3.05 3.5
AGREEMENTSTnerp Connect a Johnson Controls Co—NYISO Demand Response Program-tluu MEGA—3-21-16
RESOLUTION AUTHORIZING AGREEMENT BETWEEN TOWN OF
QUEENSBURY AND ENERGY CONNECT, INC., A JOHNSON CONTROLS
CO., FOR PARTICIPATION IN NYISO DEMAND RESPONSE PROGRAM
THROUGH THE MUNICIPAL ELECTRIC & GAS ALLIANCE
RESOLUTION NO.: ,2016
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED BY:
WHEREAS, for the past seven (7) years, the Town of Queensbury has participated in the
New York Independent System Operator (NYISO) Demand Response Program, a Program by
which the Town's Water Department is paid to be on standby in order to stabilize the electrical
grid during times of stress, and
WHEREAS, to date the Town has received revenues of over $90,000 by participation in
such Program and therefore the Town Board wishes to continue the Town's participation in such
Program, and
WHEREAS, the Town's agreement with its current vendor has ended and therefore the
Municipal Electric & Gas Alliance (MEGA) Program, a purchasing consortium of over 270
municipalities across upstate New York, requested and received proposals and has determined
that EnergyConnect, Inc., a JohnsonControls company (EnergyConnect), submitted the successful
proposal for such Program, and
WHEREAS, the Town Board therefore wishes to enter into an Agreement with
EnergyConnect, and a proposed EnergyConnect Demand Response Master Service Agreement has
been presented at this meeting,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby authorizes the EnergyConnect
Demand Response Master Service Agreement between the Town of Queensbury and EnergyConnect,
Inc., a JohnsonControls company (EnergyConnect), through March 1, 2019 substantially in the
form presented at this meeting and authorizes and directs the Town Supervisor to execute such
Agreement and any other needed documentation, and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor,
Budget Officer and/or Water Superintendent to take such other and further actions as may be
necessary to effectuate the terms of this Resolution.
Duly adopted this 21St day of March, 2016, by the following vote:
AYES
NOES
ABSENT :
2
•
Johnson
'f '
Controls Integrated Demand Resources
ENERGYCONNECT DEMAND RESPONSE MASTER SERVICE AGREEMENT
This Agreement, by and between Town of Queensbury ("Customer") and EnergyConnect, Inc. ("ECI"), a Johnson Controls company,
collectively referred to as("Parties"), is effective,3/1/16 for demand response and regulation services.
Section 1 —General
ECI, as an authorized Curtailment Service Provider to various Regional Transmission Organizations (RTO) and Independent Service
Organizations (ISO), with relationships with various regional utilities to provide demand response and regulation services is hereby
designated to represent the Customer as its exclusive demand response and regulation services provider to register,represent and manage
participation in demand response programs for the facilities listed herein (collectively, the "Facilities") and for the term of this Agreement.
Terms used and not otherwise defined shall have the meaning given them in the respective RTO/ISO or Utility's governing tariff, program
rules,and/or covenants.
Section 2—Term
The term of this Agreement shall commence on the date set forth above and shall remain in effect until 3/1/19("End Date"). Thereafter,this
Agreement shall automatically extend annually, unless either party notifies the other party in writing of the termination of this Agreement at
least 120 days prior to the effective end date. In the case of a property sale, Customer may terminate the agreement without penalty if
Customer submits a request for release in writing to ECI 90 days in advance of effective termination date,along with proof of sale within 10
business days of the sale. In such event Customer will be entitled to any RTO/ISO or utility settled earnings up to the date of sale or date of
assignment as described in Section 10. Where notice or proof of sale is not provided in accordance with the preceding requirement, the
Agreement will self-terminate on the estimated date of sale which ECI will determine at its sole discretion and Customer will forfeit any unpaid
earnings up to the estimated date of the sale. Further, the termination will be deemed a termination for cause where ECI may seek any
penalties assessed to it by any RTO/ISO for early termination.
Section 3—Customer Payments
Payments from demand response programs result from Customer's active program participation as well as satisfactory compliance with all
related program rules. Customer's payment schedule may vary per program structure. ECI shall pay Customer as defined in Appendix 1 of
this Agreement.
Section 4—Allocations of Responsibility&Indemnification
Customer shall provide a Letter of Authorization or appropriate RTO/ISO or utility approval form to their energy supplier and utility, as
applicable, authorizing them to provide information required to register the Customer in the applicable programs and other relevant electric
utility data to ECI(including billing and other relevant utility data).
Registration with Customer's RTO or ISO requires utility data and account numbers. Customer shall provide ECI with copies of utility bills
as requested for registration. Customer will inform ECI in the event of any change in utility information within 45 days of the effective date of
the change.
If distributed generation or back-up generator(s)are used for demand response program participation, it is the responsibility of the Customer
to adhere to all local, state and federal requirements, environmental laws, regulations, use and zoning permits, operational specifications
and maintenance requirements of their generator(s). Customer must provide information relating to their generator(s) outlined on the
Generator Information form. Upon request, Customer must provide ECI with copies of all relevant permits or proof of compliance required
to utilize a generator. Failure of Customer to provide copies of such permits may result in an adjustment to program registration,cancellation
of program registration or termination for cause of the Agreement by ECI. ECI rejects any responsibility or liability for the use of Customer's
generator(s),their eligibility or qualification for use in participation for demand response programs. Further,and notwithstanding anything in
this agreement to the contrary,the Customer will save and hold harmless ECI from any liabilities,claims,expenses,or damages based upon
the ownership or use of its distributed generation or back-up generators.
