in COPA's energy and demand, BPA will be held responsible for monetary reimbursement to COPA as defined in Exhibit D of this Agreement. The supplemental tasks in Exhibit C correspond with Modification #005 to Contract #00047383 between BPA and Global Energy Partners LLC. Table of Contents Section Page 1. Project Description 3 1.1 General Description 3 1.2 Project Rationale 3 1.3 Goals and Objectives 4 1.4 End -User Impact 4 1.5 Incentive 4 1.6 Limitation on BPA's Reimbursement 4 1.7 Persistence of Assets 5 2. Proposed Technology 5 2.1 Product 1 Proposed technology 5 2.2 Products 2, 3 and 4 Proposed technology 6 3. Expected Impact to Capacity 8 4. Readiness 8 5. Supplement Tasks 8 5.1 Task 1- Administration 9 5.2 Task 2A Development of OpenADR Platform (DRBizNet Demand Response Protocol) 9 5.2.1 Task 2B Integration of DRBizNet and Distributed Control System (DCS) 7 5.3 Task 3A DRBizNet Demand Response Equipment Installation and Testing Product 1 10 5.3.1 Task 3B DRBizNet Demand Response Equipment Installation and Testing- Products 2, 3, 4 8 6. Supplement Timeline 12 7. Measurement and Verification 13 8. Considerations 13 9. Key Personnel 14 9.1 Nippon Paper Industries 15 9.2 The City of Port Angeles 15 9.3 Bonneville Power Administration 15 9.4 Global Energy Partners 15 9.5 UISOL 16 10. Budget (SUPPLEMENT TO EXHIBIT B) 16 11ES- 11306, Port Angeles 1 of 16 List of Tables TABLE NO. TITLE PAGE NO. Table 2 -1 BPA Products and expected DRBizNet data transfer points 3 Table 2 -2 BPA Products and expected event notification data points 4 Table 3 -1 Maximum Demand Increase and Decrease by product type 5 Table 5 -1 Demand Response Resource Summary 7 Table 6 -1 Project Timeline major activities by BPA fiscal year 9 Table 9 -1 Nippon DR Pilot Project team contact list 10 11ES- 11306, Port Angeles 2 of 16 Exhibit C, Supplemental Tasks 1. PROJECT DESCRIPTION 1.1 General Description On February 8, 2011, the City of Port Angeles (COPA) and the Bonneville Power Administration (BPA) approved the Commercial and Industrial Demand Response Pilot Project Proposal (C &I Pilot Project). This document is intended to supplement the C &I Pilot Project Agreement. Unless otherwise stated, this Supplement does not replace any part of the C &I Pilot Project Agreement. 1.2 Project Rationale In late 2010 and early 2011, COPA and its largest customer, Nippon Paper Industries USA, LLC (Nippon), engaged in two distinct work efforts associated with the execution of demand response strategies. One of these work efforts is the C &I Pilot Project. The second effort, led by members of BPA's Cross Agency Demand Response Team, is exploring Nippon's ability to manipulate production- sensitive equipment to provide a load building resource through COPA to assist $PA in its efforts to integrate wind power with the regional electrical grid. Initial testing indicates that the load building resource at Nippon can likely provide support to BPA's efforts to address the wind integration challenge. However, initial testing has identified what production equipment can respond, but has yet to determine which load building resources can be fully automated, which load- building resources require supervision or "semi automation," and which load building resources will require human intervention. In addition, there is a need to identify a transparent communication architecture that will provide all stakeholders with real -time visibility of the available resources in the time they are needed, real -time feed -back of the load building responses, and an automated signal (end -to- end) to dispatch the resources. Further, initial testing did not address how the load resources might also be used to further the objectives of the C &I Pilot Project which are to: 1) support COPA's ability to manage rising demand charges in post -2011 rate periods; 2) address pending transmission constraints on the transmission system from BPA into the COPA service territory. There is also a need to incorporate an additional goal of supporting BPA's ability to address capacity constraints through the automated dispatching (load shedding and load building) of loads in COPA's territory. These additional steps are some of the steps necessary to translate the initial tests into an end -to -end proof -of- concept. Ultimately, it is likely further commercial demonstration may be needed to assess whether commercially viable product(s) for the parties involved could be developed and implemented. In March 2011, CO PA and BPA agreed to integrate this second work effort into the C &I Pilot Project in order to leverage the technology infrastructure being used in the C &I Pilot Project. Through this Supplement, the participants seek to enable Nippon's single web -based control and dispatch 11ES- 11306, Port Angeles Page 3 of 16 Exhibit C, Supplemental Tasks portal, via the Utility Integration Solutions (UISOL) DRBizNet© platform. Additionally, integrating both demand response (DR) efforts will reduce the staff time of COPA and Nippon in support of both projects. 1.3 Goals and Objectives The goal of the Supplement is to enable and test Nippon's ability to provide multiple capacity products to COPA for potential sale to BPA in the future, including: (1) Product 1: Voluntary reduction of non production related electrical loads with a day -ahead notice; (2) Product 2: Voluntary reduction of production related electrical loads with a 10- minute notice; (3) Product 3: Voluntary reduction of production related electrical loads with a day -ahead notice; and (4) Product 4: Voluntary increase of production related electrical loads with a 10- minute notice; 1.4 End -User Impact Nippon has stated their willingness to decrease production and non production- related loads and to increase production related loads. Some loads are not available for DEC (i.e. load increase), for instance refiner line 3. Additionally, all loads specified in Table 3 -1 and Table 5 -1 as INC resources (i.e. load reduction) including each refiner line, are available for load reduction. In total, up to 36 MW of load increase and up to 41 MW of load reduction are being made available by Nippon. The resource impact of this Supplement to Nippon is in -kind labor for project coordination and programming of controls and data system. This project is designed to minimize any production impact to Nippon or revenue impact to COPA. 1.5 Incentive This Supplement does not provide any cash incentive payments to COPA or Nippon. COPA and Nippon shall be responsible for in kind costs for products 2 -4 as outlined in section 10 of this supplement. 1.6 Limitation on BPA's Reimbursement of Power and Transmission Costs After the end of each calendar month, BPA shall use the meter data from COPA and Nippon, as identified in Section 7, Measurement and Verification, from the prior month to determine the actual increase in COPA's load resulting from BPA- initiated test events under Product 4 as described in section 5.3.1 of this Supplement. BPA shall use, unless otherwise agreed to by the Parties, the immediately prior hourly average load to establish the baseline by which to measure the increase in load. The Project Team may evaluate and agree upon the application of alternate baseline methodologies. 11ES- 11306, Port Angeles Page 4 of 16 Exhibit C, Supplemental Tasks BPA shall issue a credit to COPA's monthly power and transmission bill for charges related to increased power taken by COPA and provided to the Nippon refiner load as a part of Product 4 of this Supplement. The billing and payment provisions in section 16 of COPA's Regional Dialogue Power Sales Agreement No. 09PB -13093 shall govern. BPA shall issue credit to COPA only for those power deliveries taken by COPA pursuant to this Supplement and applied to Nippon's increased refiner load. 1.7 Persistence of Assets No additional equipment will be installed for this Supplement. Any software installed for the Supplement will remain in place after the completion of the project, with the potential exception of the demand response management system (DRMS) used by COPA and BPA to dispatch loads for the C &I Pilot Project and this Supplement. After the conclusion of the C &I Pilot Project and this Supplement, BPA may choose to release a Request for Proposal (RFP) for competing solutions before executing a long -term contract for any DRMS in the post- August 2012 period. To minimize additional costs associated with the integration of a different DRMS platform, the C &I Pilot Project and this Supplement will require Open Automated Demand Response (OpenADR) communication protocols. This will enable Nippon, COPA, and BPA to leverage the investments made during this project for use by any DRMS chosen in the post- August 2012 period. The current plan is that a COPA -based SCADA system will be programmed to enable DR event notification to participants via the fiber optic network. In the future, COPA seeks to directly communicate via its fiber optic network with its DR program participants. The fiber optic network will provide a redundant scheduling portal in the event the DRMS portal becomes unavailable. 2. PROPOSED TECHNOLOGY 2.1 Product 1 Proposed technology Product 1 provides a voluntary command to the Nippon Distributive Control System (DCS), which will require that a secure client device be employed in the DRMS. This secure client device polls the UISOL server at one minute increments to check on the event notification status. This differs from products 2, 3, and 4 in terms of communicating events. For product 1 a pre- notification email will be sent to the customer prior to the event. This will allow the customer enough time to opt out of the event if necessary. At the time the event is scheduled the UISOL DRBizNet platform will publish the event status. Client devices will be installed at Nippon such as the GridLink Industrial Open ADR Controller (Gridlink device). These devices will be used to close relay contacts at the clarifier aerator motors and various non critical 11ES- 11306, Port Angeles Page 5 of 16 Exhibit C, Supplemental Tasks pumps. This will provide the ability to shut these systems down remotely. Dispatch instructions will be sent to the mill DCS systems. This equipment will be sub metered and the metering data will be acquired by the DCS and channeled through the GridLink device to DRBizNet. 