The URL can be used to link to this page

Home My WebLink About5.375J Original Contract170'` T)NGEL1ES W A S H I N G T O N U.S A. Public Works Utilities Department November 12, 2009 Mr. Gary Saleba EES Consulting, Inc. 570 Kirkland Way, Suite 200 Kirkland, WA 98003 Dear Gary, Please find enclosed the Consulting Services Agreement for the Load Control Feasibility Study, which was accepted by the City Manager. We look forward to the insight the study will provide on how the City can manage its future peak demand charges under the Tiered Rate Methodology. Sincerely, Larry Dunbar Deputy Director of Power Systems Phone' 360- 417 -4800 Fax: 360 -417 -4542 Website www.cityofpa.us Ernait 321 East F fth Street P 0 Box 1150 Port Angeles, WA 98362 -0217 CONSULTING SERVICES AGREEMENT EES CONSULTING, INC. Billing Address 570 Kirkland Way, Suite 200, Kirkland, Washington 98033 (425) 889 -2700 This Consulting Services Agreement (herein Agreement) is made between EES Consulting, Inc (hereinafter "EES CONSULTING and the City of Port Angeles„ Attn Mr Larry Dunbar, P O Box 1150, Port Angeles, WA 98362 (hereinafter "CLIENT 1. SCOPE, COMPENSATION AND QUALITY OF CONSULTING SERVICES EES CONSULTING will provide the services and be compensated for these services as descnbed in Exhibits A, and B attached hereto EES CONSULTING shall render its services in accordance with generally accepted professional practices EES CONSULTING shall, to the best of its knowledge and belief, comply with applicable laws, ordinances, codes, rules, regulations, permits and other published requirements in effect on the date this Agreement is signed 3 Insurance II. TERMS CONDITIONS OF CONSULTING SERVICES AGREEMENT 1 Timing of Work. EES CONSULTING shall commence work on or about October 19, 2009 2 Relationship of Parties, No Third -Party Beneficiaries. EES CONSULTING is an independent contractor under this Agreement This Agreement gives no nghts or benefits to anyone not named as a party to this Agreement, and there are no third party beneficianes to this Agreement. a Insurance of EES CONSULTING EES CONSULTING will maintain throughout the performance of this Agreement the following types and amounts of insurance Worker's Compensation and Employer's Liability Insurance as required by applicable state or federal law u Comprehensive Vehicle Liability Insurance covenng personal injury and property damage claims ansing from the use of motor vehicles with combined single limits of $1,000,000 m. Commercial General Liability Insurance;covenng claims for personal injury and property damage with combined single limits of $1 ,000,000 iv Professional Liability (Errors and Omissions, on a claims -made basis) Insurance with limits of $1,000,000 b Interpretation Notwithstanding any other provision(s) in this Agreement, nothing shall be construed or enforced so as to void, negate or adversely affect any otherwise applicable insurance held by any party to this Agreement 4 Mutual Indemnification EES CONSULTING agrees to indemnify and hold harmless CLIENT and its employees from and against any and all loss, cost, damage, or expense of any kind and nature (including, without limitation, court costs, expenses, and reasonable attorneys' fees) ansing out of injury to persons or damage to property (including, without limitation, property of CLIENT, EES CONSULTING, and their respective employees, agents, licensees, and representatives) in any manner caused by the negligent acts or omissions of EES CONSULTING in the performance of its work pursuant to or in connection with this Agreement to the extent of EES CONSULTING's proportionate negligence, if any CLIENT agrees to indemnify and hold harmless EES CONSULTING and its employees from and against any and all loss, cost, damage, or expense of any kind and nature (including without limitation, court costs, expenses and reasonable attorneys' fees) ansing out of injury to person(s) or damage to property (including, without limitation, property of CLIENT, EES CONSULTING, and their respective employees, agents, licensees and representatives) in any manner caused by the negligent acts or omissions of CLIENT or other(s) with whom CLIENT contracts ("CLIENT'S agents to perform work pursuant to or in connection with this Agreement, to the extent of CLIENT's or CLIENTs agents proportionate negligence, if any 5 Resolution of Disputes, Attorneys' Fees The taw of the State of Washington shall govem the interpretation of and the resolution of disputes under, this Agreement If any claim, at