The parties hereto agree to indemnify each other from any and all third-party liabilities,claims,expenses,losses or damages,including legal
fees, which may arise in connection with its performance of this Agreement to the extent caused by the negligent act or omission of the
indemnifying party. Neither party shall be liable for any special,indirect or consequential damages arising in any manner from its performance
under this Agreement. The total liability of either party hereunder for direct damages, other than with respect to the duty of a party to
indemnify for third-party claims described above,will be limited to the contract price paid to ECI under this Agreement.
Section 5—Modifications and Waiver
This Agreement shall not be modified in any manner unless in writing and signed by both Parties. No waiver of any breach of any provision
of this Agreement will constitute a waiver of any prior,concurrent or subsequent breach of the same or any other provisions hereof,and no
waiver will be effective unless made in a non-electronic writing signed by an authorized representative of the waiving party.
Section 6—Confidentiality
The Parties may provide (the"Disclosing Party") Proprietary Information to the other(the "Recipient") in conducting program facilitation or
management during the term of this Agreement. The Parties agree to treat such information as confidential and proprietary and to protect
the disclosure of such Proprietary information to any third-party. The Recipient will use such care with Disclosing Party's Proprietary
Information as it uses to protect its own confidential information, but in no case with less care than is commercially reasonable and within
industry standards. Information and materials will be considered Proprietary Information regardless of the form or manner of disclosure or
whether provided it is marked"CONFIDENTIAL"or with a similar designation. For clarification ECI Proprietary Information includes, but is
ECI DR Master Service Agreement Company Confidential v.18 3/5/15
not limited to,any reports generated within or outside of GridConnect,any pricing information,and this Agreement. This Agreement imposes
no obligation of confidentiality on Recipient with respect to information that:(a)was in the possession of Recipient before its receipt from the
Disclosing Party, including as part of Recipient's own development process; (b) is or becomes available to the public through no fault of
Recipient; or(c) is independently developed by such Recipient without reference to or use of a Disclosing Party's Confidential Information;
(d)is received by Recipient in good faith from a third party having no duty of confidentiality to the Disclosing Party or(e)is disclosed pursuant
to law, regulation or lawful order or process. JCI may access and use Customer data to provide services to Customer and ECI shall have
no obligation of confidentiality as it relates to providing Proprietary Information to its Affiliates or providing information to a RTO, ISO or utility
where such information is required for registration or facilitation of the program. Further, Customer agrees that JCI and its subsidiaries,
affiliates and approved third party contractors and developers may collect and use Customer building data and related data for any reason,
as long as any external use of the data is reported on an anonymous basis that does not personally identify Customer or any individual.
Section 7—Notices
All notices given under this Agreement must be in writing and except as otherwise expressly provided in this Agreement, must be in a non-
electronic form. Notices shall be deemed given as of the day received by the addressee party via messenger or courier delivery service
and addressed as follows or to such other address as a party may give notice of:
EnergyConnect, Inc. Customer Name: Town of Queensbury NY
901 Campisi Way,Suite 260 Address: 823 Corinth Road
Campbell, CA 95008 City,State,Zip: Queensbury NY12804
Fax:866.858.0478 Fax: 518 798-3520
Attention: Contract Administration Attention: Chris Harington
Section 8—Severability
If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable under any applicable law,
then such provision will be deemed modified to the extent necessary in order to render such provision valid and enforceable;if such provision
may not be so saved, it will be severed and the remainder of this Agreement will remain in full force and effect.
Customer's participation in demand response programs is subject to successful program registration by ECI and acceptance by the applicable
RTO/ISO or Utility. Failure to complete a successful registration or nomination, regardless of reason, will disqualify customer from
participating for that performance period but does not terminate this Agreement, or allow Customer to attempt to register through another
Curtailment Service Provider for the duration of this Agreement. ECI reserves the right to cancel enrollment if Customer fails to reduce load
or adds more load to the grid during Events. ECI will notify the Customer of any cancellations in writing. If enrollment is cancelled, the
Customer will forfeit any unpaid amounts. Any amount previously paid to the Customer remains the property of the Customer. Program
changes that cause significant impact to either the Customer or ECI will allow either party to terminate or modify this Agreement with 45 days
written notice.
Section 9—Rights and Remedies Cumulative
All rights and remedies under this Agreement are cumulative and not exclusive and any reference to,and/or the exercise of,a particular right
or remedy will not exclude or constitute a waiver of any other right or remedy available under this Agreement, at law or in equity.
Section 10—Assignment
Neither party may assign any of its rights or obligations under this Agreement without the other party's prior written consent of which consent
shall not be unreasonably withheld.As a condition precedent to any ECI consent of assignment,the Customer must provide no less than 30
day notification of the date of assignment and contact personnel of the assignee responsible for the program;additionally,the assignee must
be qualified by ECI in its sole discretion for participation in the program. Any assignment or attempted assignment of this Agreement or any
of the obligations or rights under this Agreement are null and void where this consent has not been expressly provided in writing. The
foregoing notwithstanding, ECI may transfer and assign this Agreement without the Customer's consent to any person or entity that is an
affiliate of ECI or that acquires substantially all of the stock or assets of ECI.
Section 11 —Independent Contractors
The parties are independent contractors and nothing in this Agreement will be construed as creating an employer-employee relationship, a
partnership,or a joint venture between the parties. Neither party has any authority to assume or create obligations or liability of any kind on
behalf of the other.