2.2 Products 2, 3 and 4 Proposed technology (a) Data Capture at Nippon Facility Nippon will develop algorithms and program their Plant Information (PI) system to collect and process the necessary data (available kW, duration of INC /DEC opportunity, and lead time requirements) from Nippon's DCS for each product for reporting to the UISOL server. Nippon's PI system will be the single source to send this data at an agreed frequency to the UISOL server using Extensible Markup Language (XML). (b) UISOL DRBizNet UISOL will develop a customized interface between DRBizNet and the Nippon PI System. This interface will acquire and display the data sent by the PI at no greater than one minute intervals. Because the data to be transferred has not been finalized by the stakeholders, the following data is suggested as a starting point: Table 2 -1 BPA Products and DRBizNet data transfer points Product 2 Product 3 Product 4 Load Decrease Available (kW) Load Decrease Available (kW) Load Decrease Available (kW) Duration available (hrs) Duration available (hrs) Duration available (hrs) Load Increase Available (kW) Load Increase Available (kW) Load Increase Available (kW) Duration available (hrs) Duration available (hrs) Duration available (hrs) Continuous meter /sub -meter data Continuous meter /sub -meter data Continuous meter /sub -meter data (kW) (kW) (kW) Availability status Availability status Availability status Opt In status Opt In status Opt In status The data in Table 2 -1 and Table 2 -2 will be aggregated values calculated from the boiler and the refiner lines. (a) UISOL Event Notification The UISOL interface will be capable of sending requests directly to COPA and Nippon via internet access and will be reviewed by Nippon personnel who will make the final decision as to what action, if any, will be implemented. Because the data to be transferred has not been finalized by the stakeholders, the following data is suggested as a starting point: 11ES- 11306, Port Angeles Page 6 of 16 Exhibit C, Supplemental Tasks Table 2 -2 BPA Products and expected event notification data points Product 2 Product 3 Product 4 Dispatch Increase Request (kW) Dispatch Increase Request (kW) Dispatch Increase Request (kW) Event Duration Requested Event Duration Requested Event Duration Requested Cost per kW Cost per kW Cost per kW Dispatch Decrease Request (kW) Dispatch Decrease Request (kW) Dispatch Decrease Request (kW) Event Duration Requested Event Duration Requested Event Duration Requested Cost per kW Cost per kW Cost per kW Event ID Event ID Event ID Event Revision Number Event Revision Number Event Revision Number Event Status Event Status Event Status Operation Mode Operation Mode Operation Mode Notification Time Notification Time Notification Time Start Time Start Time Start Time End Time End Time End Time Availability status Availability status Availability status Opt In status Opt In status Opt In status These requests can be intelligently processed in the PI system at Nippon to translate simple kW INC /DEC into requests for specific equipment to be impacted based on pre- determined algorithms. These algorithms may include inputs such as cost effectiveness, equipment response time, plant schedules, etc. 2.3 Communication Platform UISOL's DRBizNet© will be the communication platform for the Supplement. 2.4 Integration Software UISOL will use e- terraControl software to integrate DRBizNet with the remote utility and customer DCS systems. Currently, remote utility and customer sites use local data collection systems (generally SCADA or DCS) to collect the required information about dispatchable resources. The integration of e- terraControl software will allow DRBizNet to interface with these remote utility and customer systems, and extract and transfer data so that it is available for presentation within the DRBizNet platform. This solution also provides a FAST DR `push' function to communicate demand response instructions in real -time from the DRBizNet user's control platform. 2.5 Automation Platform The existing automation platform at Nippon is an Emerson Delta V DCS. The Supplement will leverage this control technology to automate, where possible, Nippon's ability to respond to BPA's dispatches. The automation of DEC and INC will provide Nippon the ability to respond to these dispatches in real -time and provide the ramp rates required for FAST -DR. 11ES 11306, Port Angeles Page 7 of 16 Exhibit C, Supplemental Tasks 3. EXPECTED IMPACT TO CAPACITY Each Nippon product type and the DEC and INCs maximum load response from Nippon are outlined in Table 3 -1. Table 3 -1 Maximum Demand DEC and INC by product type Table 3 -1 Maximum Demand DEC and INC Product Type Maximum Load Response (kW) Product 1 Up to 120 kW in 30 kW increments and 55 kW Product 2 18 MW,;36 MW; 41W Product 3 18 MW; 36 MW; 41MW Product 4 2 MW; 18 MW; 36 MW if available based on timing TOTAL Maximum up to 36 MW Maximum down to 41 MW 4. READINESS Products 2- 4 intend to change operational conditions of the refiner lines, which are the major loads in the pulping plant at Nippon's mill. Products 2 -4 will not change operational conditions of the paper making side of the mill. The mill pulping loads are three refiner lines: (a) two main lines (Line 2 and 3) that run at a nominal 18 MW each, and (b) a smaller rejects line (Line 1) that runs at a nominal 5 MW. This Supplement seeks to: (a) document the response time for a DEC or INC to the refiner lines, (b) demonstrate the responsiveness in less than 10 minutes (as appropriate to the products only products 2 4 require 10- minute response time), (c) understand the interplay between the MW amount of capacity available and the duration (in minutes) that it is available given that the storage capability of the pulp tanks is finite, and (d) demonstrate that a fixed MW amount of INC and DEC for a fixed duration of time can be communicated transparently in real -time. Pulp storage tanks can be either filled in a load increase event, or drained in a load decrease event. This Supplement intends to use the existing pulp storage tanks.' This Supplement also seeks to use existing controls and data gathering systems (Nippon's DCS and PI systems) at the mill to provide DR availability figures to the control web portal —this would include available MW of load increase or decrease and duration in hours. The mill currently has the controls and data systems, including metering, in place to collect the desired electronic data. 5. SUPPLEMENT TASKS This Section 5, Supplemental Tasks, only applies to Nippon under this Supplement. All other C &I Pilot Project participants will follow Section 5 as specified in the January 20, 2011 proposal incorporated in the February 8, 2011 Commercial and Industrial Demand Response Pilot Project Agreement. The following tasks A more robust DR resource from the pulp mill, one that can deliver the maximum DR performance for longer periods of time, would require additional pulp storage tanks. The installation of additional tanks is not part of this Supplement 11ES- 11306, Port Angeles Page 8 of 16 Exhibit C, Supplemental Tasks accomplish the goal of enabling, testing, and evaluating Nippon's ability to provide each of the four capacity products identified above. 5.1 Task 1- Administration COPA will continue to provide overall coordination of the C &I Pilot Project as specified in the January 20, 2011 proposal. COPA will also provide overall coordination of this Supplement. In addition, Global will support this Supplement by assisting COPA and its customers, including but not limited to Nippon, to: Support UISOL system development, including the collection and compilation of metering and other data (as later specified) for evaluation task; Support Nippon controls installation and programming; Ensure satisfactory training is provided to BPA and COPA for DRBizNet; Ensure Nippon receives adequate training on the controls strategy and system operation; Report lessons learned from pilot demonstration, including areas that require further testing. Regular status reports on this Supplement will take place in bi- weekly conference calls held by the Supplement participants. 5.2 Task 2A Development of OpenADR Platform (DRBizNet- Demand Response Protocol) Task 2A only applies to Nippon under this Supplement Events will be categorized according to COPA's system characteristics, but they will likely occur during the winter heating season. The specific frequency and time period for the events will be further defined in conjunction with the BPA and the pilot project participants. There is also an opportunity for the BPA to schedule DR events that can be determined in conjunction with COPA upon project award: Task 2 includes developing load reduction strategies for each participating customer, depending on available resources. Different protocol may be designed based on curtailment events. For customers where integrated load management is possible, DR resources will consist of process rescheduling and /or voluntary load curtailment. BPA will provide an OpenADR platform that will be used for the following purposes: Provide a web portal for managing programs, resources, events, and performance View and manage specific resource portfolio, events, meter data, and performance calculations Send OpenADR, event notifications via OpenADR 11ES- 11306, Port Angeles Page 9 of 16 Exhibit C, Supplemental Tasks Send courtesy event notifications via email and SMS Monitor device availability and event participation The OpenADR platform will communicate with all pilot participants via an OpenADR gateway that will be installed at each of the participant's facilities. Testing of this platform by Global is scheduled to begin in the first quarter of Fiscal Year 2012 consistent with Table 6.1 below. The scope of Task 2A is differentiated from Task 2B by the non production related nature of the devices controlled under Product 1 (see Section 1.3 of this Supplement for the list of Products) and the use of a GridLink device to provide for communication with the OpenADR platform. (a) Task 2B Integration of DRBizNet and Distributed Control System (DCS) The OpenADR platform being developed as part of the C &I Pilot Project will also accommodate communications from the systems that control Nippon's production related equipment, including its Distributed Control System (DCS) and /or PI systems, for use in this Supplement. Nippon will program their PI system to draw the necessary data from the sites' DCS. PI will be programmed to perform the calculations necessary to manipulate the data to yield available kW values, lead time requirements and any other data that is required by BPA to dispatch events. PI will send this data via a web -based portal at an agreed frequency to the UISOL server via XML. UISOL will develop a customized interface between DRBizNet and the Nippon web -based portal. This interface will acquire the data at no greater than a 1 minute interval and display the data points in DRBizNet. This XML pathway to UISOL's customized interface will serve as the conduit for communication with the OpenADR platform for products 2, 3, 4 under this Task 2B. (See Section 1.3 of this Supplement for the list of Products) 5.3 Task 3A DRBizNet Demand Response Equipment Installation and Testing- Product 1 For Nippon only, Task 3A replaces the original Task 3 as specified in the C &I Pilot Project. The scope of Task 3A is differentiated from Task 3B by the non production related nature of the devices controlled under Product 1 (see Section 1.3 of this Supplement for the list of Products) and the use of a GridLink device to provide for communication with the OpenADR platform. For Product 1, a client device such as the GridLink device will be installed and relay contacts on the unit will be wired into an existing DI card (assuming spare capacity is available) at the plant DCS. The clarifier aerator motors and other non production critical pump motors will be wired into the DCS and current transformers (CTs) added to sub meter the demand for this equipment. CTs will be wired into the DCS and transferred to the GridLink device by wiring a DCS analogue output to the GridLink device. 