Staff recommends the City Commission favorably consider the proposed strategy and the development of a Load Reduction Credit Rider rate option available for customers taking service under the General Service – Demand rate schedule.
Expanding on the previously approved use of existing City-owned emergency generation to reduce the “demand” component of our monthly FMPA power supply costs, the use of customer-owned generation provides the same opportunity to lower the City’s power supply costs. Staff proposes to partner with customers that have and would be willing to operate existing customer-owned emergency generation during high demand periods to reduce our monthly FMPA power supply costs and the savings would be shared with the customer whose actions created the power supply cost savings.
1. Approve the proposed development of a Load Reduction Credit Rider; or,
2. Such alternative action as the Commission may deem appropriate
Variable power supply cost savings depend upon actual load reduction and FMPA adjusted rates.
Prepared by: _Sabrina Hubbell________
Attachments: Yes__X__ No ______
Advertised: ____Not Required _X_____
Attorney Review : Yes_X__ No ____
Reviewed by: Dept. Head _Paul Kalv
Finance Dept. _____JB___________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING DEVELOPMENT OF A LOAD REDUCTION CREDIT RIDER RATE OPTION AVAILABLE FOR CUSTOMERS TAKING ELECTRIC SERVICE UNDER THE GENERAL SERVICE - DEMAND RATE SCHEDULE; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Commission hereby authorizes staff to develop a “Load Reduction Credit Rider” rate option available for customers taking service under the General Service - Demand rate schedule.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _8th ___ day of _June___, 2008.
Draft Load Reduction Credit Rider
Load Reduction Credit Rider (Rider LRC-1) is offered by the City of Leesburg (City) to a qualifying non-residential customer (Customer) that can be called upon by the City to reduce
Customer’s electrical load during the Coincident-Peak Period of certain Peak Management Days, defined below. Such load reduction will enable City to reduce its wholesale power costs from Florida Municipal Power Agency (FMPA). This rider enables the City to share a portion of the wholesale power cost savings with Customer by applying a Monthly Load Reduction Credit to Customer’s electric bill, under the terms and conditions described below.
Rider LRC-1 is available only to a non-residential customer that meets all of the following criteria:
1. Customer is currently served under the following non-residential rate schedule with a non-coincident monthly billing demand: General Service – Demand (GS-D)
2. Customer has a monthly peak demand of at least 100 kW during at least three months of a twelve month period; and
3. Customer is able to reduce its electrical load during the Coincident-Peak Periods when called upon by the City.
APPLICATION FOR RIDER
Customer must make an initial written application to City in order to begin receiving credits under Rider LRC-1. In determining whether to approve the application of Customer, City may consider the number of customers already being served under the rider, City’s expected power cost savings under the FMPA Wholesale Rate, anticipated changes in City loads, effects of other load management programs, and any other considerations deemed important by the City. City is under no obligation to approve applications for credits under Rider LRC-1.
TERM OF RIDER
The initial term of Rider LRC-1 shall begin October 1, 2009 and end on September 30, 2010.
Commencing October 1, 2010, and annually thereafter, Rider LRC-1 shall automatically renew for one (1) year increments, provided, however, that either the Customer or the City may terminate Rider LRC-1 effective on or after October 1, 2010, by giving written notice to the other party at least sixty (60) days prior to any such termination date.
REDUCTION OF CUSTOMER ELECTRICAL LOADS
During the term of this Rider, the Customer will reduce its electrical loads during the Coincident-Peak Period on Peak Management Days, defined below through shift changes, powering down machinery, chillers and other motors or electrical loads, or exercising installed emergency generation.
Peak Management Days are defined as those non-holiday weekdays during which the City determines a high probability exists that the Coincident-Peak Period will occur. The following days of each calendar year are considered holidays: New Years Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. In the event that any of the foregoing Holidays falls on a Saturday, the preceding Friday shall be deemed to be the Holiday. In the event that any of the foregoing Holidays falls on a Sunday, the following Monday shall be deemed to be the Holiday.