Section 12—Governing Law;Venue;Attorneys' Fees
This Agreement will be governed by the laws of the State in which the Facility is located, excluding conflict of laws provisions. Each party
hereby irrevocably consents to the exclusive jurisdiction and venue of the local federal courts unless no federal subject matter jurisdiction
exists, in which case each party consents to exclusive jurisdiction and venue in the State Courts of the State where the Facility is located.
Both parties waive all defenses of lack of personal jurisdiction and forum non-convenience with respect to such courts. In any action or suit
to enforce any right or remedy under this Agreement or to interpret any provision of this Agreement, the prevailing party will be entitled to
recover its costs, including reasonable attorney fees.
Section 13—Interval Meter Data Requirement
Customer understands that interval meter data is a requirement for program compliance and that it is the Customer's responsibility to provide
such data by means of an interval meter through its utility. If needed and upon agreement between Customer and ECI, ECI will assist
Customer with the installation of interval metering through its contacts with the local utility. Customer is responsible for any installation costs
and fees incurred by ECI from the utility to provide Customer with mandatory interval metering capability. Installation of interval metering
must be completed before Customer's acceptance into the program. ECI cannot be held responsible for,or assume the risk for,any problems
attributable to the content, accuracy, completeness and consistency of all interval meter data, materials, and information supplied by
Customer or its utility. Any data collected during the course of this Agreement will become ECI data and ECI shall have any and all rights to
the data.
ECI DR Master Service Agreement Company Confidential v 18 3/5/15
Section 14—Entire Agreement
This Agreement and applicable Appendices, Addendums, Modifications, SOWs, added hereto through mutual agreement constitute the
entire agreement between the parties regarding the subject matter hereof and supersedes any and all prior and contemporaneous
agreements or communications with respect to such subject matter.
The Parties hereby approve and accept these terms.
EnergyConnect, Inc. Customer:Town of Queensbury
(Signature) (Signature)
(Printed Name) (Printed Name)
(Date) (Date)
ECI DR Master Service Agreement Company Confidential v.18 3/5/15
Johnson
014
Controls Johnson Controls,Inc.
Integrated Demand Resources
Demand Response Summary — Queensbury Water District
ATTN: Chris Harrington
Town of Queensbury Date.March ii,2016
823 Corinth Rd. Queensbury, NY 12804
Earnings Potential:Johnson Controls, Inc. has been asked to verify the opportunity for the Town of Queensbury for
participation in NYISO Demand Response(DR) programs.After a thorough engineering assessment,Johnson Controls
has determined that the selected facilities can conservatively curtail 750 kW of aggregate peak load,which would yield
roughly 537,803.63 annually.Additional revenue of may be available from Utility-based programs(new programs with
proposed revisions in pricing to be set by the NY PSC in late February 20.16). There are minimal costs to upgrade utility
meters and install data loggers(approximate cost$1,100.00 NYSERDA incentives may be available), which will be paid
out of earnings,presenting no upfront costs to the Queensbury Water District.
Financial Benefits Explained:The facilities included in this summary are located within National Grid territory and
NYISO's Load Zone F.These facilities can participate in NYISO SCR summer and winter programs and National Grid CSRP
& DLRP(Tier 1) summer programs.The table below shows the determined net estimated earnings for each property.
Facilities Est. Curtailment
• Queensbury Water District
Estimated Total Curtailment 750 kW
Demand Response Program �a' NYISQ SCR `� fe 'R s a ior�a o
x
Est.Total Curtailment'(kW) 750 kW 750 kW 750 kW
(Rounded down per Program) (Actual) (Actual)
Net Price/kW 'Month $3.00 $3.50 $4.25
Number of Months 6 5 5
Performance 100% 100% 100%
Est.Earnings(NYISO
Summer/Winter Seasons) $17,415.00 $8,437.50 $11,953.13
CSRP/DLRP(Summer only)
Total Annual Earnings $37,803.63
Please note that the table above are estimates and do not include additional energy payments based ont excess performance of
nominated curtailments(maximum incentive$0.43/kWh for SCR program and$0.11/kWh for each utility program during a called
event or test). These estimates also do not consider transmission loss factors or performance factors,both of which vary by site.
Steven Mango
Sr.Account Executive—Integrated Demand Resources
Johnson Controls,Inc. www.johnsoncontrols.com/demandresponse Confidential Information
60 E.42nd Street,29th Floor Dir: (201)755-5342
New York,NY 10165 Email:Steven.Mango @jci.com Page 1 of 2
Johnson
'
Controls Johnson Controls, Inc.
Integrated Demand Resources
New York Program Specifics:Johnson Controls can help you identify the right programs for your facility,optimizing
for your institution's objectives and technical capability to curtail load.Currently,there are programs available through
the New York Independent System Operator(NYISO)that runs the wholesale power market,as well as evolving utility
programs across the State. Programs vary(see table) by the response time required for load sheds,the number of
events, and the revenue that can be expected for a given megawatt of load shed.