11ES- 11306, Port Angeles Page 10 of 16 Exhibit C, Supplemental Tasks Tests will need to be conducted to prove communications from DRBizNet to the end devices via the GridLink device and the plant DCS. The metering capability will need to be tested to prove the end devices are being correctly metered and the data is being transferred correctly. Local data logging will be used to verify the values displayed on DRBizNet. Table 5 -1 Demand Response resource by type of equipment, product, and load response Table 5 -1 Demand Response Resource Summary Type of Equipment Products to be Enabled Maximum Load Response (kW) GridLink device Product 1. Other pump motors 55 kW and clarifier aerator motors 0 -120 kW TOTAL 175 kW The remaining equipment and dispatch protocols for this Task 3A remain as specified in the January 20, 2011 proposal. 5.3.1 Task 3B DRBizNet Demand Response Equipment Installation and Testing- Products 2, 3, 4 Task 3B is focused on the equipment installation and testing for products 2, 3 and 4. No additional hardware installation and testing are required under this Supplement to support, manage and deploy demand response from Products 2, 3, or 4. These products will rely on programming of existing systems. Equipment will only be adjusted by plant personnel after reviewing dispatch notifications. Correct transmission of data values and metering data will be tested by comparing DRBizNet values with plant DCS readings. During the first 60 days of this Supplement (see Table 6 -1), the Supplement participants (see section 9) will collaboratively develop a strategy for Products 2, 3, and 4 to: guide the scheduling of events: o initial tests will be designed to successfully test each product individually: each product test regime will begin with approximately 3 sequentially scheduled, announced tests until Supplement participants agree that the product has achieved satisfactory performance or that satisfactory performance cannot be demonstrated the 10- minute notice products (Products 2 and 4 only) will then proceed to approximately 3 sequentially scheduled, though unannounced, tests until Supplement participants agree that the product has achieved 11ES- 11306, Port Angeles Page 11 of 16 Exhibit C, Supplemental Tasks satisfactory performance or that satisfactory performance cannot be demonstrated o subsequent tests will then be scheduled to test the successful sequential commitment for day -ahead vs. 10- minute notice products provide direction regarding which party will initiate which events throughout the course of the Supplement: o the day -ahead notice products (Products 1 and 3) will likely be initiated by and committed to COPA, and o the 10- minute notice products (Products 2 and 4) will commit only if the resource is not committed to a day -ahead product and will likely be initiated by BPA, after consultation with COPA; determine the most appropriate baseline(s) for study (to calculate load response at Nippon) during the course of the Supplement: o the day -ahead notice products (Products 1 and 3) baseline is expected to be the pre scheduled day -ahead amount committed to; o the 10- minute notice products (Products 2 and 4) baseline is expected to be the measured load a number of minutes immediately prior to the event notice; capture, distill, and report relevant data to Supplement participants (and, ultimately, the general public through a final project report). As needed, the COPA and BPA will jointly establish a maximum number of demand response events that will be initiated and, as needed, delineate who will initiate the events and the maximum and minimum durations of any single event. 6. SUPPLEMENT TIMELINE The project timeline is outlined on a quarterly basis in Table 6 -1. The timeline, presented on a BPA's fiscal year, will be further refined during the planning and design phase 11ES 11306, Port Angeles Page 12 of 16 Exhibit C, Supplemental Tasks Table 6 -1 Supplement Timeline major activities by BPA fiscal year Table 6 -1 Fiscal Year (Oct.— Sept.) Project Timeline Task Product(s) 2011 2012 Q3 Q4 QI Q2 Q3 Q4 (Apr -Jun) (Jul -Sep) (Oct -Dec) (Jan -Mar) (Apr -Jun) (Jul -Sep) Planning and Design Product 1 Products 2,3,4 Develop dispatch strategy Product l (Who, when, duration, etc) Products 2,3,4 Equipment and Controls Product 1 Installation and Products 2,3,4 Commissioning UISOL platform Product 1 v I 0 v2 0 programming testing Products 2,3,4 (Oct) (early Q2) Meter integration Product 1 Products 2,3,4 Product enablement testing Product 1 (dispatching of events) Products 2,3,4 sequential, by overlapping products product Evaluation /reporting of Product 1 event -based evaluation (M &V) conclusions Results Products 2,3,4 event -based evaluation (M &V) conclusions 7. MEASUREMENT AND VERIFICATION For Product 1, a sub -meter will be installed on all controlled loads. Load profile data from these sub meters will be passed through a GridLink device and will send data to the UISOL server. The loads to be controlled are generally on most of the time so seeing a load reduction from the metering should be fairly robust. For Products 2, 3, and 4, existing electric meters on the refiner motors will be used to measure DR performance. The meters on the refiners do not capture the entire electric load on each refiner line but accounts for the bulk of that load, above 90 -95% of total refiner load, per refiner. This means that not all of the changed demand will be metered which makes the resulting change in kW a conservative estimate. Operating conditions for the refiner motors are variable and are dependent on the production requirements at Nippon. Continuous data logging of the refiner motors will establish the real time (within minutes) operating conditions of the refiners for product 2 &4.The amount of the INC or DEC will be calculated based on the delta in real time conditions recorded by the refiner motor meters. For Product 3, the baseline will be the historical hourly average energy use of the refiner motors. The amount of the INC or DEC will be calculated by subtracting the metered average motor power from the calculated baseline during the hours of the DR event. 8. CONSIDERATIONS There are several key considerations to be addressed when deploying demand response strategies that can either shed (INC) or build load (DEC), depending on the need at any given time. In particular, the Project Team must address several foreseeable challenges: 11ES- 11306, Port Angeles Page 13 of 16 Exhibit C, Supplemental Tasks 8.1 Need to shield COPA from a higher BPA demand charge for DEC events done in any month: In FY 11, these are based on the BPA system peak. In FY12, demand charges from BPA will be coincident with the COPA monthly peak. COPA may reserve the right to not allow a DEC event triggered by BPA if they feel it will increase their BPA demand, energy, and load shaping charges for that month. If such charges should occur, BPA shall adjust COPA's bill per section 1.6. 8.2 Need to avoid fatigue on the part of the end -user: Nippon's primary objective is making paper cost effectively. This Supplement must support Nippon's core business objective to be successful. 8.3 Need to transparently integrate multiple monitoring and deployment systems: This Supplement is, in part, designed to test the efficacy of UISOL's DRBizNet© platform and its ability to manage multiple DR resources responding to multiple load management objectives from multiple controlling parties. BPA has no prior experience working with UISOL or its dispatching platform; there will likely be challenges that the Project Team cannot predict at this time. 8.4 Need to demonstrate that deploying for multiple objectives delivers a better value: A key presumption of this proposal is that the development of a single demand response dispatching platform will enable both BPA and its customer utilities to more effectively manage multiple load management objectives and programs. This provides an opportunity to realize greater return on investment to all parties involved due to the ability to leverage investments for multiple uses. The Supplement findings must contribute towards demonstrating the success or failure of this rationale 9. KEY PERSONNEL Table 9 -1 and the subtasks below provide contact information and project team member project role. Table 9 -1 Nippon DR Pilot Project team contact list ORG Name BPA DR Pilot Project Title Phone Email BPA Tom Brim Project Manager 503- 230 -4043 tebrim @bpa.gov BPA Joshua Binus Technical support 503 230 -5298 idbinus@bpa gov BPA Mark Symonds Technical lead for products 2 -4 503 230 -3027 mcsvmonds@bna.gov BPA Tony Koch Technical support 206 220 -6777 iakoch@bpa.gov BPA Melanie Parker Contracting Officer Technical 503 230 -3170 mrparker@bpa.gov Representative BPA Shannon Greene Power Services Account Executive 206 220 -6775 skgreene @bpa.gov BPA Melanie Jackson Transmission Account Executive 360- 619 -6012 mmjackson @bpa.gov COPA Phil Lusk Power Resources Manager 360 -417 -4703 Plusk @citvofpa.us COPA Bob Kajfasz Project Coordinator 360- 417 -4718 Rkaifasz@citvofpa.us Global Carlos Bravo Project Director 925 482 -2008 cbravo@gepllc.com 11ES- 11306, Port Angeles Page 14 of 16 Exhibit C, Supplemental Tasks Global Leigh Holmes Project Engineer 310 994 -4076 lhomes@gepllc.com Global Kim Brown Project Coordinator 503 224 -4323 kbrown@gepllc.com Nippon Paul Elliott Maintenance Engineering 360- 565 -7021 paul.elliott@npiusa.com Manager, Project Lead Nippon Bruce Raymond Lead Electrician 360- 565 -7069 bruce.raymond@npiusa.com Nippon Scott Adams Senior System Analyst, Pr Project 360- 565 -7000 scott.adams@npiusa.com Lead Nippon Jamie Strouf Pulp Superintendant 360- 565 -7056 Jamie.strouf@npiusa.com UISOL Michael Manning Project Manager 925 285 -4608 mmaning@uisol.com UISOL Travis Rouillard Demand Response Practice 925 307 -5449 TRouillard@UISOL.com Manager UISOL Colin Hickey Project Manager 414 510 -9550 chickey @uisol.com 9.1 Nippon Paper Industries Paul Elliot Nippon title: Engineering and Maintenance Manger Project Lead Project role: Represents Nippon interests and resources Bruce Raymond Nippon title: Lead electrician Project role: Metering and data system Jamie Strouf Nippon title: Pulp plant superintendent Project role: Pulp plant operations Scott Adams Nippon title: IT specialist Project role: Data presentment to external web server and information security 9.2 The City of Port Angeles Bob Kajfasz Energy Efficiency rep and project coordinator for COPA Phil Lusk Power Resources Manager and C &I project administrator 9.3 Bonneville Power Administration Tom Brim Project Manager Melanie Parker Contracting Officer Technical Representative Joshua Binus Technical support Mark Symonds Technical lead for products 2 -4, lead on power sales and NT contract needs between COPA and BPA Tony Koch Technical support, lead on metering and verification Shannon Greene Power Services Account Executive for COPA Melanie Jackson Transmission Account Executive 9.4 Global Energy Partners Carlos Bravo Project Director Leigh Holmes Project Engineer Kim Brown Project Coordinator 11ES- 11306, Port Angeles Page 15 of 16 Exhibit C, Supplemental Tasks 9.5 UISOL Michael Manning Project Manager Travis Rouillard Demand Response Practice Manager Colin Hickey Project Manager 10. BUDGET (SUPPLEMENT TO EXHIBIT B) Supplement to Exhibit B (Costs Associated for Products 2 -4 Only) Nippon COPA UISOL BPA Cost Cost Category Hardware* Total Project Share BPA Cost (In -kind) (In -kind) Integration A Personnel 26,900 3,300 30,200 B Fringe Benefits C Travel D Equipment Incentives* 800 800 E Supplies (non durable goods) F Contractual G Other Direct Costs H OpenADR Platform 30,000 30,000 100% 30,000 I Indirect Costs J Independent Evaluator Total 27,700 3,300 30,000 61,000 30,000 Equipment, Incentives Hardware included in base proposal ($40,000) 11ES- 11306, Port Angeles Page 16 of 16 Exhibit C, Supplemental Tasks 041 or c.