HomeMy WebLinkAbout000194D Original ContractThe Landing Mall Pilot Participation Agreement Amendment
BPA COPA Commercial Industrial Demand Response Pilot Project
The attached document Catalyst Energy Technologies Demonstration Project at The Landing Mall Design and
Costs Overview December 19, 2011 outlines the scope and cost changes in detail.
The purpose of this amendment is to authorize the following:
1. Project scope change due to the Smart Storage Kit (SSK) installation of a larger inverter (75kW
installed versus 48kW proposed) and design, components, construction assembly costs of the SSK
enclosure.
2. The Landing Mall project funding is to be increased by $22,500 from original estimate of
$60,000* to $82,500. Pursuant to the BPA -COPA DR C &I Pilot Agreement cost share funding
distribution for pilot implementation costs are as follows: BPA's cost share amount $22,500,
COPA's cost share amount $8,000, Catalyst in -kind contribution $60,000 and The Landing Mall
in -kind contribution of $14,500. Below are the proposed and current sources of funds by each
party:
PROPOSED SOURCES OF FUNDS STATEMENT
City of Port Angeles $8,000.00
The Landing Mall $14,550.00
Catalyst Energy Technologies $60,000.00
Bonneville Power
Administration $82,550.00
Total Funding Sources $165,500.00
CURRENT SOURCES OF FUNDS STATEMENT
City of Port Angeles $0.00
The Landing Mall $10,000.00
Catalyst Energy Technologies $50,000.00
Bonneville Power
Administration $60,000.00
Total Funding Sources $120,000.00
Funding Gap ($45,100.00)
Note: Original Pilot Participation Agreement amount includes WSST tax based on the
Catalyst Project Proposal submitted on June 6, 2011. The original controls installation cost
estimate was as follows:
Funding available for controls installation
work
Estimated project cost (external)
Estimated project cost (Internal)
Other costs
Estimated WSST
Total inc WSST
Rounded total
3. All other terms and conditions of the agreement remain unchanged.
$61,187.21
$0.00
$0.00
$5,812.79
$67,000.00
$67,000.00
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The Landing Mall Pilot Participation Agreement Amendment February 10, 2012
AGREED AND ACCEPTED:
City of Port Angeles
Signed:
Name: Epiu
Title:
Address:
Global Energy P ne
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Name: V 3TAM1 Y"\\
Title: \f CC r \A.0 UNA
Address: 5 o `(\CAC L O\
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Phone: C a 14R 2 (Y._ Phone: 3 iot C 1
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Phone:
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Customer
Signed: )P1x
Name: V ia+., l S (LC
Title:
Address: t 1 5 PAL P-O(ft' UQU`Q
The Landing Mali Pilot Participation Agreement Amendment February 10, 2012
This PILOT PARTICIPATION AGREEMENT, made and entered into as of the last signature date written
below, is between Global Energy Partners, LLC, City of Port Angeles, and The Landing Mall ("Customer").
The City of Port Angeles "COPA in partnership with the Bonneville Power Administration ('BPA is
conducting this Commercial and Industrial Demand Response Pilot Project "Project which is designed to
demonstrate Demand Response (DR) capabilities and technologies in the Pacific Northwest. Global Energy
Partners, LLC "Global has been engaged by BPA to manage the Protect.
This Project aims to demonstrate that commercial and industrial ("C &I DR assets can be used to:
Delay or eliminate the need for regional transmission system upgrades;
Reduce peak electrical demand;
Reduce wholesale power supply costs;
Test the ability to dispatch specific C &I loads through automated DR strategies.
In addition to the above goals, BPA will Investigate and collect Information as to the responsiveness of C &I
loads served by COPA to determine the benefits of DR as a tool for assisting BPA meet system loads and grid
conditions.
1. The Customer agrees to participate in the Protect with the understanding that the Customer shall receive
an Equipment/Installation Incentive for the implementation of demand response technologies and
measures at its operating site. Global agrees to pay agreed upon project costs for the design, procurement,
and installation of the automated demand response technologies and measures.
2. The Equipment/Installation Incentive shall be for the reimbursement of costs associated with the design,
procurement, and installation of the automated demand response technologies and measures. The
Equipment/Installation Incentive amount and automated demand response technologies and measures are
defined In Attachment A. The total Equipment/Installation Incentive cannot exceed 100% of the automated
demand response project costs.
3. Global will work with the Customer to develop the specifications for the potential cost- effective automated
demand response technologies and measures. Global will perform a field visit to conduct a pre installation
Inspection to verify the compatibility of existing technology, estimate the demand response potential, and
work with an Installation vendor to identify the scope and cost of the work.