k
Program -. IYISO SCR F e /kw-month
National Grid CSRP
$3.50 National Grid DLRP
spot,f Monthly,&Strip Auctions
$4.25/kw-month
5 events 5 events
Summer.May-Oct
Seasons May-September May-September
Winter:Nov-Apr
c s 365 pays . . . � `6
_;, Excluding Holidays "y l.� ° tor-,t ��
� r X'
Average coincident Load(ACL)-Avg -Customer Baseline(CBL)-Avg Top 5 Customer Baseline(CBL) Avg Top 5
Baseline of Top 20 hrs from the past year ,�g days from the past 10 like days days from the past 10 like days
.� fi _ , '�'T"- ' i~: s F °� y`M @c'a.`'. ,� Fy+ -4'
l'} 1 r season - 1-"w"R ti 1'"`2'`r. "ANz
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Max.Events/season No limit No limit No'limit
,t 2 per season" o o E sy. v ' t JO t
Event Length =: Not to exceed 4 hours Not to exceed;4 hours Not to e?( 6 hours
at".M r r `vst a 21 hours Pnor
�� `k; '4 `72nd 2hours Prior r� nee; May y1 st
start date start date start date
Executive Summary: We understand the Queensbury Wastewater Treatment operates highly regarded facilities.To
maintain this leadership and to continuously improve your ability to serve the needs of your constituents,Johnson
Controls offers you complete engineering,technical and financial mechanisms that will help you manage your energy
spend and promote sustainability benefits well beyond the earnings associated with demand
response (DR).
Combining the power of automation and controls with easy-to-implement DR technology,our '"!PLE"" "'r
Active Load Management strategy has repeatedly proven to generate significant revenue for
EARN
our customers using existing assets and with no financial risk.We can offer the Town of
Queensbury a full range of options to choose from,along with our innovative GridConnect® REINVEST
platform to manage your participation in the easiest manner possible.This unique approach
allow customers to leverage program earnings to fund a "virtuous cycle"of efficiency and
equipment upgrades while complementing ongoing conservation and sustainability goals.
Johnson Controls is also an industry leader in Building Automation/Controls, HVAC, Fire&Security, Distributed Energy
Storage, Energy Efficiency, Facilities Operation and Maintenance services,etc.As a Fortune 100 company with over$40
billion in annual revenue and a 130+year history in helping facilities perform better,Johnson Controls'combination of
long-term presence,customer focus and financial stability can assure Albany County Airport Authority of timely
payments as we work together to optimize your DR earnings and broader energy savings within the context of your
operational realities
Sincerely,
Steven Mango
Sr.Account Executive—Integrated Demand Resources
Johnson Controls, Inc. www.johnsoncontrols.com/demandresponse Confidential Information
60 E.42nd Street,29th Floor Dir: (201)755-5342
New York, NY 10165 Email:Steven.Mango @jci.com Page 2 of 2
Johnson :'
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} T0WN OF QUEENSBURY WATER TREATMENT FACILITY
Queensbury Water Treatment Plant
823 Corinth Road
Queensbury NY
Johnson Controls is proud to submit our assessment report for demand response at the Queensbury
Water Treatment Plant. Johnson Controls, iDR (Integrated Demand Response), is extremely successful in
the wastewater sector where many customers participate in programs to help save the grid. Switching
from the grid to an emergency generator is a common method of reducing load and often permissible by
the EPA and DEP. In some cases, our iDR customers are within city limits or states that preclude
generator use. JCI will closely monitor generator permit requirements. However, by using strategies
instead of generators our customers are successful in curtailment programs year after year, not only
earning additional revenue but more importantly helping to preserve the electric grid. We included some
basic strategies in our report as suggestions to review in the event that the use of generators becomes
prohibited. No values are included since they are included with the generator estimate.
Overview: An energy assessment was completed on February 4, 2016.
In the case of Queensbury Wastewater Treatment, we reviewed conditions at the location and considered
all equipment and co-generations. After a fairly extensive conversation and tour of the facility we
deemed generation use the best and most viable option. We estimated summer loads to be at 750
kilowatts.
Total Potential Curtailment: .750 Megawatts
1
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1 CONTENTS
2 Load Allocation- 3
3 Particulars- 3
4 Curtailment Strategy 2. Turbine/Co-Generation Error! Bookmark not defined.
5 Curtailment Strategy 3. Pump Motor Control Speed 5
6 Curtailment Strategy 4. Reheats/Space Heaters/Open Overhead Doors 6
7 Curtailment Strategy 5. Lights 7
8 Curtailment Strategy 6.Communication 8
9 Instructions 9
2
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2 LOAD ALLOCATION:
Main Misc.Other Other
Treatment Pumps/Motors/Mechanical lighting HVAC Administrative Offices Operating
Functions Functions
320 60 15 15 10 10 25
Estimated Load Allocation
i Main Treatment Pumps
31 6%
a Misc Other
Pumps/Moto rs/Mechanical
Functions
71% tiljghting
Note: Loads are based on projected use,not size.
3 PARTICULARS:
Schedule: In order to start generators and switch from the grid qualified personnel must be on site. Also,at the
conclusion of an event the aforementioned staff members must be on location to assure safe transfer
back to the grid.
Controls: Controls are installed at this location.
Generator: There is a large 1,000 kW Diesel Generator on site. During excessive conditions the generator is loaded to
750 kilowatts.
3
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Curtailment Strategy 1. Generator
Description:
The emergency standby generator should be started,as per instructions,when an event is called.
Building(s)Space(s)Impacted:
All equipment included on the generator circuit
Sequence of Operation:
Start generator,switch transfer switch as described in instructions
Scope of Work:
Manual process.
Curtailment Value: 750 kW
Fuel Usage: When shifting from the grid to generation,not only will you be compensated for your participation,there will be an
energy savings since you'll be off the grid completely. Depending on how electricity is purchased these prices could be greatly
inflated. However,fuel is used when switching to the generator. Enclosed below is a general fuel usage chart. In this case we
are using a 1,500 kW generator loaded to 455 kW,or 30%. The chart below describes roughly a 32 gallon per hour use of fuel.