% Department of Energy �ba Bonneville Power Administration Seattle Customer Service Center Vize 909 First Avenue, Suite 380 Seattle, Washington 98104 -3636 POWER SERVICES June 1, 2012 In reply refer to: PSW /Seattle Larry Dunbar, Deputy Director Power and Telecommunications Systems City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 -0217 Dear Larry, This letter is in response to your request concerning increases in energy and demand costs that might occur as a result of a DEC event at Nippon Paper Industries (Nippon) during the month of June 2012. The information about these events will be incorporated by amendment as Exhibit C into the Commercial and Industrial Demand Response (DR) Pilot Project Agreement (Agreement), Contract No. 1 1ES- 11306, executed between the Bonneville Power Administration (BPA) and the City of Port Angeles (Port Angeles) on February 8, 2011. Exhibit C adds Nippon Pilot Products 2, 3 and 4 to the scope of work. It should be noted that BPA, Port Angeles, and Nippon have been implementing in good faith the test events defined in Exhibit C even though it has not been incorporated into the Agreement as of the date of this letter. This letter defines the process that becomes effective should a monetary credit to Port Angeles be warranted due to a DEC event on Nippon's refiner line listed in Product 4 of Exhibit C. A DEC event occurs when Port Angeles, at the request of BPA, asks Nippon to increase the mill's refiner load causing an unplanned increase in Port Angeles' energy and demand. Adjustment for increase in demand during a DEC event After the end of each calendar month, BPA shall use Nippon recorded one (1) minute average kW for each refiner line set of motors and correlate with one minute average BPA SCADA data total feed to the Nippon mill measured at the BPA Port Angeles substation to measure the change in electric load during the DEC events. The DEC event kW delivered shall be the difference between the hourly average load during each event hour and the hourly average load (refiner mill total) in the hour immediately prior to the start of the DEC event. Refiner mill total load is the sum of the Nippon meters measuring refiner motors in lines 1, 2 and 3. If the DEC event is less than a whole hour in length, the DEC delivered kW during the DEC event shall be averaged with a "zero" delivered kW for the rest of the event hour to produce a net kW impact to the relevant BPA billing hour. Adjustment for increase in energy during a DEC event If a DEC event occurs in a Heavy Load Hour (HLH) BPA shall determine the increase in energy usage and provide a credit on Port Angeles' monthly power invoice. This credit will be calculated by multiplying the increase in energy by the difference between the applicable monthly Heavy Load Hour energy rate and Light Load Hour energy rate posted in the PF -12. The increase in energy usage for each DEC event hour shall be equal to the product of the hourly average DEC kW delivered for that same hour, and one (1) hour, to produce energy in units of kWh. Average hourly power in kW is equal to the hourly energy in that hour for any given load shape within that hour. Port Angeles and BPA may evaluate and by mutual agreement develop alternate baseline methodologies if applicable. BPA shall issue applicable credits to Port Angeles' June 2012 power and transmission bills for charges related to increases in energy and demand experienced by Port Angeles and provided to the Nippon refiner load as a part of a DEC event per the aforementioned baseline strategies. The billing and payment provisions in section 16 of Port Angeles' Power Sales Agreement No. 09PB -13093 and the billing and payment provisions of Port Angeles' Network Transmission Agreement No. 06TX -12443 shall govern. This letter shall be incorporated as Exhibit D into the Commercial and Industrial Demand Response Pilot Project Agreement, Contract No. 11 ES- 11306. Please let me know if you have additional questions or concerns. By 'L Z t W =a t By r-a .1•► Ferg— Name Shannon K. Greene Name Melanie M. Jackson Title Account Executive Title Account Executive Date 0//(( Date 717/e cc: Bob Kajfasz, City of Port Angeles Phil Lusk, City of Port Angeles ,S\PM'CIIST SKGYORT ANGEL ESWIL 2011 D ®and Relpoia6_11306\PA 11306 20120601 Lena 61 Elm or5upplcmau &gna stesFuud do 611 12 COMMERCIAL AND INDUSTRIAL DEMAND RESPONSE PILOT PROJECT AGREEMENT PURPOSE AND BACKGROUND executed by the BONNEVILLE POWER ADMINISTRATION AND CITY OF PORT ANGELES 6,(119 This Commercial and Industrial Demand Response Pilot Project Agreement (Agreement) is executed by the United States of America, Department of Energy, acting by and through the Bonneville Power Administration (BPA) and the City of Port Angeles (COPA), a municipal utility organized and authorized under the laws of the State of Washington to purchase and distribute electric power to serve retail consumers from its distribution system within its service area. COPA and BPA may be referred to individually as "Party" or collectively as "Parties." BPA wishes to conduct a demand response pilot project with COPA that will demonstrate the efficacy of an automated demand response (DR) strategy to mitigate COPA's peak demand. The project will be henceforth referred to as the "Commercial and Industrial Demand Response Pilot Project" or "Project" in this document. BPA also wishes to investigate and collect information as to the responsiveness of commercial and industrial (C &I) loads served by COPA to determine the benefits of DR as a tool for assisting BPA in meeting its marketing mission, in particular to avoid service to such load at times when capacity to serve that demand can be used to meet BPA's other system load needs and avoid incurring costs of incremental resources. This pilot project aims to enable C &I DR assets in order to: delay or eliminate regional transmission system upgrades; reduce COPA's peak demand; reduce the city's wholesale power supply costs to its end -use customers; test the efficacy of Catalyst Energy Technologies' Smart Storage Kit (48 kW) in a controlled commercial application; and test COPA's and BPA's ability to dispatch specific C &I loads through automated DR strategies. COPA's demonstration proposal (the Proposal) was submitted in response to BPA's summer 2010 solicitation for C &I DR pilot proposals and was selected by BPA for implementation. Since the proposal's original submission, the scope of the project has been collaboratively revised by both Parties. A version of the revised proposal is attached hereto as Exhibit A. Data collected from this pilot project will be analyzed to identify resulting costs, benefits, scalability, and any other factors that may arise over the course of the project. 1. Term This Agreement takes effect on the date signed by the Parties and expires on August 31, 2012. The Agreement may be extended by mutual agreement of the Parties. 2. Pilot Project Implementation 2.1 Cost and Payment The parties agree to the revised budget as outlined in Exhibit B. COPA's expected total cost is $272,605 ($72,390 of which is in -kind labor; $140,215 as a cash match). BPA's expected total cost is $398,120. 2.2 Scope The Parties shall direct and oversee the Project. The Parties shall work together to achieve the primary Project objectives, which are: to test the capability of DR assets to delay or eliminate regional transmission system upgrades by reducing the peak demand of COPA C &I load and BPA's need to supply it power (see BPA -COPA Regional Dialogue sales agreement, Contract No. 09PB- 13093); to test the capability of DR assets to delay or eliminate regional transmission system upgrades; to test COPA's and BPA's ability to dispatch specific C &I loads through automated DR strategies; and to test the efficacy of Catalyst Energy Technologies' Smart Storage Kit (48 kW) in a controlled commercial application. 2.3 Coordination A. The Parties shall make project decisions in good faith and by mutual agreement. In the event the Parties fail to mutually agree on a project decision they will consult with appropriate specialists and /or staff from COPA, BPA, and any other jointly agreed upon organization to reach a solution. If no solution can be found for the impasse, BPA reserves the right to suspend or terminate the remainder of the Project. B. The Parties shall establish a Project Team that has at least one representative from each Party. The representatives will have an opportunity to help shape the Project by participating in its management and oversight. The Project Team will provide oversight and direction for activities that include, but are not limited to: 1. review and confirmation of project planning and design; 2. approval of the final work plan; 3. installation of required DR- enabling assets; 4. execution of DR actions per agreed upon test events; 5. data collection and evaluation of tests; and 6. reporting of lessons learned. C. In order to facilitate the efficient implementation of the Project, BPA has hired Global Energy Partners (Global) to serve as its general contractor and project manager. The project management costs associated with Global will be paid by BPA. 2.4 Structure And Roles During the term of the Agreement the Parties agree that BPA will: serve as program manager for all BPA C &I DR pilots, bringing agency priorities to the Project team for discussion as necessary; co -fund implementation costs (see Exhibit B); fund Global to provide project management and general contractor support for the Project; manage Global's overall Project activities to assure continuity between COPA's and BPA's priorities /directives and ongoing implementation efforts; participate in the planning, implementation, and evaluation of the Project by providing ongoing support as needed, including but not limited to advice and technical and design assistance; review and approve project deliverables; and manage public relations needs as they arise, in close coordination with COPA. The following obligations will be carried out by Global, on behalf of BPA: serve as project manager on behalf of the Project Team (contractually accountable to BPA) and assure Project goals are met within the allotted budget and timeline and that resources are used as effectively as possible; coordinate and facilitate communication among Project Team members and COPA's customers as needed; serve as general contractor, executing and managing all sub contracts on behalf of COPA and BPA; develop and execute a Project plan, work with Project Team to develop evaluation methods, collect appropriate /desired data, perform analyses when needed, craft reports, and any other pertinent tasks identified by the Project team, and approved by BPA, that are deemed necessary for the successful execution of the Project; and share any and all project deliverables with Project Team members within ten working days of completion or receipt of such deliverables. Unless otherwise directed, all deliverables will be shared with the Project Team in the formats in which they were received. COPA will: co -fund implementation costs through the previously agreed upon cost share (see Exhibit B); 3. Limitation of Liability of BPA and COPA 3.1 Hold Harmless and Indemnification COPA shall save and hold harmless and indemnify BPA against any and all liability, claims, and costs of whatever kind and nature for injury to or death of any person or persons, and for loss, destruction, or damage to any property (including electronic storage areas), occurring in connection with or in any way incident to or arising out of the occupancy, use, service, operations, or performance of work under the terms of this Agreement, resulting in whole or in part from the willful, negligent, or careless acts or omissions of COPA, its subcontractors, or any employee, agent or representative of COPA or its subcontractors. 