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HomeMy WebLinkAbout25J - WATER PRODUCTION FACILITY ~ ~ REQUEST FOR 8;OUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JUNE 21, 2004 TITLE: APPROVED AGREEMENT WITH SOUTHERN CALIFORNIA EDISON COMPANY FOR A DEMAND BIDDING PROGRAM FOR WATER PRODUCTION FACILITIES 0 As Recommended 0 As Amended 0 Ordinance on 1st Reading 0 Ordinance on 20d Reading 0 Implementing Resolution 0 Set Public Hearing For ~./ ~/ ~ CONTINUED TO FILE NUMBER ~/ RECOMMENDED ACTION Direct the City the Clerk of the ~dison Company ~acilities . Attorney to prepare and authorize the City Manager and Council to execute an agreement with Southern California for a Demand Bidding Program for water production DISCUSSION The Southern California Edison Company has implemented a Demand Bidding Program for large electrical power customers. The program purpose is to reduce power consumption during periods of high demand. Customers with a total demand of at least 200 kilowatts are eligible. The City of Santa Ana water production facilities meet this criteria. The Demand Bidding Program is entirely voluntary with no financial risk to the City. During a power shortage event, Edison will request bids from participating agencies to reduce power consumption. The City would determine which, if any water production wells and/or booster pumps could be idled. Edison would pay the City up to $0.50 per kilowatt-hour of actual demand reduction. ENVIRONMENTAL IMPACT In accordance with the California recommendation is not considered a environmental documentation is required. Environmental Quality Act, CEQA project. Therefore, the no 8 25J-1 Agreement with Southern California Edison Company June 21, 2004 Page 2 FISCAL IMPACT Revenue generated under this agreement is dependent upon Edison's power needs and the City's ability to idle pumps during peak demand periods. A typical city well with a 250-kilowatt load would generate approximately $125 per hour in electrical savings to the City while idled under the program. {2 APPROVED AS TO FUNDS AND ACCOUNTS: oma / Director f..! Mgmt. Services Agency JGR/rb/6.21.04!AgreemntSCE 25J-2