The total hours run would then be multiplied by 32 and then multiplied by the price of fuel to determine the fuel cost to run the
generator. As an example,if the generator runs 32 gallons per hour for 2.0 hours you'd use 64 gallons,plus 50%cooldown period
with no load for 30 minutes 8.0 gallons,and the cost of fuel$3.00 a gallon,your fuel cost to run this generator would be 32
gallons per hour x 2 hours=64 gallons+8 gallons for cooldown=72 gallons x$3.00,Cost=$216.00
Fuel Chart:
4
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20 0.6 0.9 1.3 ....1 '1.6 �,
30 1.3 1.8 2.4 2.9
40 1.6 2.3 1.2
60 1.8 2.9 3.8 4.8
75 2.4 3.4 4.6 61
100 2.6 4.1 5.8 74
125 3.1 5 7.1 9.1
135 3.3 5.4 7.6 9.8
150 3.6 5.9 8.4 10.9
175 4.1 6.8 9.7 12.7
200 4.7 7.7 14.4
230 5.3 88 12.5 16.6
250 5.7 9.5 13.6 18
300 6.8 11.3 16.1 21.5
350 7.9 13.1 18.7 25.1
400 8.9 213 28.6
500 11 18.5 26,4 35.7
600 13 2 22 31.5 42.6
750 16.3 27A 39.3 53.4.
1000 21.6 364 521 71.1
1250 26.9 45.3 65 88.8
1500 32.2 54.3 77.8 106.5
1750 375 63.2 90.7 124.2
1000 42.8 72.2 103.5 141 9
2250 48.1 81.1 116 4 159.6
4 CURTAILMENT STRATEGY 3. PUMP MOTOR CONTROL SPEED
Description:
No pump changes can be made at this point and as long as we have the use of standby generators.
Building(s)Space(s)Impacted:
Non-critical areas
Sequence of Operation:
RMP's and GPM's can be explored for optimization at a later date if we'd like to consider values.
Scope of Work:
Pumps may be controlled via Metasys
Curtailment Value: Values recognized through standby generator.
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4
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5 CURTAILMENT STRATEGY 4. TREATMENT/FEEDS/PUMPS
Description:
Any loads not on the generator circuit add load. Consider reducing the introduction of all heat loads during an emergency event.
Building(s)Space(s)Impacted:
Common areas that can be isolated
Sequence of Operation:
Upon notice,turn off all non-essential heat sources.
Scope of Work:
Set up global command on BAS that eliminates only non-essential units.
Curtailment Value: Values recognized through standby generator.
6
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6 CURTAILMENT STRATEGY 5. LIGHTS
Description:
Isolate/turn off any non-essential light throughout the facility. lights can add load. Use natural lighting when/where possible.
Building(s)Space(s)Impacted:
All Safety Procedures,Disability Acts and OSHA Standards must be adhered to. Repetitious lighting should be the only
consideration.
Sequence of Operation:
Upon notice,turn off all non-essential lights.
Scope of Work:
Mark all relevant lights on panels to prepare for isolation.
Curtailment Value: Values recognized through standby generator.
Energy efficient use of lighting
7
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Controls
There are two main ways to save energy used for lighting.One is to use more energy efficient lighting.The other is to reduce the
operating time of the lighting.
Fluorescent lamps are so far the most popular type of lamp used in offices and many warehouses.The most common type of
fluorescent lamp is tubular and linear in shape.There are three generations of linear tubular fluorescent lamps:1st
generation 112 lamps with a diameter of 38 mm(1Y'),2nd generation T8 lamps with a diameter of 26 mm(1")and the 3rd
generation T5 lamps with a diameter of 16 mm(5/8").
T5 fluorescent lamps have a higher luminous efficacy than T8 or T12 lamps.Luminous efficacy indicates how much light a lamp
generates from the energy it consumes.The higher the value,the more energy efficient the lamp is.The luminous efficacy of T5
lamps is about 100 Im/W,while those of T8 and T12 lamps are only about 80 Im/W and 70 Im/W respectively.
All fluorescent lamps need ballasts to maintain the current passing through the lamp at a certain value.There are mainly two
types of ballasts:electromagnetic ballasts and electronic ballasts.Although electronic ballasts are more expensive,they have
higher energy efficiency and can save money in the long run.Besides,electronic ballasts generate less heat during operation and
therefore help reduce energy used for air conditioning.
The energy used in lighting systems can also be reduced by using automatic controls.For example,infrared or ultrasonic motion
sensors are used to detect the presence of people and automatically turn lights on or off accordingly.
- 112 1st Generation(1930's)
' '"" TS 2nd Generation(19801s)
15 3rd Generation(2000)
7 CURTAILMENT STRATEGY 6. COMMUNICATION
Description:
Energy use in areas where administrative functions are performed can be minimized. In some cases this adds up significantly.
Notice is provided 30 minutes before an event. Staff should prepare at that time.
Building(s)Space(s)Impacted:
All Safety Procedures,Disability Acts and OSHA Standards must be adhered to.
Sequence of Operation:
Upon notice,turn off all non-essential charging equipment,copiers,printers etc.that draw energy.
Scope of Work:
Prepare e-mail notification.
Curtailment Value: Values recognized through standby generator.
8
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8 INSTRUCTIONS
• Notification that the grid could experience difficulty is given 21 hours prior to an event. This is preliminary notice.
Periodically,these notifications are withdrawn before the scheduled event.
• Formal notification and emergency dispatch is provided 30 minutes prior to the scheduled event.