3.2 End User Agreements In every case where BPA is providing equipment, financial assistance, and/or control or dispatch of a DR event, COPA shall create and execute an agreement with its end user containing limit of liability and indemnification clauses protecting both COPA and BPA. BPA has the right to review, modify, and approve COPA's agreements with its end users prior to execution. 4. Amendments participate in the planning, implementation, and evaluation of the Project by providing ongoing support as needed, including but not limited to advice and technical and design assistance; recruit C &I pilot participants for the Project as needed; and assist in project execution as needed, especially in management of local customer relationships. No amendment of this Agreement shall be of any force or effect unless set forth in a written instrument signed by authorized representatives of each Party. 5. Entire Agreement This Agreement, including documents expressly incorporated by reference, constitutes the entire agreement between the Parties. It supersedes all previous communications, representations, or contracts, either written or oral, which purport to describe or embody the subject matter of this Agreement. 6. Uncontrollable Forces The Parties shall not be in breach of their respective obligations to the extent the failure to fulfill any obligation is due to an Uncontrollable Force. "Uncontrollable Force" means an event beyond the reasonable control of, and without the fault or negligence of, the Party claiming the Uncontrollable Force, that prevents that Party from performing its contractual obligations under this Agreement and which, by exercise of that Party's reasonable care, diligence and foresight, such Party was unable to avoid. Uncontrollable Forces include, but are not limited to: (a) strikes or work stoppage; (b) floods, earthquakes, or other natural disasters; terrorist acts; and (c) final orders or injunctions issued by a court or regulatory body having competent subject matter jurisdiction which the Party claiming the Uncontrollable Force, after diligent efforts, was unable to have stayed, suspended, or set aside pending review by a court of competent subject matter jurisdiction. Neither the unavailability of funds or financing, nor conditions of national or local economies or markets shall be considered an Uncontrollable Force. The economic hardship of either Party shall not constitute an Uncontrollable Force. Nothing contained in this provision shall be construed to require either Party to settle any strike or labor dispute in which it may be involved. If an Uncontrollable Force prevents a Party from performing any of its obligations under this Agreement, such Party shall (1) immediately notify the other Party of such Uncontrollable Force by any means practicable and confirm such notice in writing as soon as reasonably practicable; (2) use its best efforts to mitigate the effects of such Uncontrollable Force, remedy its inability to perform, and resume full performance of its obligation hereunder as soon as reasonably practicable; (3) keep the other Party apprised of such efforts on an ongoingbasis; and (4) provide written notice of the resumption of performance. 7. Signatures The Parties have caused this Agreement to be executed as of the date both Parties have signed this Agreement. UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By By Name Mike Weedall Name Kent My rs (Print /Type) (Print /Ty) CITY OF PORT ANGELES Title Vice President, Energy Title City Manager Efficiency Date 2I Date l COMMERCIAL AND INDUSTRIAL DEMAND RESPONSE PILOT AMENDED SUBMITTED BY: CITY OF PORT ANGELES, WASHINGTON SUBMITTED TO: U.S. DEPARTMENT OF ENERGY BONNEVILLE POWER ADMINISTRATION JANUARY 20, 2011 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended TABLE OF CONTENTS 1. PROJECT DESCRIPTION 3 1.1 GENERAL DESCRIPTION 3 1.2 PROJECT RATIONALE 3 1.3 GOALS AND OBJECTIVES 4 1.4 END -USER IMPACT 4 1.5 INCENTIVE 5 1.6 PERSISTENCE OF ASSETS 5 2. PROPOSED TECHNOLOGY 5 3. EXPECTED IMPACT TO CAPACITY 6 4. READINESS 6 5. TASKS 7 5.1 TASK 1- ADMINISTRATION 7 5.2 TASK 2 DEVELOPMENT OF OPENADR PLATFORM PROTOCOL 7 5.3 TASK 3 DEMAND RESPONSE EQUIPMENT TESTING 8 5.4 TASK 4 ECONOMIC EVALUATION 13 6. PROJECT TIMELINE 13 7. MEASUREMENT AND VERIFICATION 13 8. CHALLENGES 14 9. KEY PERSONNEL 14 9.1 THE CITY OF PORT ANGELES 14 9.2 EES CONSULTING 15 9.3 CAPACITY PROVISIONING, INC. 15 9.4 AMI SYSTEM VENDOR Error! Bookmark not defined. 10. BUDGET 15 ATTACHMENT E— SUPPLEMENTAL CLARIFYING INFORMATION January 20, 2011 Page i City of Port Angeles Commercial and Industrial DR Pilot Projects Amended LIST OF TABLES TABLE NO. TITLE PAGE NO. 3 -1 MAXIMUM DEMAND REDUCTION 4 5 -1 INTEGRATED LOAD MANAGEMENT RESOURCES 6 5 -2 INTEGRATED LOAD MANAGEMENT SUMMARY 7 5 -3 FAST DR RENEWABLE ENERGY INTEGRATION SUMMARY 8 6 -1 PROJECT TIMELINE 11 LIST OF FIGURES FIGURE NO. TITLE PAGE NO. 9 -1 PROPOSED PROJECT TEAM ORGANIZATION CHART 12 January 20, 2011 Page tt City of Port Angeles Commercial and Industrial DR Pilot Projects Amended 1. PROJECT DESCRIPTION 1.1 GENERAL DESCRIPTION This proposal is submitted in response to the Project Implementation Plan issued by the Bonneville Power Administration (BPA) and Global Energy Partners, LLC (Global) for Commercial and Industrial (C &I) Demand Response (DR) Pilot Projects. The City's Utility Advisory Committee (UAC) and City Council authorized the submission of this proposal during July 2010. The proposed pilot project will fulfill all key goals that have been identified as regional focus areas. These focus areas are: 1) Integrating renewable into grid; 2) Managing winter peaks; 3) Handling grid disruptions, and; 4) Integrating energy efficiency and DR activities. The City of Port Angeles (City) is actively involved in upgrading its electric utility with an Advanced Metering Infrastructure (AMI) system with smart meters capable of incorporating rate designs to mimic BPA's forthcoming wholesale power Tiered Rate Methodology (TRM). If this pilot project is selected for funding by BPA, the City will purchase and install DR equipment at selected C &I facilities and integrate BPA and City load data via a fiber optic network. Once the pilot DR equipment is operational, the City will collect qualitative and quantitative data for a maximum of 15 months. 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 C &I customer's acceptance of DR technologies, including lessons learned during the test period. As a result, the City is uniquely positioned to be able to assist the BPA in achieving its objectives for the C &I Pilot Project, with the overarching objective to identify and implement practical DR pilots in the C &I sectors. The City supports BPA's vision that experiences from these pilots will be used to broaden the DR knowledge base in the Pacific Northwest and that findings from these pilots will ultimately be shared in some form with regional participants. Specific priorities for reaching these objectives in the City's proposal include: 1) Ensure stakeholder involvement and a transparent project implementation process; 2) Identifying, preparing, and securing viable pilot participants; 3) Demonstrating the technical feasibility of DR pilots that have not been proven elsewhere; 4) Successfully demonstrating how DR can facilitate grid integration of intermittent renewable resources, especially wind, to address generation variability; 5) Demonstrating load shifting strategies in combination with load curtailment that result in shifting peak period loads to off -peak hours, along with load reduction during peak periods; 6) Building customer success with DR, and; 7) Demonstrating solutions that can be scaled up and applied elsewhere. 1.2 PROJECT RATIONALE The City, located on the Northern Olympic Peninsula in Washington State, is an ideal location for C &I 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 C &I DR options has the potential to benefit the City and the region in avoiding costly transmission upgrades and lowering 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 i Pacific Northwest National Laboratory, Pacific Northwest Grid Wise Testbed Demonstration Projects. Part I Olvmoic Peninsula Project. DOE Contract Number DE ACO5 76RL01830, October 2007 January 13, 2011 Page 3 ti City of Port Angeles Commercial and Industrial DR Pilot Projects Amended 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 as power balancing between distant generation sources and local demand for the City and the BPA. In 2010 and 2011, Port Angeles will purchase and install a new AMI system, including 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 automation, peak load management and DR, and business area networks. A key deliverable for the AMI system will be its flexibility to interface with the electric utility's Supervisory Control and Data Acquisition (SCADA) System to control DR events and the City's substation Voltage Optimization (VO) system. In preparing for the shift to the BPA's TRM for wholesale power purchases effective October 1, 2011, the City has conducted an assessment to evaluate methods to equitably allocate the BPA wholesale TRM power costs to customer rate classes (e.g., residential, commercial, etc.), develop retail rate design options for each rate class based on the shift to BPA wholesale TRM power costs, evaluate cash reserve needs, and develop a capital financing strategy. The most advantageous retail rate design to respond to BPA's wholesale TRM was found to be a seasonal Time -of -Use (TOU) rate with a demand charge, which was approved by City Council on August 17, 2010, and will become effective on January 1, 2012. This recommended rate design for all customer classes, similar to the City's current Municipal Water Pump rate design and an optional TOU rate schedule that has been available to all City electric utility customers since 2007, will also feature an inclining block demand rate. As a result, future DR programs for all customer classes are planned to incentivize customer's to avoid exceeding their contract demand quantity (CDQ), to help maintain similar load shape to BPA, and to help mitigate critical peak periods 1.3 GOALS AND OBJECTIVES In addition to the regional goals noted above, the City has two primary project goals. In anticipation of the change to the TRM, the first project goal is to demonstrate the ability to mitigate the City's critical peak demand period in order to meet the following objectives: Delay or eliminate regional transmission system upgrades Reduce the City's peak demand above its assigned CDQ Reduce wholesale power supply costs to the City's electric utility customers. The second project goal is to work with BPA to reduce demand on BPA's transmission system. This proposal includes implementing the Open Automated Demand Response Communication Standards (OpenADR) communications protocol between BPA and the City so that BPA is able to take advantage of the identified automated and dispatchable DR resources. 