Loading...
HomeMy WebLinkAboutC-3163 - Rebate agreement under Edison's clean power program1 9 0 Si =' 81997 I APPROVED TO: Mayor and City Council Members FROM: Public Works Department 0 September 8, 1997 CITY COUNCIL AGENDA ITEM NO. 6 C -31 (03 SUBJECT: APPROVE REBATE AGREEMENT UNDER SOUTHERN CALIFORNIA EDISON'S CLEAN POWER PROGRAM RECOMMENDATION: 1. Approve a rebate agreement with Southern California Edison for the Dolphin and Tamura wells. 2. Authorize the Mayor and City Clerk to execute the agreement on behalf of the City. DISCUSSION: During the design phase of the Dolphin and Tamura wells, representatives from Southern California Edison (SCE) informed the City of SCE's Clean Power Program (CPP). The CPP provides a rebate to customers who purchase energy - efficient electric motors rather than gas operated engines. The City's estimated rebate ranges between $100,000 and $150,000 for the Dolphin and Tamura wells where the City installed four (4) electric motors. A rebate range between $100,000 and $150,000 has been estimated because SCE has not completed their power analysis of our new motors. The exact rebate is calculated based upon annual operating hours used and the total new kilowatts added to the Edison distribution system through the installation of the electric motor. The actual rebate will be determined in September 1997 after our wells are fully operational. A copy of SCE's brochure describing the CPP is attached for additional information along with a copy of the rebate agreement. The Public Works Committee considered this item at its August 25, 1997 meeting and authorized staff to forward the agreement to City Council for approval. iSouthelkalifornia Edison Rebate Agreement September 8, 1997 Page 2 CONCLUSION: It is staffs recommendation that the City Council approve the rebate agreement. Respectfully submitted, PUBLIC WORKS DEPARTMENT Don Webb, Director (2�6 .�.._..��. .. Davidson Utilities Manager EGD:tam Attachment: Copy of Rebate Agreement 0 0 4 is uwlxrRV cwrowu EDISON M E015U.,' INTER \'JTII >1'.rL`O Cwnpny • • PRODUCTS & SERVICES NEW CLEAN POWER REBATE MAKES IT EASIER TO INSTAIJ. OR REACTIVATE ELECTRIC MOTORS INTRODUCING THE CLEAN POWER PROGRAM Southern California Edison is pleased to introduce a new pro- gram which provides a rebate for customers who purchase or reactivate energy -efficient electric motors. THE NEW CLEAN POWER PROGRAM The Clean Power Program (CPP) provides an incentive for customers who wish to install or reactivate highly efficient, environmentally - friendly electric motors. The program was designed to offset the costs of installing new motors or modifying operations. If you rely on non- doctric prime movers such as engines, electric motor can add to your bottom line and can help you avoid costly environmental compliance WHAT APPLICATIONS QUALIFY FOR THE CPP7 A wide range of industries involved in pumping, processing, or compressing, air, gas, oil, water, refrigerants, waste and other fluids are all good candidates for the CPP. HOW IS THE CPP CALCULATED? The rebate amount offered to the customer under the CPP is calculated based on annual operating hours used and the total new kW load added to the Edison distribution system through the installation of the electric motor. For example, a customer who installs a 200 kW electric motor operating for 5,000 hours /year would qualify for a $25,000 rebate (200 kW x $125 - $25,000). please m chart beloat Incentives are calculated baud upon incremental nameplate kW and operating boon a �. Operating Operating Operating Operating a less Than 2000 2001 -4000 4001.6000 More Than 0001 If the customer is of to: Hours Per Year Hours Per Year Hours Per Year Hours Per Year INSTALL an electric motor INSTEAD of a viable non- $75AcW $95AcW $125/kW $150/kW electric option REPLACE an engine a $75AcW MAW $12WkW $150/kW turbine with an electric motor RE -START idled electric motors (that have been idled $20AcW $30W $40/kW j $501kW for at least 2 years) 0 more about qualifying for the cash incentive or other programs. Internet address: (www.edisonx.com) SOUIMFR�CAI1ipIN1• EDISON An E060NINY AWAL- C� HOW DO 1 QUALIFY FOR THE CPP? There are three scenarios under which a customer can qualify for the CPP rebate • The customer installs an electric motor rather than another viable non - electric option • The customer replaces an operating engine or turbine with an electric motor • The customer reactivates electric motors idled for at least 2 years The incentive chart (on page 1) shows the rebate amounts for