• When notification is provided emergency/backup generator should be started and ramped up.
• To minimize possible momentary interruptions,transfer load to generation when the unit is running.
• Make sure all equipment is running. Reset motors/pumps if necessary following safety procedures.
• Always observe all OSHA standards and assure safe procedures when implementing strategies.
• Upon completion of the event,transfer load back to the grid with generator in operation.
• Allow for cooldown mode on the generator.
• Document any issues or concerns with the generator or transfer switch and service the equipment accordingly.
• Assure all pumps,fans and equipment are in full operating order.
9
��er_.
October 14,2015
To: Ron Feldstein,Chairman and CEO—MEGA
Mike Cunningham,Director Governmental Services—St.Lawrence County
From: Anna M.Baluyot,Gene Salerni,and Gordon Boyd—EnergyNext,Inc.
Date: October 14,2015
Subject: St.Lawrence County/MEGA Bid for Provision of Curtailment Services
St.Lawrence County,on behalf of MEGA,received bids on October 9,2015 for Provision of Curtailment Services.
St.Lawrence County(the County),on behalfofthe Municipal Electric and Gas Alliance(MEGA),requested proposals
to select one or more preferred Curtailment Services Providers (CSPs) for eligible MEGA participants throughout
New York State.MEGA's goal is to allow eligible electric accounts of MEGA participants to participate in demand
response programs of the New York Independent System Operator(NYISO)and local utilities.The selection criteria
for the CSPs are based on qualifications, experience, and fee proposal. Additionally, the successful proposer(s)are
expected to assist in program expansion and marketing of the MEGA program to both existing MEGA participants
who are not currently participating in a DR program,as well as other municipal and private customers in New York
State throughout the term of the contract.
We have carefully reviewed all bid sheets and other materials submitted by the bidding companies.We have analyzed
the bids to ensure that the bidders'proposals comply with the bidding requirements outlined in MEGA's Request for
Proposals of September 15,2015,which was advertised and posted by St.Lawrence County on the New York BidNet
System, and distributed by EnergyNext to a list of more than 25 Curtailment Services Providers registered with the
New York Independent System Operator(NYISO).
A. Principal Findings
1. We accepted and analyzed proposals from Direct Energy,ECS,and Johnson Controls.Section V of the RFP
outlined the proposal requirements. Of these, the CSPs' answers to the following items carried the most
weight in our evaluation:proposed customer marketing and engagement,qualifications,willingness to enter
into Program Agreement with MEGA,and fee structure.
2. We did not receive any formal Declination to Respond from any proposers. This form was included in the
RFP as a way to understand reasons for prospective proposers not responding the RFP.
3. Only one proposer,ECS,submitted Exceptions to the Proposal.ECS'exceptions were not material.
B. Analysis
1. All bids were reviewed for exceptions to any provision or requirement outlined in the RFP that a proposer
was unable or unwilling to comply with.Consideration of any material exceptions allowed us to evaluate all
bids on a level playing field in order to identify the most competitive response to the RFP.
2. The demand response programs evaluated by CSP in their bids were NYISO's Special Case Resources
(SCR),and the Distribution Load Relief Program(DLRP)and Commercial System Relief Program(CSRP),
which are utility-based programs.
EnergyNext,Inc. Curtailment Services RFP Recommendation
NPeril
ext'
3. For purposes of this analysis,we focused on the SCR NYISO program and the value created for a hypothetical
customer of 1.5 megawatts capacity that engages in 10 hours of curtailment,where the value of energy is
$500 per megawatt hour.
4. The fee structure for all bidders is below.Johnson Controls' fee structure varied per utility territory,which
is why a range is shown in the table.For detailed results please see Exhibit A:Bid Results.
Customer% CSP% MEGA%
Energy Capacity Energy Capacity Energy Capacity
Johnson Controls 81-86 81-86 9-14 9-14 5 5
ECS 85 75 10 20 5 5
Direct Energy 70 70 25 25 5 5
5. For the hypothetical group of customers,one each in the 10 utility territories outlined in Exhibit A,the total
customer value created by Johnson Controls is 8%greater than ECS,and 17%greater than Direct Energy.
6. Johnson Controls created the most value for the hypothetical cohort of customers across all utilities.
C. Recommendation
Johnson Controls proposed a fee structure that created the most value for customers compared to all
respondents to the RFP.Their bid reflects thoughtful analysis which took into consideration the specific value
in energy versus capacity payments, as well the difference in capacity and energy payments by utility
territory. Their strategic fee design, their qualifications, and willingness to enter into a MEGA Program
Agreement indicate that Johnson Controls is the winning bidder of the RFP for the Provision of Curtailment
Services,and EnergyNext recommends that Johnson Controls should be awarded the bid.
EnergyNext,Inc. Curtailment Services RFP Recommendation 2
EXHIBIT A
Bid Results
Municipal Electric and Gas Alliance(MEGA)
RFP for Provision of Curtailment Services
ENERGY CAPACITY Direct Energy ECS Johnson Controls
Summer SCR Winter SCR
1.5 MW*10 2015* 2015/16** Energy Capacity Value to Energy Capacity Value to Energy Capacity Value to Johnson vs. Johnson vs.