1.4 END -USER IMPACT The City, along with Global, approached more than 20 of the City's largest customers regarding their participation in the C &I DR Pilot Project. The City will move forward at this time with DR pilot projects with nine of the City's largest C &I customers. Following the implementation of the pilot project, these DR efforts will be expanded to include other City C &I customers as will be further detailed below. For this pilot project, the City expects to achieve an initial overall peak reduction of 3.2 MW as outlined in Table 3 -1 below. The City is also proposing a dispatchable DR component to the pilot project that would allow BPA to control its peaks for both generation and transmission systems serving Port Angeles. 2 The City's electric utility's non coincident peaks in the winter month have a greater than 90% probability of occurring between 6 00 a m and 10 00 a m For the purposes of the proposal, this time period will be referred to as the City's "cntical peak." January 13, 2011 Page 4 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended According to the Commercial and Industrial Demand Response Project Development and Management Project Implementation Plan, the BPA will first enter into a Memorandum of Agreement (MOA) with participating utilities. To add flexibility for the pilot participant end -use customers, the BPA DR Team will provide the choice of two contracting options: 1) Contract with BPA or 2) Contract with Global, general contractor for the BPA. For certain end -use customers and in certain pilot scenarios, the ability to contract with a third party contractor such as Global may ease the contracting process and thus better meet the objectives of the pilot. For the four proposed Integrated Load Management projects, there is an undoubted opportunity for Global to assist the City in the definition of operational strategies, assisting customers during the Auto DR equipment installation and program operations. However, the City has yet to make a final determination of the contracting option it will ultimately choose. 1.5 INCENTIVE As previously noted, the City is in the process of implementing demand rates for all customer classes. At a minimum, the City's future demand rate will be set at BPA's wholesale rate to the City (the current indicative rate is estimated to be $8.50/kW). Project participants will have to be able to consistently reduce their monthly demand to maintain cost savings through lower retail demand costs on their utility bill. For the City's C &I customers scheduled to participate in the Integrated Load Management project component, "mock" incentives are based upon a "mock" market concept that has a hypothetical rate adder during the DR event plus an equipment incentive. The "mock" market concept would not really penalize for not shedding, but post -event information will be used to educate customers about the increased costs they would incur for not reducing load. Using this "mock" market model, the city proposes using a hypothetical rate adder in calendar year 2011 of up to $5.00/kW (in addition to current demand rates that vary by rate class) during scheduled DR events. 1.6 PERSISTENCE OF ASSETS The City intends to continue to use the pilot project assets following the pilot project's completion. The City anticipates expanding this pilot project to include offering all C &I customers DR opportunities as it strives to avoid exceeding its anticipated CDQ, to better match BPA's load shape and to minimize its use of BPA's capacity constrained transmission system. Minor extensions of the City's fiber optic network will be completed by Capacity Provisioning, Inc, which will be continued after pilot project completion. 2. PROPOSED TECHNOLOGY The City is in the process of selecting a vendor for the purchase and installation of a turnkey AMI system for its electric, water and wastewater utilities. The AMI system vendor will provide and install the DR equipment proposed for this pilot project, some of which will directly interface to the City's electric utility SCADA system. The City is planning to use the following technologies: OpenADR communications infrastructure Client devices to accept OpenADR resources Metering (if required) System level network controllers OpenADR communications infrastructure will consist of poly -phase and CT metered customers that will receive DR signals directly from an OpenADR platform that will be provided by BPA. OpenADR January 13, 2011 Page 5 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended specifications will be essential to ensure interoperability among technical components with open standard, platform- independent and transparent end -to -end technologies or software systems. The design of the pilot will consider the applicability of these technologies to specific industries or customer segments. OpenADR allows customers to choose their level of response and how to enable DR strategies. OpenADR communications will increase the number of facilities that participate in DR and eventually lead to reduced cost to frequent participation in DR events. The OpenADR platform will be used to test summer winter peak load reduction, and FAST -DR concepts. 3. EXPECTED IMPACT TO CAPACITY As outlined in Table 3 -1, the C &I DR Pilot Project proposed by the City is expected to achieve a maximum peak reduction of 3.2 MW each month. As a matter of scale, this represents the potential ability to reduce the City's critical peak by about 1.5 Because the City does not have access to natural gas, it is feasible to expand this DR pilot project to nearly all C &I customers to varying degrees with the expectation that a mature C &I DR program might have up to a 50% market penetration among the eligible customers. As will be further explained, dispatchable DR could add even a greater potential. Task 3.1 Integrated Load Management Task 3.2 Fast DR/RE Integration* TOTAL *Integrated Load Management Participants will be tested for FAST -DR ''Table 3 aximdmi Demand Maximum Load Shed (kW) 3,180.25 48.00* 3,228.25 4. READINESS The City is in the process of selecting an AMI system vendor, and has completed its initial review and interviews of the responding vendors. The procurement process includes recommendation of the preferred vendor 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 classes. The UAC meets monthly and the meetings are open to the public. The City Council approved the issuance of a revenue bond that provides funding for the AMI system, and the bond receipts have been programmed for spending upon award approval. The City continues to expect to issue the AMI system vendor contract in November 2010. The selected AMI vendor is required to install a "Phase 1" of the AMI system in conjunction with the BPA- sponsored residential pilot DR equipment by March 2011, which will consist of the 600 AMI systems to be in support of the residential DR pilot project. The complete balance of AMI system will be scheduled for completion in the spring of 2011. As will be further narrated in the proposal, eight Integrated Load Management projects and a Fast DR/Renewable Integration project can proceed independently of the AMI system's deployment. There is a cross -over with the residential pilot, in that the City is working with the BPA on a supplemental wind integration study that has now been expanded to include light commercial customers. By also affecting economies of scope in the development of its DR marketing materials, the City anticipates some cost savings by bundling the Residential and C &I DR pilots. As will be explained below, there is also the ability to reduce expenses associated with ad placement. January 13, 2011 Page 6 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended While DR is commonly considered in areas such as load shedding (curtailment) or load shifting, the City is most interested in developing its capacity for using DR as a load shaping tool, so that the techniques and technologies deployed under both pilots will be able to constantly fine -tune the City's energy consumption and demand in real time to resemble BPA's generation system load shape. By definition, this means the two efforts will become highly inter related. The City has staff available for the administration of the C &I DR Pilot Project as outlined later in this proposal. The City proposes a team of 14 employees that will be engaged in the project on about a 0.15 full -time equivalent (FTE) basis, as well as the use of contractual support services. Furthermore, the City intends to use its designated AMI system vendor to do the physical installation of all direct load control equipment. If necessary, the City will use other vendors to install C &I DR equipment that is beyond the scope of its AMI system. A recent addition to the City's employee mix is a shared Resource Conservation Manager (RCM), which is a local partnership between the City of Port Angeles, Olympic Medical Center, Clallam Transit, and Clallam County as the lead agency. The RCM has added a 1.0 full time equivalent (FTE) position to the staff portfolio, and much of the RCM's recent duties have focused on identifying direct load control DR opportunities for the four partners. Lastly, City staff has recommended adding a 1.0 FTE conservation program staff member in January 2011. This proposed staff addition will focus on the City's residential sector, with a principal emphasis on the residential DR pilot project funded by the BPA. Moreover, this staff addition will allow the City's current conservation program staff to focus solely on the commercial and industrial sectors, with a principal emphasis on the C &I DR pilot project. Further details on staffing and other matters is provided in Appendix E. 5. TASKS The purpose of the proposed pilot project is to implement a C &I DR effort aimed at reducing the City's critical peak demand. The following tasks accomplish this goal on a pilot scale that can easily be expanded to the City's remaining C &I customers. r 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: Contractual agreements, if necessary, with customers to participate in the pilot