council information: electrical aggregation

8/21/2019 Council Information: Electrical Aggregation

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~ t Q / ,Q (\\Q City of Troyu ~TROY CITY COUNCIL

COMMIITEE MEETING NOTICECOUNCIL CHAMBERS, CITY HALL100 S. MARKET STREET, TROY, OHIOWEDNESD Y , J NU RY 29 2014, 7: PM

Utilities Committee (Tremblay [Chm.], Clark, Twiss1 Provide a recommendation to Council regarding authorizing the Director of Public Service andSafety to enter into a three-year agreement with First Energy Solutions to provide electric power

generation to Troy households and small commercial businesses. Consideration of emergencylegislation requested.

Safety Health Committee Oda [Chm.], Clark, Heath)1. Review of Resolution supporting the Regional Green Initiative.

1-27-2014cc: CouncilMayorMr. TitteringtonMr. LivingstonMr. Stickel

Department HeadsChamber of CommerceGovernment ClassBoard of EducationMedia


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UTILITIESOMMITTEE


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~ t Q / ,Q f\\0 City of Troyu ~

TO:FROM:DATE:

MEMORANDUMMrs. Baker President of Co llPatrick E J Titterington ~January 27 2014

Patrick E. J TitteringtonI - - -

100 S Market StreetP. 0 Box 3003Troy Ohio 45373www .troyohio.govphone: 937) 335-1725

. ..fax: 937) [email protected]

SUBJECT: GOVERNMENTAL OPT OUT ELECTRIC AGGREGATION PROGRAM APPROVALOF AGREEMENT WITH FIRST ENERGY SOLUTIONS

RECOMMENDATION:That Council authorizes the Director of Public Service and Safety to enter into a three-year agreementwith First Energy Solutions to provide electric power generation to Troy households and smallcommercial businesses. So that citizens can receive the lower rate offered by First Energy Solutions asearly as the April 2014 billing cycle we ask that emergency legislation be considered.BACKGROUND:The history and background of the Governmental Opt-Out Electric Aggregation Program is discussed inthe attached memorandum.REQUESTED ACTION:It would be appreciated if you would assign to a Committee of Council consideration of emergencylegislation authorizing the Director of Public Service and Safety to enter into a three-year agreement withFirst Energy Solutions to provide electric power generation to Troy households and small commercialbusinesses.

Encl.Cc: Mayor BeamishD. Swan


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ity of TroyEngineering Department

TO Patrick E.J. Titterington, Director of Public Service and SafetyFROM Deborah Swan, P.E., City EngineerSUBJECT Electric AggregationDATE January 27, 2014

RecommendationThat City Council pass emergency legislation on February 3, 2014 and authorize you tosign an electric aggregation contract with First Energy Solutions for a term of threeyears at a fixed rate as outlined in the attached analysis.Key Timeline Dates

November 2011-voters in the City of Troy overwhelmingly approved a ballotissue giving the City of Troy authority to implement an opt out residential andsmall business electric aggregation program.

November 2012-Schneider Electric was hired to assist in the development of aPlan of Operation and Governance. February 2013-the City of Troy Electric Power Aggregation Plan of Operation andGovernance was submitted to Public Utility Commission of Ohio (PUCO) andapproved 45 days later. October 2013-PUCO issued final decision re DP L rate case. December 2013-the City issued Request for Proposals (RFP) to the electricproviders in Ohio that have history with electric aggregation. January 16, 2014-RFPs received and analyzed by Schneider. January 27, 2014-Mayor and key City staff review Schneider recommendation.


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ElectricAggregation RecommendationJanuary 27 2014 - Page o

January 29, 2014-Troy City Council Utilities Committee meeting recommendationto full City Council (proposed) February 3, 2014-Troy City Council emergency legislation passage (proposed) February - March 2014-Notifications sent to all residential and small business(


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City of TroyMonday January L tRf P Results

Summary of idsDiscount to Tariff Generation

FirstEnergy Solutions (FES) 3 years: 28% 4 years: 24% 5 years: 18%

DPL Energy (DPLER) 3 years: 18.5% (negotiated) 4 years: no bid 5 years: no bid

Duke Energy Retail Service No Bid

EP Energy No Bid

AII I n-Fixed Price FirstEnergy Solutions (FES)