4. Within two weeks after the installation of the automated demand response technologies and measures are
completed, the Customer shall contact Global to schedule a post installation Inspection. A Global
representative will visit the site to verify that that the automated demand response technologies and
measures have been installed and are fit for the use intended.
BPA Pilot Participation Agreement
PILOT PARTICIPATION AGREEMENT
RECITALS
AGREEMENT
000i
1
5. After completion of items 1 -4, the Customer shall provide Global with copies of invoices for project
equipment and construction. Invoices must Include: vendor name /address /phone, itemized listing of
products including quantity, product description, manufacturer, model and other identifying information
as appropriate, and cost details. All information must be provided to Global within 5 days of the post
installation inspection. Upon receipt of the invoices from Customer, Global will submit a request to BPA for
reimbursement. Global will then pay the Customer within 60 days upon the receipt of the invoices from
Customer.
6. After the post installation inspection, the Customer agrees to begin participating in DR demonstration test
events to be scheduled either by the COPA or the BPA. These demonstration test events will evaluate the
technical and economic efficacy of C &I DR for winter, non winter and fast DR applications. The anticipated
number of events will be no more than fifteen (15) for the entire Project, the duration of any single event will
not exceed two (2) hours.
7. In order to receive the Equipmentllnstalation Incentive from Global, the Customer must complete and
submit a W -9. A copy of the W -9 form is included in Attachment B.
8. This agreement shall expire on August 31, 2012, unless the Parties mutually agree to either an extension
or early termination of the Agreement.
9. The Customer shall take adequate safeguards to prevent loss, damage, or theft of the Project Equipment
and control, communication, and monitoring equipment. The Customer shall follow adequate maintenance
procedures to keep the Equipment in good condition. No warranty, expressed or Implied, is provided
except that provided by the Equipment Manufacturer. The Customer agrees that it will not make any claim
or file any action against Global, COPA, or the BPA, its officers, officials, employees, and volunteers in
connection with the Project or use of Project Equipment.
10. The Customer shall indemnify and hold harmless Global, COPA, and BPA, Its officers, officials, employees,
and volunteers from any and all claims, injuries, damages, losses or suits, including attomey fees, arising
or issuing out of or in connection with the Project, except as may be caused by the sole negligence or
willful conduct on part of Global, COPA, or BPA. Neither Global, COPA, BPA, nor the installation vendor
are responsible for any federal income tax liability, which may be imposed on the Customer as a result of
payment of any incentives.
11. In the course of performing the work, Global may be given access to confidential and /or proprietary
commercial, technical, energy consumption, and financial information "Information The Customer agrees
that Global may use Customer's Information as necessary to detail the results of the Project, including
communicating Project data to BPA. Global agrees not to disclose or otherwise make the Information
available to other third parties, and to maintain security procedures and practices practices that comply
with the Federal Trade Commission Red Flags Rules as part of the Fair and Accurate Credit Transactions
Act of 2003; however, BPA may release information provided by Customer to comply with FOIA or if
required by any other federal law or court order. For information that Customer designates in writing as
proprietary, BPA will limit the use and dissemination of that information within BPA to employees who need
the information for purposes of the Protect.
BPA Pilot Participation Agreement
2
AGREED AND ACCEPTED:
Signed:
City of Port Angeles
Signed:
Name:
Title:
Address:
Phone:
Date.
BPA Pilot Participation Agreement
GLOBAL ENER W PARTNIFR,S- 1' CUSTOMER:
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3
Global will work with the control vendor to verify that the automated demand response technology
(vendor's equipment) has been installed and is fit for the use intended and the measures (load -shed
strategies) function correctly at no additional cost to the City or customer. Fit for use intended, constitutes
a fully functional Demand Response Control and Communication System capable of interfacing with the
DRBizNet platform. Global will also work with iJISOL to guarantee DRBizNet connectivity to the Customer
location stated In the Vendor Proposal at no additional cost to the City or customer.
Winter Measure
Descriptions
Measure 1.
Degree of Equipment
Description of Measure Adjustment impacted
Approx 40kW for a maximum
duration of 1 hour. Lesser load
Discharge battery with Max discharge Overall load shed available for longer
short notice (10 mins or 48kWh SF of reduction of the periods based on max
less) 10%. Landing Mall availability of approx 40kWh.
Summer Measure Descriptions
Measure 1.