project Communicate with customer participants o Onsite training o Notify customers of DR events o Resolve customer issues Collect and compile metering data for evaluation task Prepare regular status reports to BPA 5.2 TASK 2 DEVELOPMENT OF OPENADR PLATFORM (DEMAND RESPONSE PROTOCOL) The City also proposes to acquire BPA's load balancing signal and transmit that information via the fiber optic network in real -time to the pilot participants, along with real -time information regarding the City's distribution system load, through its SCADA system. In general, the City is interested in scheduling a total of four DR events with durations not expected to exceed two hours. Events will be categorized according to the City's system characteristics, but they will likely occur during the winter heating season. January 13, 2011 Page 7 i City of Port Angeles Commercial and Industrial DR Pilot Projects Amended The specific frequency and time period for the events will be further defined in conjunction with the BPA and the pilot project participants. There is also an opportunity for the BPA to schedule DR events that can be determined upon project award. Task 2 includes developing load reduction strategies for each participating customer, depending on available resources. Different protocol may be designed based on curtailment event. For customers where integrated load management is possible, DR resources will consist of process rescheduling and/or voluntary load curtailment. BPA will provide an OpenADR platform that will be used for the following purposes: Provide a web portal for managing programs, resources, events, and performance View and manage specific resource portfolio, events, meter data, and performance calculations Send OpenADR event notifications via OpenADR Send courtesy event notifications via email and SMS Monitor device availability and event participation The OpenADR platform will communicate with all pilot participants via an OpenADR gateway that will be installed at each of participant's facility. 5.3 TASK 3 DEMAND RESPONSE EQUIPMENT TESTING Under this task, the City will implement specific DR pilot projects at selected facilities. These DR pilot projects can be divided into three categories: Integrated Load Management Nippon Paper Industries: Equipment shutdown during critical peak periods. Olympic Medical Center: Equipment shutdown and possible use of an alternate boiler fuel during critical peak periods. Port Angeles Hardwood: Equipment shutdown during critical peak periods, combined with a start-up time delay to provide load- shifting during morning hours. City of Port Angeles Water Treatment Plant: Reschedule backwash operation to non -peak periods City of Port Angeles City Hall: Central Boiler North Olympic Library: Roof -top VAV Unit Clallam County Courthouse: Electric Boilers Clallam County Housing Authority: Heat Pumps January 13, 2011 Page 8 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended Fast DR/Renewable Energy Integration Catalyst Energy Technologies: Incorporate an intelligent energy storage package referred to as a Smart Storage Kit on the customer's side of the meter at The Landing Mall. The Landing Mall, located on the downtown waterfront, is home to 18 groups and businesses. Among others, these include three restaurants, two art galleries, the National Oceanic and Atmospheric Administration, and the Chamber of Commerce. All Integrated Load Management participants will also be tested for FAST -DR potential To ensure that the DR impacts can be captured over two heating seasons, data will be collected for a maximum 15 -month period beginning January 1, 2011 and ending March 31, 2012. Pilot project details follow. TASK 3.1 INTEGRATED LOAD MANAGEMENT City C &I customers may enter into contracts with the City, or otherwise agree to curtail load by a pre specified amount (e.g., full/partial shutdown) during a DR event. This, combined with load shifting (e.g., rescheduling operations) provides for an integrated load management DR pilot project. Table 5 -1 below summarizes the integrated load management resources identified for the C &I Pilot Project. Nippon Paper Industries PA Hardwood Olympic Medical Center PA Water Treatment Plant City of Port Angeles City Hall Noth Olympic Library Clallam County Courthouse Clallam County Housing Authority ,Table .Ayailab1e IntegratedToad Management Resoa'rces Day OpenADR Day -Ahead of Notice FAST DR X I X X I X I X J X X I X I X I X X X X X X X X X Fully Automated Rescheduling Curtailment I X X X x X x I x 1 x 1 x 1 I x I x x X x x x X x The integrated load management pilot projects in this subtask are further described below. Table 5 -2 illustrates the potential demand reduction capable at each customer's facility, such as the current potential demand reduction from a complete plant shutdown during a critical peak period or rescheduling the backwash process to a period other than a critical peak period at the water treatment facility. As detailed below, the maximum potential load shed from the integrated load management pilot projects is 3.18 MW. Nippon Paper Industries, USA Co., Ltd is equipped with an individual custom load controller. Programmable logic controllers (PLC) can be added and programmed to include automatic shut down. Port Angeles Hardwood is equipped with Allen Bradley PLC's that are networked and provide complete plant visibility from an operator console. Logic can be added to the controllers to include automated shutdown. January 13, 2011 Page 9 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended Olympic Medical Center is equipped with a Siemens Direct Digital Control (DDC) system; a DR strategy can be integrated into the Siemens DDC system to reset supply air temperatures for a specified air handling unit. The Pilot Project would decrease supply air temperature in the winter and increase supply air temperature in the summer. The Olympic Medical Center also uses two electric boilers that are manually operated, and with advance notice the electric boilers could be cycled off. City of Port Angeles Water Treatment Plant is a new facility equipped with a fully- automated control system. The facility operates a backwash cycle that is staggered during a week. The cycle includes a 15 minute process per filter for six filters. This process might be rescheduled to avoid a critical peak period. North Olympic Library System Clallam County Courthouse Clallam County Housing Authority City of Port Angeles City Hall Type of Equipment Nippon Paper Industries Filter Plant Back Wash Pumps Subtotal Port Angeles Hardwood De- barker Ring Hog Whole Log Chipper Overhead Dust Collector Kilns (7) Subtotal able 5 -2 IritegratedLoad Managenierit`ResourceSummary Base Load Total for All Units (kW) 18.65 18.65 59.70 149.20 238.70 44.80 564.00 1,056.30 Maximum Load Shed (kW) 18.65 18.65 59.70 149.20 238.70 44.80 564.00 1,056.30 Olympic Medical Center Supply Air Temperature Reset 8.00 8.00 Electric Boiler (2) 625.00 625.00 Subtotal 633.00 633.00 City of Port Angeles Water Treatment Plant Blower Motor 59.7 59.7 Pump and Motor 14.9 14.9 Pump and Motor 59.7 59.7 Subtotal 134.3 134.3 North Olympic Library System 180 Clallam County Courthouse 700 Clallam County Housing Authority 458 January 13, 2011 Page 10 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended City of Port Angeles City Hall GRAND TOTAL TASK 3.2 FAST DR RENEWABLE ENERGY INTEGRATION The Landings Mall will install a Catalyst Energy Technologies (CET) intelligent energy storage package referred to as Smart Storage KitsTM (SSK). The SSK is intended for load shaping, added reliability and arbitrage, and for reducing generator fuel consumption in off -grid applications. CET, a Port Angeles based company, has established relationships with key component providers, tested relevant key technologies, installed pilot systems, conducted marketing studies and begun the development of a utility grade SSK in sizes from 4 -kW to 50 -kW. The first lithium -ion (LI) battery test was successfully completed in mid- September 2010 and the next development stage is installing a 48 -kW SSK in a controlled, commercial application. This battery-set is controlled by a patented Battery Management System (BMS). The heart of the SSK is a proprietary inverter with the unique ability for capturing reactive power (VAR) from any circuit with inductive loads, such as motors and florescent lighting, and redelivering it back to the system as useful power. This unique characteristic can extended the storage duration in the batteries and deliver power with a unity power factor. For the C &I DR pilot, the SSK will operate on the customer side of the meter and provide power to the end -user for an initial period of 90 days. During this period, the batteries will be cycled at least once a day and the parties will evaluate the operation of the battery bank, inverter, charger and general benefits to the end -user. The charging current will be provided by the utility (purchased by the end -user) and may be supplemented by other renewable resources such as wind. During the initial pilot project phase, stored power will not be exported to the utility. The City will be able to manually control the charging and discharging cycles through its SCADA system, and evaluate the power factor improvement offered by CET's inverter, as well as achieve some limited level of load shaping. The next pilot project phase will install remote dispatching and communication hardware and software that will fully interface with the City's SCADA system. This will allow the SSK to demonstrate its capability to fully function as an instantaneously dispatchable resource "Fast DR and demonstrate how DR can facilitate grid integration of intermittent renewable resources, especially wind, to address generation variability. CET will work closely with the City during this pilot project phase to ensure the communication and dispatching protocol is an exact fit. When all phases of the pilot project are completed, CET will turn over the project equipment to The Landings Mall. Each SSK unit provides 48 kW /48 -kWH of storage capacity, an aggregated array of these units could provide an exceptionally reliable and highly flexible reserve to the electric utility. The location of these kits may also allow the utility to reduce its transmission and distribution demand during the peak periods by dispatching the stored power from the LI batteries at the point of use. As shown in Table 5 -3, the maximum load shed potential from the Fast DR/Renewables Integration pilot project component is almost 0.05 MW. Type of Equipment The Landing Mall Battery Storage TOTAL January 13, 2011 22.0 able', enewable`- ,Energyj,Integr ation Summa Base Load Total for All Units (kW) 48.00 48.00 Maximum Load Shed (kW) 48.00 48.00 3,180.25 Page 11 A City of Port Angeles Commercial and Industrial DR Pilot Projects Amended SSK PRINCIPALS OF OPERATION The SSK is a state -of -the -art distributed storage based on a proprietary inverter and charger and latest large format lithium ion battery technology. The current architecture of the system is shown below. The kit consists of: 48 -kW inverter (see attached specifications) Charger (see attached specifications) A bank of Lithium Ion