The Coincident-Peak Period is defined as the one hour of each month during which the maximum energy is delivered to consumers by the Florida Municipal Power Pool (FMPP). The Coincident-Peak Period will generally occur on a Peak Management Day as follows:
June through September 2:00 PM to 6:00 PM
December through February: 7:00 AM to 9:00 AM and 2:00 PM to 6:00 PM
Remaining months: 7:00 AM to 9:00 AM and 2:00 PM to 8:00 PM
The Customer will determine the method of load reduction it desires to use: shift changes, equipment/operations management, or exercising installed emergency generation and the City will determine the method of notification to adequately equip the Customer with the information needed to effect load reduction. The City will notify Customer through the process described below to reduce electrical loads only on Peak Management Days. Upon notification by the City of a Peak Management Day, Customer will take steps to reduce electrical loads during the Coincident-Peak Period.
The City will provide notification of Peak Management Days to the Customer by automatic signal or another method as mutually agreed. The City will use diligent efforts to provide notice to the Customer of Peak Management Days. However, the City does not guarantee that notice will be provided. The Customer will hold the City harmless in connection with its response to notification or the lack thereof.
DETERMINATION OF CUSTOMER PEAK DAY LOAD REDUCTION
For each month, City will analyze the Customer hourly metered kW loads to compute the
Customer Peak Day Load Reduction as follows:
1. Determine the Customer Average Daily Non-Coincident Demand (kW) as the average of the Customer’s highest integrated clock hour kW demands on each of the Peak Management Days in the month. This computation will be made for each Peak Management Day in the month, regardless of the Customer’s action or inaction to reduce loads on those days.
2. Determine the Customer Coincident-Peak Demand (kW) as Energy (kWh) delivered by the City during the Coincident-Peak Period of the one Peak Management Day on which FMPP experienced the highest average load during the Coincident-Peak Period (i.e., the basis for monthly demand charges to the City under the FMPA All Requirements Project Rate Schedule). This computation will be made for that Coincident-Peak Period, regardless of the Customer’s action or inaction to reduce loads during the Coincident-peak Period.
3. Compute the Customer Coincident-Peak Load Reduction (kW) as the difference between the Customer Average Daily Non-Coincident Demand and the Customer Coincident-Peak Period Demand. The computed Customer Coincident-Peak Load Reduction shall never be less than zero.
ALTRNATE DETERMINATION OF CUSTOMER PEAK DAY LOAD REDUCTION
Where Customer installed emergency generation output is metered, the Coincident-Peak Load Reduction shall be the metered generation Energy (kWh) output during the Coincident-Peak Period.
DETERMINATION OF MONTHLY LOAD REDUCTION CREDIT
The Monthly Load Reduction Credit shall be computed and applied to the Customer’s monthly
Electric bill as follows:
Monthly Load Reduction Credit ($) = (a) * (b). Where,
(a) is the Customer Coincident-Peak Period Load Reduction (kW) as defined above; and,
(b) is the Load Reduction Credit Rate ($/kW-month).
MONTHLY LOAD REDUCTION CREDIT RATE
The monthly Load Reduction Credit Rate ($/kW-month) will be one-half of the sum of the billing month “Current FMPA Adjusted Rates” for “Demand Charge - Capacity” and “Demand Charge – Transmission.”
City will revise the Load Reduction Credit Rate applicable for any month to reflect changes in the FMPA All Requirements Project Demand Charge Adjusted Rates.
RESPONDIBILITY FOR METERING OF CUSTOMER LOADS
City will install, or cause to be installed, and own the metering and associated metering equipment, communication equipment, and/or telemetry equipment required for measuring the hourly kW demands and energy of the Customer. Customer will pay all costs related to the purchase, installation, ownership, operation, maintenance, or leasing of such equipment. The metering, communications, and telemetry equipment shall meet functional specifications required by City.
Where appropriate to obtain meter readings, Customer shall have the right to install, maintain, and use similar duplicative metering, communication, and telemetry as check meters. Upon request of Customer, City shall provide Customer with copies of hourly data for the kW demands of the Customer and, upon reasonable prior notice of Customer, City shall provide Customer with copies of any other data, information or reports that City acquires from or produces by the metering equipment or the check metering equipment.
In the event the metering equipment is inoperative due to either equipment failure, the performance of necessary maintenance, or otherwise, readings from check metering equipment, if available, shall be used, provided such check metering is functioning properly. In the absence of meter data and data from station operating logs, City shall estimate the required data in the manner it deems practicable.
City and Customer shall coordinate the maintenance of metering, communication, and telemetry equipment and shall endeavor to minimize adverse effects of such maintenance on metering of the hourly demands of the Customer.