Degree of Equipment
Description of Measure Adjustment Impacted
Approx 40kW for a maximum
duration of 1 hour. Lesser load
Discharge battery with Max discharge Overall load shed available for longer
short notice (10 mins or 48kWh 5F of reduction of the periods based on max
Tess) 10 Landing Mall availability of approx 40kWh.
Funding available for
controls installation work
Estimated project cost
(external)
Estimated project cost
(Internal)
$61,187.21
$0.00
Load Shed Estimate
Load Shed Estimate
Attachment A
Other costs $0.00
Estimated WSST $5,812.79
Total Inc WSST $67,000.00
Rounded total $67,000.00
Mory Houshmand CEO
Catalyst Energy Technologies
854 Merrill Way
Port Angeles, WA 98362
Mr. Paul Cronauer, Principal
The Landing Mall LLC
115 E. Railroad Street
Port Angeles, WA 98362
Dear Mr. Cronauer,
July 27, 2011
CATALYST
4cnr Til.: •NO OG -s
Catalyst Energy Technologies (CET) is a high technology energy distribution company based in Port
Angeles, Washington with offices in Norwalk Connecticut and distributors in the Philippines and
Indonesia. You can learn more about CET at www.catalvstet.com.
We have developed an advanced highly efficient distributed energy storage system which helps owners
of commercial buildings manage their power costs. Electric energy is stored during times of lower rates
and then used when rates are higher. Our distributed energy systems also have features that provide
value to utilities. Our energy storage capabilities allow utilities to ease the mismatch between periods
when renewable energy resources such as solar and wind are available and when they are actually
needed. In addition, our distributed energy products can help local utilities shape and shed their load
during critical peak periods. These benefits are attractive to owners of commercial buildings for both
direct cost savings and potential utility subsidies of the cost of installing our system.
Our product for commercial building applications Is the Smart Storage Kit (SSK), a proprietary grid -tied
intelligent inverter and with state -of -the -art large format high energy lithium Ion batteries. Because the
Landing Mall is recognized as a leader in adopting renewable energy technoogy it is an ideal commercial
application for a SSK. We propose a multi -Phase technology development and demonstration
partnership between The Landing Mall, CET, and the electric utility of the City of Port Angeles (City). We
are willing to install our new commercial -grade SSK at the Landing Mall on a cost- shared basis with you
and in cooperation with the electric utility of the City. In the first Phase of this partnership CET will
demonstrate the ability of our SSK to charge its battery energy storage system during off -peak hours and
displace on -peak power at the Landing Mali. In addition, CET will show that our SSK can respond to
utility commands to both displace energy and charge the energy storage system upon their command.
We propose to operate the SSK at the Landing Mali at least through August 31, 2012. We consider
showing we can store and discharge energy with the SSK the first Phase of this project. Upon the
successful completion of Phase One after approximately three months, we will propose to you
subsequent development Phases to that enhance the capabilities of the SSK to suit your needs. These
include adding the capability of accepting renewable power generation sources and to act as an
emergency power supply for the Landing Mall, adding more control capability to offset building loads
and to link a number of SSKs together to act as a fast Dispatchable Resource. The City will be invited to
participate with us for these subsequent Phases that will add more capability to the SSK. We want this
SSK to be a showcase for the Landing Mall and the City for energy storage technology.
We propose to provide a CET SSK, an energy meter system with web access, and a controller specified
by the Gty utility to allow it to command the SSK to discharge and charge. We look to the Landing Mall
to provide a suitable location and enclosure for this project, 120V power, and a free Internet
connection. In addition, we propose to work with the Landing Mall and the Center for Community
Design to use this CET development and demonstration site as an opportunity for public outreach and
education on energy management and conservation, and the potential for integrating renewable energy
into our everyday lives. We envision this project as an on -going partnership with the Landing Mall to
advance our knowledge and capability for distributed energy as a community and commercial resource.