3 years: 0.0526 4 years: 0.0540 5 years: 0.0549

DPL Energy (DPLER) 3 years: 0.05825 4 years: 0.06025 5 years: 0.06235

Duke Energy Retail Service 3 years: 0.0579

EP Energy 3 years: .05657


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Most Competitive Bids28% Discount id Fixed Price ( 0.0526 per kWh)Avg Savings by Customer Type Avg . Savings by Customer Type

Residential 163.57 Residential 208.53 Residential Heating 184.82 Residential Heating 178.64 Commercial (SP) 219.68 Commercial (SP) 256.29 Commercial (TP) 932.00 Commercial (TP) 1,087.32

Aggregate Savings Aggregate Savings Residential 709,726 Residential 904,829 Residential Heating 192,953 Residential Heating 186,498 Commercial (SP) 62,389 Commercial (SP) 72,787 Commercial (TP) 175,217 Commercial (TP) 204,417TOT L 1,140,285 TOT L 1,368,530

Overall Bill Impact Overall Bill Impact 14.42% on average 17.93% on average

ccounts OT Included in ggregation ProgramAccounts with annual usage of 700,000 kWh or more Percentage of I nco me Payment Plan Customers

7.2% of eligible customers are PIP Residents & businesses currently under contract with third partysuppliers

41.7% already in a supply agreement Residents & businesses that have requested to be on the PUC DoNot Aggregate List Recognized national accounts Lighting accounts/meters


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omparableGovernment ggregations No recent discount deals for municipalities within DP&L territory Recent fixed price deals (most are 1 year deals)

Village of New Paris (DPLER) 0.0656 150 term fee Preble County (FES) 0.0580 50 term fee Clinton County (OPLER) 0.0549 75 term fee Jackson Township (OPLER) 0.0549 75 term fee City of Wilmington (DPLER) 0.0529 75 term fee

Comparable City of Troy fixed price deal 3 years) City of Troy (FES) 0.0526 0 term fee

term fee = ermination fee

Schneider Electric Recommendation Supplier: FirstEnergy Solutions Pricing: All-ln-Fixed Price @ 0.0526/kWh Term Start: April 2014 Term Length: 36 months (3 years) omments

Credit is approved Full requirements (no usage bandwidth) Fixed price includes energy, capacity, congestion, RPS, ancillaries, andline losses At this time, FES is unable to price 14 accounts Ability to offer consolidated and budget billing FES is able to offer civic grants and green energy in pricing No Cancellation Fee Ability to enroll new accounts on a quarterly basis


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nalysis Schneider recommends Troy fix their energy price beginning with theApril 2014 meter read in order to take advantage of savings in theDayton Power Light market versus current tariff . Based on the currenttariff, Schneider is recommending a fixed price contract instead of adiscount to tariff because the fixed price results in n estimated228,245 in additional savings versus the discount to tariff price. Schneider is also recommending that Troy contract a 36 month term inorder to take advantage of the lack of wholesale energy premiums for2015 & 2016, and also to receive the lowest fixed price across all te rms. Schneider is also recommending that Troy contract with FirstEnergy

Solutions because they offer the most competitive price and meet all ofthe requirements that Troy has requested: ability to budget andconsolidate bills, no cancellation fees and ability to provide customerservice.S, 1fl f n ~ r c -

Risk ImplementationRisks

Tariff rates could settle lower than the fixed energy price due to subsequentutility auctions. Market rates could fall below the fixed energy price. Market rates could increase making a longer term more economical overall. Hourly index prices could settle below the fixed price. All pricing is indicative, electric power pricing is the most volatile commodity,and prices can change prior to contracting.

Implementation A FirstEnergy Solutions contract has been sent to Troy for review. The contract will need to be reviewed and negotiated by Troy andSchneider, prior to requesting executables. Troy will need to sign a contract by approximately February 12, 2014 inorder to possible meet a April2 14 enrollment, the start date would bedependent on how quickly the contracted supplier can provide opt-outinformation to residents.