batteries and associated battery Management System (see specifications below) Enclosure Communication hardware The kit is designed to be installed either on the customer or on the utility side of the meter. Any source of power including the grid, solar, wind or a genset can supply power to the kit and charge the system to its full capacity. The use of lithium ion batteries allow the system to cycle daily and can last up to 10 years even if it is charged and discharged (cycled) every day. Once fully charged, the kit would go into stand- by mode, ready to discharge on demand. The operating utility can dispatch the stored power based on a preset protocol to shape load (smooth out peak and valleys), support voltage or provide power directly to the end -users during a blackout. The power can be dispatched instantaneously as long as the kit is fully charged and in stand -by mode. Further details on the SSK technology is provided in Appendix E. TASK 3.4 DISPATCHABLE DEMAND RESPONSE The focus of this task is to test the methodology for ADR dispatching during BPA's generation and transmission critical peak demand periods. This task will test the ability for the BPA to remotely and securely initiate a request to reduce the City's C &I load during its critical peak periods. The City is nearing the completion of its previously mentioned distribution system VO project. The AMI system is capable of integrating 24 voltage sensors into the City's SCADA System that will dynamically adjust substation transformer voltage to ensure that customers at the end of any feeder would not experience any under- or over voltage issues. As part of this proposal an interface would have to be programmed for the voltage sensors for each substation to ensure that the lowest sensor output is used to adjust transformer voltage. The City could also set up a communication protocol through its SCADA system to allow BPA to remotely initiate a request to reduce the City's voltage through its VO project, impacting commercial and residential customers. Investigations by the City show that a 2.5% -3.75% reduction in voltage could result in a 1.3 -1.5% reduction in the electric utility's demand for its distribution customers (Industrial Transmission excluded). This could potentially contribute another 2.0 -2.5 MW of load reduction during BPA's critical peak period. This process could also 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 resources could easily be considered dispatchable resources given an appropriate economic incentive from the BPA. January 13, 2011 Page 12 City of Port Angeles Commercial and Industrial DR Ptlot Projects Amended 5.4 TASK 4 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. 1) From BPA's perspective, the analysis will look at avoided transmission facilities upgrades, functionality of dispatchable DR, and large- scale, system -wide benefits. 2) From the City's perspective, the analysis will account for avoided generation and transmission peak demand charges, functionality of large -scale cooperative dispatchable DR, avoided distribution facilities upgrades, customer relations and response to incentives. 3) From the customer's perspective the analysis will include hypothetical reductions to their utility bills due to the "mock" demand cost savings, and the equipment costs incentives. 4) The TRC test will be applied to determine if this application is beneficial to the region as a whole. The proposed C &I Pilot Project results can be scaled to the Pacific Northwest Region, as the savings determined from this project might apply to BPA customers in other service territories. Other utilities might use the savings data to conduct benefit -cost analyses for similar DR projects as they apply to their own territory. Likewise, savings estimates from other utility studies might be used in the future as the City evaluates DR projects for other customer/building types (such as commercial retail, restaurants, or other consumption patterns not included in this pilot project). 6. PROJECT TIMELINE The project timeline is outlined on a quarterly basis in Table 6 -1. The timeline, presented on a calendar year basis, will be further refined during the planning and design phase. Planning and Design Installation Testing /Operation Evaluation of Results January 13, 2011 able Calendar Y earTroject`T imehn 2010 I 2011 2012 Q4 1 Q2 Q3 Q4 Q1 Q2 7. MEASUREMENT AND VERIFICATION The C &I DR Pilot Project will be evaluated by calculating the baseline consumption (kW) for the period of interest (calendar year 2011) and comparing the actual consumption to the estimated baseline. The measurement and verification model will use fixed effects so that savings will be evaluated on an individual basis for each participant. The baseline consumption will be calculated using a forecast of average kW consumption that is developed using historic data. All participants are currently demand metered or will be demand metered upon the installation of the AMI system. Weather variables will be included in the forecast model to match consumption data to the weather data observed in 2011. In addition, known energy efficiency improvements will be accounted for in the forecast of the baseline. Peak demand reduction savings from the Northwest Power and Conservation Council's 6 Power Plan Page 13 a City of Port Angeles Commercial and Industrial DR Pilot Projects Amended documents will be used to account for energy efficiency improvements. Actual savings will be based on observed weather. Estimated savings as a percentage may be extrapolated to similar industries and commercial electric rate classes only. 8. CHALLENGES As already narrated in the proposal, the City will move forward at this time with DR pilot projects with nine of its largest C &I customers. Direct Load Control is not part of this pilot. 9. KEY PERSONNEL The project team is composed of the City of Port Angeles, EES Consulting Inc., Capacity Provisioning, Inc., UISOL, and an AMI/DR equipment vendor to be determined during the course of the City's AMI project. The City will function as the prime organization as shown in Figure 9 -1. Larry Dunbar will be the City's project manager for this effort, and Phil Lusk will serve as the BPA's principal investigator for the City. Both team members have more than 25 years of professional experience in the energy industry. Specific qualifications from each team member organization and staff follows. January 13, 2011 FIGURE 9 -1: Proposed Project Team Organization Chart City of Port Angeles Larry Dunbar Project Manager Phil Lusk pal Investigator lecommunications' Service Provider Provisioning, Inc. THE CITY OF PORT ANGELES 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 9 miles of transmission, 103 miles of overhead distribution and 40 miles of underground distribution with 7 substations. The utility 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 transmission lines that form a 9 mile loop around the City, to seven 69/12.47 -kV substations down to a total of 24, 12.47 -kV distribution feeders to its customer portfolio. The highest coincident peak the City had with BPA generation in 2008 was 108.6 MW and its highest distribution system peak was 144.9 -MW. The City also averaged 83.5 -aMW in 2008 and, largely due to milder winter weather, an average of 79.1 -aMW in 2009. Page 14 City of Port Angeles Commercial and Industrial DR Pilot Projects Amended 9.2 EES CONSULTING EES Consulting is a multidisciplinary management consulting and registered professional engineering firm providing a broad array of services to clients involved in electric, water, wastewater, telecommunications, natural gas and other natural resource related businesses. EES Consulting has assisted clients in meeting the challenges in evolving competitive, regulatory and technical environments. Resumes of all key EES Consulting project team members are available upon request. 9.3 CAPACITY PROVISIONING, INC. Capacity Provisioning Inc. (CPI) is the largest fiber optics service provider on the Olympic Peninsula of Washington State, maintaining and serving systems and networks for organizations including the City of Port Angeles, Clallam County, Olympic Medical Center, the Port Angeles School System, Peninsula College and hundreds of area businesses. CPI was created in 2001, from a partnership between Excel Utility Construction Inc and Angeles Communications Inc. In 2002, another partnership was formed that brought government and private business together to provide high -speed fiber optic data access to the City of Port Angeles and the surrounding area. The venture formed between the City of Port Angeles, Northland Cable (now Wave Broadband) and CPI, provided an interconnecting fiber optic ring within the community and provided a high quality outer connecting fiber optic link with the global community Resumes of all key CPI project team members are available upon request. 9.4 UISOL UISOL is a leader in providing technology for automation of demand response and is one of the few technology vendors that have demonstrated an OpenADR signaling capability. The UISOL DRBizNet© suite of software products for automating and integrating demand response business networks is the result of a decade of R &D in building a modern software platform for demand response automation and integration that is flexible, automated, scalable, interoperable, secure, reliable, and easy to use. DRBizNet© has been showcased at the CAISO DR Lab since 2008, where it is used for managing selected demand resources through OpenADR. DRBizNet© is in production at the largest DR market in the world, PJM Interconnection. It is used by over 1100 users at PJM and at 250 market participants to manage the participation of 8000 MW of demand resources in fourteen (14) states in markets for Capacity, Energy, and Ancillary services, and is also used by the California ISO and the Midwest ISO. UISOL has a world class systems integration methodology and an extensive set of reusable integration assets, and has over 90 companies in the utility industry. 10. BUDGET The City proposes a project having a total budget of $670,725. This includes a $398,120 budget request from the BPA. The City will contribute a total of $272,605, with $72,390 budgeted for in -kind services and $140,215 provided as a cash match. As the proposal results in a 59.4% cost -share for the BPA, the proposed budget plan provides a good cost value to BPA and to its ratepayers. It is expected that about 85% of the BPA project costs will be incurred in FY2011 and about 15% will be incurred in FY2012. January 13, 2011 Page 15 City of Port Angeles Commerical Industrial Demand Response Pilot Project Budget PerSofl See Personnel Detail See Personnel Detail crjravoi: See Travel Detail 0:"Eqiii_Pinehe&;10t'ehtiV7 See Equipment Incentives Detail See Contractual Detail 0: ii See Other Direct Cost Detail 1 t ,400 1 4Ra OW t tG,14 :4.''. Cost Category 14,060 8,980 Total Project Costs 463,035 2,500 15,000 100,000 Total Direct Costs 670,725 ii57,77 N/A 0 BPA-COPA C&I DR Pilot Agreement--Exhibit B.xls Total Indirect Costs Total Costs Proposed Proposed BPA Costs BPA Cost Share 0% $0 20,300 100% $20,300 0 670,725 60% $277,820 0% $0 0% $0 100% $100,000 $398,120 irf $0 $398,120 2/1/2011