Utility Zone hours*$0.50/kwh _ ($/kW-mo.) ($/kW-mo.) Percent Percent Customer Percent Percent Customer Percent Percent Customer D.E. ECS
NYSEG A-F $ 7,500 $ 3.50 $ 1.25 70% 70% $ 35,175 85% 75% $ 38,438 86% 86% $ 43,215 $ 8,040 $ 4,778
NYSEG G-I $ 7,500 $ 8.50 $ 3.73 70% 70% $ 82,299 85% 75% $ 88,928 86% 86% $ 101,110 $ 18,811 $ 12,183
RG&E B $ 7,500 $ 3.50 $ 1.25 70% 70% $ 35,175 85% 75% $ 38,438 81% 81% $ 40,703 $ 5,528 $ 2,265
Nat Grid A-F $ 7,500 $ 3.50 $ 1.25 70% 70% $ 35,175 85% 75% $ 38,438 86% 86% $ 43,215 $ 8,040 $ 4,778
CHGE E $ 7,500 $ 3.50 $ 1.25 70% 70% $ 35,175 85% 75% $ 38,438 81% 81% $ 40,703 $ 5,528 $ 2,265
CHGE G $ 7,500 $ 8.50 $ 3.73 70% 70% $ 82,299 85% 75% $ 88,928 81% 81% $ 95,232 $ 12,933 $ 6,304
O&R G $ 7,500 $ 8.50 $ 3.73 70% 70% $ 82,299 85% 75% $ 88,928 81% 81% $ 95,232 $ 12,933 $ 6,304
Con Ed H-I $ 7,500 $ 8.50 $ 3.73 70% 70% $ 82,299 85% 75% $ 88,928 81% 81% $ 95,232 $ 12,933 $ 6,304
Con Ed J $ 7,500 $ 15.50 $ 6.67 70% 70% $ 144,921 85% 75% $ 156,023 81% 81% $ 167,694 $ 22,773 $ 11,672
PSEG LI K $ 7,500 $ 5.30 $ 1.64 70% 70% $ 48,972 85% 75% $ 53,220 81% 81% $ 56,668 $ 7,696 $ 3,448
$ 663,789 $ 718,703 $ 779,002
*Historical prices for Summer 2015,May-October. Prices for Summer 2016 not yet available.
**Actual prices for Winter 2015/16,November-April.
Based on Payments for a 1.5 MW customer participating in the SCR Program
Prepared by EnergyNext,Inc.
TO: Curtailment Services respondents
FROM: St.Lawrence County and Municipal Electric and Gas Alliance
(EnergyNext,Inc.)
DATE: September 30,2015
Subject: MEGA Curtailment Services RFP,Questions and Answers:
Below are questions received by MEGA's consultant,EnergyNext,Inc.,prior to the close of the bidder
question period September 29,along with the answers.
1.) A supplier represents many of the customers provided in"Attachment G",how will this current
agreement affect the existing agreements in place? Answer: The RFP and MEGA Program Agreement
would affect only new customer agreements with municipalities wishing to use the MEGA program to
obtain a Curtailment Service Provider(CSP).
2.) The RFP indicates that MEGA will receive a 5%share. Can you please elaborate how this
percentage was determined?Will the 5%stem from the customer's or ECS' share? Answer: This
administrative fee/commission equitably reflects MEGA's effort in developing a curtailment services
program,informing our participants of it,and competitively procuring a provider of such services in
conformance with State law. MEGA's goal is to achieve maximum energy cost savings for its
participants. Evaluation of RFP responses will consider the best economic arrangement from the
customer's viewpoint And as noted on the Fee Proposal Sheet,all fees are based on the percentage of
payments made from the NYISO,including the 5%fee to MEGA.
3.) The accounts that were provided in the exhibit, are they bound to contract with the preferred
vendor? Answer: No customers are bound to contract with the preferred vendor. The list represents
MEGA's existing energy supply customers. They,along with any others that may participate in future,
represent the cohort of eligible customers for this program.
4.) Are the accounts provided looking for assistance with generators and permitting? Answer: It is
anticipated that the CSP would provide assistance as needed with generators and permitting.
5.) What is the number of opportunities,by utility and/or NYCA zones,that have peak loads ranging
between 0-100 kw, 101-250 kw,251-500 kw, 501-1000 kw,and+1001 kw? Answer: MEGA does not
routinely track customer peak loads but this information will be obtained from our electric suppliers
and provided to the winning bidder. However,based on annual electric consumption records,it is
estimated that MEGA customers have approximately 16 accounts above 1,000 kw,40 accounts between
500 kw and 1,000 kw,100 accounts between 250 kw and 500 kw,and 200 accounts between 100 kw
and 250 kw. All accounts are in NYSEG,RG&E,National Grid, Central Hudson,and Orange&
Rockland utility territories.
# # #
The Power of Partnership
MUNICIPAL ELECTRIC&GAS ALLIANCE
A Local Development Corporation
P.O.Box 88 •Ithaca,New York 14851
Phone: 1-518-306-1996 http://www.megaenerey.org
CURTAILMENT SERVICES ENDORSEMENT: Winter 2015
Dear MEGA Participant,
MEGA is pleased to announce the launching of a program to provide our participants with an opportunity
to get more for less through energy"curtailment services."
After an extensive competitive process,conducted in partnership with St.Lawrence County,MEGA has
selected Johnson Controls as a preferred partner to assist members with participation in Demand
Response(DR)programs that will help reduce the overall cost of electricity and operations. JCI was the
successful proposer in our competitive RFP due to its 130-year history, strong financials, local presence
and because their fee proposal provided greatest value to MEGA participants. In addition,JCI has a
proven reputation in complex engineering projects including automation,controls,energy efficiency,
demand response,distributed energy storage,microgrids,HVAC,and systems integration.