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Comparison of Other Dayton Area Aggregation ContraCity Supplier Price Term Star t Term LengthVillage of New Paris PLER 0.0656 3 1 2014 1 yearCity of Wilmington PLER 0.0529 1 1 2014 1 yearClinton County PLER 0.0549 4 1 2014 1 yearJackson Township PLER 0.0549 4 1 2014 1 yearPreble County FES 0.0580 11 1 2012 18 monthsCity of Troy FES 0.0526 4/1/2014 3 years


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Comparison of Estimated Savings with First Energy Solutions ggreAccounts Accounts 28% Discount 28% Discount 28% Discount F

Class Total (Zero Usage) Total Savings Avg. Savings Bill Impact % Toential Non-Heating 4,339 17 709,726 163.57 14.85%

Heating 1,045 1 192,953 184.82 14.39%291 7 62,389 219.68 11.94% 189 1 175,217 932 . 13.84%

5,864 26 $1,140,285 195.32 14.42% $residences that have separate accounts due to the use of high electrical demand devices, such s electric heat pumps.

1,000,000900,000800,000700,000600,000500,000400,000300,000200,000100,000

0Residential Non-Heating

Savings y Rate Class

Residential Heating * Commercial (Single Phase) 28 Discount Fixed Price

Total Savings Total Savings


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S FETY HE LTHCOMMITTEE


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Patrick E. J TitteringtonI - - - ...t Q / ,Qt\\ City of Troyu ~ 100 S Market StreetP. 0 Box 3003

TO:FROM:DATE:SUBJECT

MEMORANDUMSafety & Health o m mPatrick E. J. Titterington kJanuary 28, 2014

Troy , Ohio 45373www troyohio govphone: 937) 335-1725fax: 937) 339-8601patrick. itterington @troyohio gov

RESOLUTION SUPPORTING THE REGIONAL GREEN INITIATIVE

The attached draft no longer contains references to Green America or that Exhibit or Attachment andfocuses on the more generic ideals of being green and environmentally friendly. While it doesspecifically reference the Dayton Regional Green 3 (DGR3) initiative, it does not mention the website orthe attachment related to it. Since DRG3 focuses on local initiatives and not any kind of social policyagainst specific businesses or industries, and since this is the crux of the regional effort, it is felt thereshould be some reference to it in the resolution. You'll note that the Resolution title is more generic.Also, the language is references being cost effective, reasonable and feasible throughout more of theWhereases and the Therefores .If there are members of Council who are not able to attend the Committee meeting for any reason andwould like to suggest other language changes, perhaps those members could provide the Chair withsuggested language to be discussed at the Committee Meeting.

Encl.


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Redrafted for Committee 1-29-2014

RESOLUTION SUPPORTING EFFORTS IN THE MIAMIVALLEY TO ENCOURAGE REGIONAL SUSTAINABILITY

WHEREAS the City of Troy Comprehensive Plan, laws, regulations and policies recognize the need tobalance support for community growth with the sustainability of the environment, the economy, and a healthycommunity; and

WHEREAS the City of Troy supports The Concentrated Development Vision of the Miami ValleyRegional Planning Commission's Going Places Initiative, which emphasizes rehabilitation, repurposing andpreservation of regional assets and infrastructure, attached hereto as Exhibit A; and

WHEREAS the City of Troy strives to be a sustainable City by incorporating reasonable, feasible andcost effective sustainable practices into City operations and facility renovations through energy and naturalresource conservation, reuse, recycling, and waste reduction; and

WHEREAS the City o Troy's support or sustainable initiatives is determined through a separateevaluation o each proposal, program, regulation, and policy for its feasibility and cost effectiveness; and

WHEREAS the City of Troy desires to demonstrate responsible stewardship of resources to raiseawareness and educate our businesses, employees, residents, and community to enhance a sustainableregion; and

WHEREAS the City of Troy recognizes the importance of a well-known regional sustainability programsuch as the Dayton Regional Green 3 in attracting companies, workforce, and people to the area; and

WHEREAS the City of Troy agrees that it is in the best interest of the City to support regional efforts toachieve community goals for a balanced approach to long term quality of life for a sustainable region;

NOW THEREFORE BE IT RESOLVED BY the Council of the City of Troy, Ohio, as follows:SECTION : That the Troy City Council supports feasible and cost effective efforts that enhanceregional sustainability.

SECTION II: That the Troy City Council recognizes and supports the Miami Valley's mission topromote green government, business, and personal practices to ensure the sustainability of our region and itsnatural resources and to enhance the quality of life for our citizens.

SECTION Ill: That the Troy City Council challenges its businesses and residents, where cost effectiveand reasonable, to improve practices so that the community can achieve the goals listed in Sections IV and Vbelow.