law or otherwise, is made by either party to this Agreement, the prevailing party shall be entitled to its costs and reasonable attorneys' fees 6 Termination of Agreement Either EES CONSULTING or CLIENT may terminate this Agreement upon thirty (30) days wntten notice to the other sent to the addresses listed herein In the event CLIENT terminates this agreement, CLIENT specifically agrees to pay EES CONSULTING for all services rendered through the termination date EES CONSULTING, INC CITY OF PORT ANGELES By Gary Saleba By Title President Title 0- LT' Date October 19, 2009 Date J Western Public Agonies Group Additional Budget for Load Control Project EES Consulting Source 2000-2009 Northiv.t Electra: Utility Directory (NWPPA), 2008 WPUDA Sourcebook, 2003 EIA Form 412 2004 EIA Form 861, Utility Supplied Note Allocation percentages assume full parhapabon byall member u6lnies 1 Customers energy sales values reported for 2007 from N W PPA D4eclgry 2 Investment values as reported for 2003 3 Investment values set equal to 2008 Budget Total Budget Labor Expenses Total 0.t80.r 82000 '57900':. 57 500 Customers Energy Sales' investment i Average of Customers, Energy Sales and IMUtrnent Budget Allocation with Cap Without Cap 180% Cap percent of i percent of kllowe0-hours total fetal Indivldua1 Utilities Benton Electnc REA 519,034 017 49% 7 13% Callan, County PUD 0 0% 0 00% Cant Public U4ltlas 5 081 087 000 48 0% 18 00% City of Ellensburg 200 256880 1 9% 2 50% Grays Harbor PUD 982 601 658 9 3% 1731% KI61tas County PUD 72 767 000 0 7% 1 42% Lewis County PUD No 1 929 234755 813% 12 07% Mason County PUD No 1 60 431 080 0 7% 1 50% Mason County PUD No 3 068 687 402 6 3% 12 46% Paafic County PUD No 2 290 313,004 2 8% 5 57% Peninsula Light Company 00% 8 0 00% City of Port Angeles 709 859 006 07% 550% Skamanla County PUD No 1 128 578,272 12% 2 07% Tanner Elemnc Cooperative 07 504,220 0 6% 1 51% Wahluakum County PUD No 1 40 025 690 0 4% 0 88% Marco County Cooperative Power Aesoclation Alder Mutual Light Company 3 887,591 0 0% 0 07% Town of Eatonwlle 24 292 100 0 2% 0 33% Elmhurst Mutual Power and Ught Company 259 445 280 2 5% 3 01% Lakeview Light and Power Company 275,450,539 26% 313% City of Milton 03,932 270 0 6% 084% Chop Mutual Light Company 77 077 410 07% 1 43% Parkland Light and Water Company 118 755 303 1 1% 1 03% Town of Stellacoom 0 0% 0 00% Subt0081 Pierce County Cooperative Power Association 39 315 g 9% 823 440 553 8% 50 003 513 0 0% 7 9% 11 33% 3 8 500 Total 396762 '00O 10 588 719 581 100 0 824203057 1000 1000 10000% 3 57900 J Western Public Agonies Group Additional Budget for Load Control Project EES Consulting Source 2000-2009 Northiv.t Electra: Utility Directory (NWPPA), 2008 WPUDA Sourcebook, 2003 EIA Form 412 2004 EIA Form 861, Utility Supplied Note Allocation percentages assume full parhapabon byall member u6lnies 1 Customers energy sales values reported for 2007 from N W PPA D4eclgry 2 Investment values as reported for 2003 3 Investment values set equal to 2008 Budget Total Budget Labor Expenses Total 0.t80.r 82000 '57900':. 57 500 September 14, 2009 Mr Charles Dawsey Benton Rural Electric Association Post Office Box 1150 Prosser, WA 99350 Mr Doug Mass Clallam County P U D Post Office Box 1090 Port Angeles, WA 98362 Mr Wayne Nelson Clark Public Utilities Post Office Box 8900 Vancouver, WA 98668 Mr Bob Titus City of Ellensburg 501 N Anderson Street Ellensburg, WA 98926 Consulting Mr Rick Lovely Grays Harbor County PUD P O Box 480 Aberdeen, WA 98520 Mr Mark Kielland Kittitas County PUD 1400 East Vantage Highway Ellensburg, WA 98926 Mr Dave Muller Lewis County P U D Post Office Box 330 Chehalis, WA 98532 Ms Steve Taylor Mason County P U D No 1 North 21971 Highway 101 Shelton, WA 98584 Ms Wyla Wood Mason County P U D No 3 Post Office Box 2148 Shelton, WA 98584 SUBJECT: Proposal to Assist in a Direct Load Control Feasibility Study Dear WPAG Managers: Direct load control in a method of demand response that utilizes a control device to briefly curtail major appliances or space conditioning units namely hot water heaters and HVAC equipment in the Northwest. While direct load control isn't a new idea, it is gaining momentum from better technology, successful pilot programs and BPA support. As utilities plan for load growth and increasing BPA demand rates, using controllers to shave consumer appliance load has become an important option for demand response. Additionally, these programs can provide enhanced system reliability and reduce price volatility. Demand