With DR programs, facilities like yours are paid by the electric grid for the ability to curtail load and
manage usage profile during times of high energy usage.Johnson Controls has helped hundreds of
facilities earn millions of dollars in DR programs nationwide,all while protecting the core mission of its
customers and keeping them in control of their operations.Johnson Controls is a$42 billion multi-
industrial leader with offices in New York City,Albany, Syracuse,Rochester,Buffalo,Ballston Spa,
Niagara Falls,Long Island,Amherst,Hawthorne,Victor,Westchester,to name a few.
How Does this Benefit You?Opportunities to participate in DR are expanding statewide with programs
available through the New York Independent System Operator(NYISO),as well as through your local
utility. To take advantage of these opportunities,the right DR partner plays a critical role by using a
collaborative approach to identify the right programs and curtailment strategies for your facility,thus
maximizing your DR earnings and energy savings.
In the coming weeks,you may be contacted by Steven Mango of JCI to ask if you would be interested in
qualifying any of your larger electric accounts for the DR program.
Details of the procurement process are available on request to our consultants at EnergyNext, Inc.,518-
580-9244,or by email to info@energynext.com. Any other questions may also be directed to
EnergyNext.
Sincerely,
"/2,..c. fr.
Ron Feldstein,President&CEO
Encl.
The Power of Partnershi
MUNICIPAL ELECTRIC&GAS ALLIANCE
A Local Development Corporation
P.O.Box 88 •Ithaca,New York 14851
Phone: 518-306-1996
http://www.me2aenergv.org
NEWS FROM:
Municipal Electric and Gas Alliance
November 23, 2015
Contact: Ron Feldstein,President&CEO
607-434-3333
GETTING MORE FOR LESS:
MEGA ANNOUNCES CURTAILMENT SERVICES PROGRAM
CANTON. The Municipal Electric and Gas Alliance,a purchasing consortium of more than 270
municipalities across upstate New York,has found a way to get more money to its participants in return
for using less electricity.
Ron Feldstein,MEGA's President and CEO,announced this week MEGA's new Curtailment
Services program,in which EnergyConnect,Inc.,a division of Johnson Controls,Inc.was the successful
competitive proposer,providing a more generous revenue share with customers that cut back or curtail
electric usage when the grid is under stress. The bid was conducted in partnership with St.Lawrence
County,which issued the bid and approved a"piggybacking"resolution allowing all municipalities in the
state to take advantage of the program.
"MEGA's programs have been a great benefit to our county for a number of years,"said Joseph
Lightfoot,Chair, St,.Lawrence County Board of Legislators. "MEGA's expertise and the group-buying
approach, give us meaningful market power,and procurement support,both of which are of great benefit
to our taxpayers."
Utilities and the New York Independent System Operator,which runs the grid,occasionally offer
larger customers the option of cutting back usage to relieve congestion and stress in the electric grid. The
economic value is shared with the customers,and consultants managing the customers' participation
charge a fee for doing so.
"Demand-response programs have been around for years,"said Feldstein,"but curtailment
consultants have charged a wide range of fees, sometimes leaving customers with less than they deserve
for the value they provide. Our competitive procurement showed that curtailment service providers can
afford to trim their fee,leave more of the rebate with customers,and still provide the required services."
Under the MEGA program,Johnson Controls has set its fees for each utility area in the state,and
they are lower(more generous to the municipal participant)than from the other proposals MEGA
received.
1
"We are pleased that MEGA has selected Johnson Controls as the ideal partner to assist its
members manage energy costs via enhanced participation in demand response programs,"said Terrill
Laughton,Vice President and General Manager,Integrated Demand Resources,Johnson Controls.
"Opportunities to participate in DR are expanding statewide through both NYISO and utility programs.
We look forward to working collaboratively with MEGA members by leveraging our local presence and
facility expertise to optimize the value of DR participation."
MEGA is the endorsed energy supply and services procurement program of the New York State
Association of Counties,and also supports both the New York Conference of Mayors and New York
State Association of School Business Officials.
In the coming weeks,MEGA will distribute information to its customers,and ECI will follow
through with initial contact and information gathering to determine eligibility. Municipalities interested
in considering a DR program for their accounts should contact MEGA's consultants,EnergyNext,Inc. at
518-580-9244,or info @energynext.com.
# # #
2
Johnson
. Controls
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Curtailment Strategy 1. Generator
Description:
The emergency standby generator should be started,as per instructions,when an event is called.
Building(s)Space(s)Impacted:
All equipment included on the generator circuit
Sequence of Operation:
Start generator,switch transfer switch as described in instructions
Scope of Work:
Manual process.
Curtailment Value: 750 kW
Fuel Usage: When shifting from the grid to generation,not only will you be compensated for your participation,there will be an
energy savings since you'll be off the grid completely. Depending on how electricity is purchased these prices could be greatly
inflated. However,fuel is used when switching to the generator. Enclosed below is a general fuel usage chart. In this case we
are using a 1,500 kW generator loaded to 455 kW,or 30%. The chart below describes roughly a 32 gallon per hour use of fuel.
The total hours run would then be multiplied by 32 and then multiplied by the price of fuel to determine the fuel cost to run the
generator. As an example,if the generator runs 32 gallons per hour for 2.0 hours you'd use 64 gallons,plus 50%cooldown period
with no load for 30 minutes 8.0 gallons,and the cost of fuel$3.00 a gallon,your fuel cost to run this generator would be 32
gallons per hour x 2 hours=64 gallons+8 gallons for cooldown=72 gallons x$3.00,Cost=$216.00
Fuel Chart:
I
4