SECTION IV: That the City of Troy will pursue goals that support regional sustainability and theDayton Regional Green 3 efforts over the next three years by challenging the community to help meet regionalgoals including but not limited to:

a 1,500 Certified Green Businesses with energy benchmarking for 200 buildings;b 30,000 Facebook fans;c 25% residential/commercial recycling rate for all of Miami County;d 100,000 trees planted;e 50 new community/school gardens/urban agriculture sites;f 50 sites that incorporate sustainable practices such as rain gardens, green roofs, or parking lotswith pervious surfaces; and,g Development and/or redevelopment of riverfront corridor amenities to promote economicdevelopment, including adding 1 new or improved water trail access site, 3 bike trailconnections, and increasing by 10% the number of cyclists using trails.


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SE TION V That the City of Troy will encourage the green efforts included below, where costeffective and reasonable but which are less measurable but worth encouraging:

a Conserve or restore additional greenspace, stream or river bank areas;b Revise development policies (codes, ordinances, regulations) that encourage sustainablepractices by land users and developers;c Install Compressed Natural Gas (CNG) and electric vehicle charging stationsd Purchase CNG and/or electric vehicles;e Encourage increased recycling and composting efforts by businesses;f Extend miles of bike trails and host events to promote alternative transportation such as Biketo Work Day ;g Achieve silver level certification as a Bicycle Friendly Community;h Support recycling events at public parks;i Create energy benchmarking for public buildings;j. Promote new LEED buildings;k Implement Green Streets principles;I Add walkability design standards to all new buildings;m. Develop and implement green purchasing policies;n Promote residential on-site com posting through educational programs;o Implement municipal code revisions that allow for habitat friendly landscaping and naturalgrowth areas;p Partner with regional storm water management entities to educate residents/businesses aboutwatershed protection; andq Create natural habitats on city and/or county owned property.

SE TION VI: That the City o Troy will, when representatives are available, join the Greater DaytonRegion in participating in media promotions to share common sustainability topics, such as energy conservationactions, pushes to other networks, and sharing o accomplishments during Earth Day events, to employees,residents, jurisdictions, institutions, and businesses.

SE TION VII: That this Resolution shall be effective at the earliest date allowed by law.

Adopted: President of Council

Approved:

Attest: Clerk of Council Mayor


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Going Places Preferred Future Land Use Scenario:

O ZoneAreas with the least densedevelopment and the leastamount of developmentdiversity.

The Concentrated Development VISIONDensity Diversi ty Index 2040Divlnd40

Principles: Development in this scenario will be concentrated around regionalassets and in areas that already have the infrastructure to support it. Therehabilitation and/or repurposing of vacant and underused structures wouldbe encouraged , along with a more broad commitment to infill development -whether it makes use of existing structures or vacant lots. The preservation ofagricultural land and other open space would e a priority, upon agreement bythe property owner as well as encouraging more connection and cooperationbetween the Region 's communities.

DZ 3oz...1 0 1 ~ 5

D.Zone 2Areas with a moderatedensity level and small-tomoderate levels of development diversity..

;

Characteristics:Encourage the rehabilitation and/orrepurposing of ex ist ing structures.Focus on the maintenance ofexisting infrastructure (roads, water,sewer, etc.).Locate any new development in areaswith existing infrastructure (roads, water,sewer. etc..Revive the Region's older communities. Preserve prime farmland and supportagricultural enterprise .Improve the quality of educationalopportunities throughout the Region .Foster a sense of connection andcooperation between the Region'scommunities.Increase the number and quality oftransportation options. . .

Encourage development around theReg ion 's assets. Encourage the rehabilitation and/orreuse of vacant industrial sites.Encourage energy-efficient buildingpractices and the retrofitting of olderstructures for energy efficiency.Use land in a way that bu ilds a sense ofcommunity. Maintain and expand the Region 'sparks, natural areas, and recreationamen ities (recreation centers, bikeways,rivers, etc.).Encourage the development of quality,realistic affordable housing throughoutthe Region .Revive the Reg ion's core city - the Cityof Dayton .

I Areas that may be either lessdense with a higher diversityor more dense with a lowerdevelopment diversity.

Areas with higher densitylevels and higher levels ofdevelopment diversity.Areas that are both denseand diverse, containing atleast two types or development.

council information: electrical aggregation

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