response control can benefit both Load Following and Slice customers. Load Following customer can minimize potential demand charges under TRM, which vary from $8.05 /kW -mo in the summer to a high of $9.57 /kW -mo in the winter by implementing direct load control. While Slice customers will not avoid BPA's demand 570 Kirkland Way, Suite 200 Kirkland, Washington 98033 Telephone: 425 889 -2700 Facsimile: 425 889 -2725 A registered professional engineering corporation with offices in Kirkland, WA; Portland, OR, Indio, CA; and Bellingham, WA Mr Larry Dunbar City of Port Angeles P O Box 1150 Port Angeles, WA 98362 Mr Bob Wittenberg Skamama County PUD P O Box 500 Carson, WA 98610 Mr Steve Walter Tanner Electric Cooperative P O Box 1426 North Bend, WA 98045 Mr David Trambhe Wahkiakum County PUD No 1 P 0 Box 248 Cathlamet, WA 98612 Mr Doug Miller Pacific County P U D Mr Terry Huber Post Office Box 472 Pierce County Cooperative Raymond, WA 98577 Association c/o Town of Steilacoom Mr Ray Gnnberg 1030 Roe Street Peninsula Light Company Steilacoom, WA 98388 Post Office Box 78 Gig Harbor, WA 98335 WPAG Managers September 14, 2009 Page 2 charge under TRM they will be hedging their risk against market prices. Slice customers will be reducing the amount of power that they need to acquire in the market during peak load periods when Slice /Block is less than peak loads. Demand response can be an excellent hedging instrument against high market prices during cold snaps. This study will also provide valuable input into the first TRM wholesale rate case as it will give a valuable proxy for the proper level of the TRM demand charge. Based on your request at the last WPAG meeting, EES Consulting has drafted this project scope to explore the real savings potential for WPAG utilities. Scope of Services Several different tasks are required for designing a pilot study. EES Consulting proposes the following tasks. 1) Literature and Review of Previous Pilots a) EES Consulting will first perform a comprehensive literature review of available reports and publications. This will be inclusive of prominent programs in the region, such as the Seattle City Light OpenADR program, Power Shift Program on the Olympic Peninsula and the GoodWatts Program in Oregon. The review will focus on the predicted vs. actual demand savings, implementation process, program and equipment costs and suggested improvements for future pilots. b) Additionally, ESS will contact program managers at regional utilities and discuss the practical experience from their pilot programs. We will summarize the successes, implementation concerns and lessons learned from each project. 2) Determine Demand Response Potential a) Previous __pilot __studies __demonstrated _a _potentiaLsavings_ of 0.2-0.8 kW per household from direct load control of water heater operation in the Northwest. However, the savings a utility can expect within this range depends in large part on their service territory and load. Different segments of the electricity consumer market produce widely varying savings from load control programs A utility interested in demand response programs must have an accurate prediction of savings potential before moving forward with a program. Therefore, EES Consulting will assess the potential for direct load control programs in an individual utility's service territory. We will compare the utility's daily and seasonal load shapes to past programs and determine the expected savings. Additionally, EES will determine the number of households a utility can target by gathering appliance saturations and applicability rates. WPAG Managers September 14, 2009 Page 3 3) Equipment and Technology Review a) EES will investigate the main components to a direct load control system and provide a description of each. This will include the controller, communications equipments and load scheduling platform. b) Cost is an important and often varying factor in direct load control projects. Since the market for control devices is devoid of standard technology and largely in its infancy, previous projects have used slightly different products. Therefore, this section will include a review of potential technology options and a comparison of their costs. While the initial cost of the equipment is important, installation and maintenance costs can also be substantial. We will investigate different system designs (two -way communications, automated, GE ZigBee /Homeplug) and products from manufactures like GridPoint, AscentlQ, Inc and