CET proposes to provide following on a cost- shared basis:
1) Install one (1) Catalyst Energy Technologies Smart Storage Kit including:
a) One (1) 75 kW grid connected bi- directional intelligent inverter with a liquid to air heat
exchanger for thermal management
b) One (1) three phase transformer
c) 96 160Ah lithium Ion batteries (307V) with an integral Battery Management System
d) One (1) custom battery rack and enclosure
2) install one (1) New GRIDLink• Open ADR Device (GRIDLink° device) in the CET SSK inverter
3) Connect Cat -5/6 Ethernet internet from the Landing Mall to the GRIDLink• device
4) Connect KYZ output from City Utility demand control meter to GridUnk• device
5) Provide One (1) PCubed energy meter and a suitable housing to be installed in the City utility's panel
in the Electrical Room of the Landing Mall
6) Testing and commissioning of all components, controls and communications equipment
The costs associated with this proposal for the CET components for this demonstration are expected to
be $117,000 of which $100,000 is for the hardware and commissioning as detailed below:
75 kW grid connected intelligent bi-directional inverter $42,200
48 kWh of large- format Lithium -ion batteries— $52,800
Custom battery enclosure with Lexan sides and top for educational purposes $5,000
The remaining $17,000 will be used to support the CET SSK, pay for commissioning costs, and cover
administrative expenses as follows:
PCubed power meter with remote viewable output $3,500
IC Systems GRIDLink• Open ADR Device to enable utility control of SSK and installation $3,500
Installation, freight, permitting, and commissioning costs $5,000
Finance carrying costs for up -front procurement of components $5,000
2
In Phase One of this project, CET will be responsible for providing, installing, and commissioning the
components listed above and all necessary wire, conduit, and labor with the exception of the PCubed
energy meter. Because this meter will be connected to the City utility's incoming power panel at the
Landing Mall, a City electrician must perform the installation of this meter. The Landing Mall will be
responsible for providing the outdoor enclosure for the components, the Ethernet connection for the
GRIDLink• device, 120V power to the enclosure for thermal control, and connecting the output of the
SSK to the Landing Mall's electrical panel. CET will obtain the electrical permit for SSK components and
the Landing Mall will obtain the building permit for the outdoor enclosure and the electrical permit for
connecting the SSK.
I realize that you might have some questions regarding the SSK and related components covered in this
proposal so the following is a brief summary of what is included in CET's proprietary distributed energy
storage system.
The 75 kW bidirectional intelligent inverter is tied to the grid, acting both as an inverter to convert the
stored DC energy in the batteries to AC energy and as a battery charger, converting AC energy to DC
energy to replenish the batteries. It also includes a liquid -to -air heat exchanger for inverter thermal
control plus a three -phase transformer that reduces grid voltage to enable internal operation of the
IGBTs that are at the heart of the inverter. The inverter has important safety features and internal
protection circuitry for robust and durable performance in commercial applications. The controls in the
inverter are set to charge the batteries overnight and begin to discharge them mid- morning. The times
for charging and discharging can be adjusted based on our experience if required.
The large format high energy lithium -ion batteries are specifically designed for Industrial energy storage
applications. The pack consists of 96160 Ah battery cells that are combined into modules and linked to
a Battery Management System (BMS). The BMS measures the voltage and temperature of every cell
and performs a host of safety and maintenance chores including cell balancing, current limitations
depending on charge /discharge temperature, and fusing and self protection features. The BMS has the
ultimate say in controlling the flow of energy into and out of the battery pack and is designed to isolate
the pack if any deviations from normal operating conditions are detected. It communicates and works
with the inverter to efficiently and safely store and discharge energy from the pack and keep the pack
healthy. These batteries have long life (more than 3,000 cycles) so we expect excellent durability in use
at the Landing Mall. Because of the educational nature of this proposal, a custom battery enclosure
using see through sides and top will be constructed for this project.
3
The GRIDLink° Device will provide a way for the City's utility to command the SSK to begin charging and
to begin discharging at two different rates. The GRIDLink° Device will be mounted inside the inverter
enclosure and powered from 12V supplied by the inverter. It will control three relays that correspond to
commands for charging and the two rates of discharging. Signals to the GRIDLink° Device will be
received through the Internet connected using existing Cat5/6 wiring at the Landing Mall. It will also be
connected to the KYZ output of a new demand control meter installed by the City.
The PCubed power meter will be connected to the City utility's input panel at the Landing Mall and will
monitor the amount and quality of the power used by the building with the SSK in operation. It will
provide real time data on the power consumption of the Landing Mall on a dedicated website that can
be seen from anywhere there is Internet service. This data stream can be used for educational purposes
by the Landing Mall and the Center for Community Design.
CET will pay for shipping the components to Port Angeles and installing them in an appropriate
enclosure provided by the Landing Mall. We will commission the system after the Landing Mall
connects it to the appropriate building distribution panel and 120V power is supplied for thermal
management of the enclosure. As previously mentioned, we expect the initial Phase to last
approximately three months after which time we will conduct a Project Review and, in consultation with
the City and the Landing Mali, decide on a possible additional Phase or Phases of this project.