others used in BPA programs. c) Additionally, we will consider how standards are evolving at the national level. EES would like to ensure that early adaptors of direct load control use technology and equipment that match future standards. This will allow pilot programs to be scalable in the future 4) Benefit -Cost Analysis a) EES will perform a detailed benefit cost analysis of direct load control in a utility's service territory. The potential savings calculated in Task 2 will be combined with the required data to monetize values for these benefits. If the utility is a BPA load following customer, this will specifically address the benefits direct load has to daily load shaping. For BPA slice customers, the analysis will address how direct load control can offer insurance against exceeding their Tier 1 allocation and thus market rate power. Additionally, EES will analyze how direct load control will minimize potential demand charges under TRM, which vary from $8.05/kW -mo in the summer to a high of $9.57/kW -mo in the winter, and calculate potential savings. In addition to the demand charge savings, we will investigate the benefits beyond the kW demand savings. These may include energy savings (kWh) both directly from the program and indirectly from increased customer awareness and subsequent changes in behavior. Other non energy benefits such as water savings may also occur. These non demand benefits will be defined, discussed, and quantified where possible. WPAG Managers September 14, 2009 Page 4 b) EES will create different scenarios to compare how program options change the benefit -cost results. This will determine: If water heater controls alone can make a demand response program cost effective, or if other space conditioning units must be included The number of participating households needed to make the program cost effective What are the key price points for cost effective programs? 5) Develop Scope and Action Plan for Pilot Study a) EES will help draft an action plan and recommendations for program implementation. This will define how the utility's contributes to the "development and demonstration pilot programs" goal suggested for demand response pilots under The Council's 6 Power Plan. This will include: Setting incentive levels for participating households Estimating staff time to administer the program Determine a target sample size Designing marketing and advertising approaches Evaluation and data collection Schedule and Budget The overall project will take approximately 4 months to complete. With a start date of October 1, 2009, the project would be completed by January 31, 2010. The following schedule is recommended: Literature and Review of Previous Pilots Determine Demand Response Potential Equipment and Technology Review Benefit -Cost Analysis Develop Scope and Action Plan for Pilot Study October November October November_ October November November December January On budget, EES Consulting bills on a time and materials basis. Our standard billing rates are as follows: President $165 per hour Managing Director 160 per hour Manager 155 per hour Senior Project Manager 150 per hour Project Manager 145 per hour WPAG Managers September 14, 2009 Page 5 Total Senior Analyst 140 per hour Analyst or Engineer 135 per hour Clerical 120 per hour Based on the scope of work described above, the estimated total cost of this study is provided below. It is assumed that this budget is allocated to study participants based on the standard WPAG allocation methodology. Task Task Title Task 1 Literature and Review of Previous Pilots Task 2 Determine Demand Response Potential Task 3 Equipment and Technology Review Task 4 Benefit -Cost Analysis Task 5 Develop Scope and Action Plan for Pilot Study Meetings Very truly yours, Gary Saleba President cc: Dan Sharpe, Alder Mutual Light Company Jamieson Van Eaton, Town of Eatonville Daniel Brooks, Elmhurst Mutual Power Light Robin Rego, Lakeview Light Power Company Katrina Asay, City of Milton Isabella Deditch, Ohop Mutual Light Company Mark Johnson, Parkland Light Water Company Mark Burlingame, Town of Steilacoom Terry Mundorf, MiVIPS &M Estimated Labor Cost $11,800 13,300 9,700 9,600 4,500 9,000 $57,900 We hope this summary proposal's scope of work, budget and schedule are responsive to your needs. Please call Anne or me if you would like to participate in this study. Thanks for thinking of EES Consulting and we look forward to hearing back from you on this interesting, project at your earliest convenience. 4