CET's goals for entering into this technology development and demonstration partnership are to use the
Landing Mall as the site for its ongoing development and demonstration activities with the SSK and to
establish a long -term relationship with the Landing Mali and the City. Because of the developmental
nature of this project, CET will retain ownership of the SSK during the course of this project. When the
developmental portion of this project is complete, negotiations as to the disposition of the SSK will be
conducted with the Landing Mall and the City.
CET pledges to provide a minimum of$50,000 in cash or in -kind contributions towards the overall cost
of Phase I of this project. We are confident that we can have the SSK ready for installation within a
month after the execution of a contract for this project.
CET looks forward to establishing a partnership with the Landing Mall and the City In developing and
demonstrating this important advance in distributed energy technology.
Sincerely,
Mory Houshmand
President CEO, Catalyst Energy Technologies
4
Attachment B
Form W
(Rev January 2005)
Department of the Treasury
Internal Revenue Service
I N Name (as shown on your Income tax return)
co PO QA (44S•a,QS L*NA. we
Business name, if different from above
C
O
al y
a
0
`o
C c
c
v
a
List account number(s) are (optional)
ai
Part I1
Sign
Here
Individual/
Check appropriate box Sole proprietor
dress number, street, and apt or suite no.)
T X
City, state, and "LIP code
Signature of
U.S. person
Certification
Purpose of Form
Taxpayer Identification Number (TIN)
Enter your TIN In the appropriate box. The TIN provided must match the name given on Line 1 to avoid
backup withholding For individuals, this is your social security number (SSN) However, for a resident
alien, sole propnetor, or disregarded entity, see the Part I instructions on page 3. For other entitles, it is
your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3.
Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number
to enter.
Under penalties of perjury, I certify that.
1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be Issued to me), and
2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal
Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has
notified me that I am no longer subject to backup withholding, and
3 I am a U.S. person (including a U.S. resident alien).
Certification instructions You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup
withholding because you have failed to report all interest and dividends on your tax return For real estate transactions, item 2 does not apply.
For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement
arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must
provide your correct TIN. (See the instructions on page 4.)
2 Date /4'it4 1 �O
A person who Is required to file an information return with the
IRS, must obtain your correct taxpayer Identification number
(TIN) to report, for example, income paid to you, real estate
transactions, mortgage interest you paid, acquisition or
abandonment of secured property, cancellation of debt, or
contributions you made to an IRA.
U.S. person. Use Form W -9 only if you are a U S. person
(Including a resident alien), to provide your correct TIN to the
person requesting it (the requester) and, when applicable, to
1. Certify that the TIN you are giving is correct (or you are
waiting for a number to be issued),
2. Certify that you are not subject to backup withholding,
or
3. Claim exemption from backup withholding if you are a
U S. exempt payee.
Note. If a requester gives you a form other than Form W -9 to
request your TIN, you must use the requester's form if it is
substantially similar to this Form W 9.
For federal tax purposes you are considered a person if you
are:
An individual who is a citizen or resident of the United
States,
A partnership, corporation, company, or association
created or organized in the United States or under the laws
of the United States, or
Request for Taxpayer
Identification Number and Certification
Corporation Partnership Other I. _teL
Give form to the
requester. Do not
send to the IRS,
Exempt from backup
1-1 withholding
Requester's name and address (optional)
Social security number
1 Ik1a -1 1
o
E mployer Identification number
It> I41 &161a IP 17
o Any estate (other than a foreign estate) or trust. See
Regulations sections 301.7701 -6(a) and 7(a) for additional
information.
Foreign person. If you are a foreign person, do not use
Form W -9. Instead, use the appropriate Form W -8 (see
Publication 515, Withholding of Tax on Nonresident Aliens
and Foreign Entities).
Nonresident alien who becomes a resident alien.
Generally, only a nonresident alien individual may use the
terms of a tax treaty to reduce or eliminate U.S. tax on
certain types of income. However, most tax treaties contain a
provision known as a "saving clause." Exceptions specified
in the saving clause may permit an exemption from tax to
continue for certain types of income even after the recipient
has otherwise become a U S. resident alien for tax purposes
If you are a U.S. resident alien who is relying on an
exception contained in the saving clause of a tax treaty to
claim an exemption from U S. tax on certain types of income,
you must attach a statement to Form W -9 that specifies the
following five items:
1 The treaty country Generally, this must be the same
treaty under which you claimed exemption from tax as a
nonresident alien.
2. The treaty article addressing the income
3 The article number (or location) in the tax treaty that
contains the saving clause and its exceptions.
Cat No 10231X Form W -9 (Rev 1 -2005)