customers with different operating profiles To see if you qualify, please contact your Edison representive for further details. WHY USE ELECTRIC MOTORS FOR PUMPING, COMPRESSION, OR PROCESSES? Electric motors can help you improve your bottom line because they are eas- ier to operate and require less mainte- nance than non - electric options With electric motors you don't have to worry about fluctuations in fossil -fuel prices or meeting emissions requirements Edison customers who use non - electric drivers to pump, compress, or process water, air, gas, oil or other fluids can benefit from the many advantages . electric motors ELECTRIC MOTORS ARE HIGHLY EFFICIENT Electric motors are much more efficient than engines or turbines— you can do more work with a smaller motor and less energy input. ELECTRIC MOTORS ARE BETTER FOR THE ENVIRONMENT Both stationary and mobile engines are considered significant sources of air pollution. Electric motors, however, emit virtually no pollutants. Even when you consider the emissions created at the generating plants to power the electric motors, reduction in air pollution is substantial. ELECTRIC MOTORS ARE EASIER TO MAINTAIN Electric motors require substantially maintenance than engines Motors are easier to keep running and more reli- able. Less maintenance translates to cost savings for you. ELECTRIC MOTORS ARE EASIER TO OPERATE REMOTELY Simply put, you cannot remotely oper- ate engines, while electric motors can be easily operated remotely. This means savings for you resulting from less per- sonnel dedicated to work in the field. ELECTRIC MOTORS ARE QUIETER In many areas noise pollution can.be as much of a problem as air pollution. If you operate in communities sensitive to noise pollution, electric motors are the right choice for you. 17J 2Wz "r r� LI CLEAN POWER PROGRAM • CUSTOMER AGREENIEIVT (Installation and Operation of Electric Motor) THIS AGREEMENT ( "Agreement ") is entered into as of 1997 ( "Effective Date "), between Southern California Edison Company ( "Edison "), located at 2244 Walnut Grove Avenue, Rosemead, California 91770, and: Edison Customer ( "Customer"): Customer Name: City of Newport Beach Address: 3300 Newport Beach City, State and Zip Code: Newport Beach, California 92658 Phone No.: 714644 -3011 Fax NO.: 714 - 646 -5204 Contact Name: Eldon Davidson Title: Manager Edison Acct No.: CSS: 0- 001 -4735 Tax ID NoJSS No.: 95- 6000751 _ Corp. _ Non -Corp. _Medical z Exempt (explain, if exempt): The purpose of this Agreement is to provide a financial incentive to the Customer for participation in Edisons Clean Power Program ( "Program "). This Agreement applies to the following Customer site: Project ( "Project Site "): Project Tale: New Motors Project Address: 16° Street, Dolphin Ave., Tumura School City. State and 4 Code: Newport Beach, California 92658 TERMS AND CONDITIONS OF THIS AGREEMENT: (a) Eligibility. The Project Site must be located in Edisons service territory, and Customer must be or become an Edison Customer who takes service through Edisons distribution lines and under the Edison rate schedules referenced in Exhft "A" attached hereto and incorporated herein by reference. Except for the incentive to be paid pursuant to this Agreement, Customer shall not be eligible for any other incentives from Edison, including, but not limited to. Environmental Pricing Credits or Demand-Side Management incentives, which might otherwise apply to the installation and operation of the Equipment (as defined in Section 1(b)). Customer hereby aclmowledges receipt of Edison's Program Customer Brochure ( "Program Brochure"), and understands that Program incentive levels, as described in the Program Brochure, are based on Howatt ("kW") motor size and projected annual number of operating hours. (b) Pur4hase or Lease of Motor. Customer shall purchase or lease and install the following energy efficient electric motor(s) ( "Equipment) at the Project Site iastead of a viable non- . electric option: 0 0 Number of motors: Five For each motor, provide the following information: Size in hp: 1,650 Size in nameplate kW: 1,230.9 Energy Efficiency Rating: .956 Projected annual # of hours of operation: 5,800; 7,300; 5,843; 5,110;5,843 Projected annual kWh consumption: 7,701,758 The Equipment must comply with applicable minimum State and federal energy efficiency standards. The choice of Equipment, selection of contractors, purchase of materials, work performed and the payment therefor are the sole responsibility of the Customer. Customer shall ensure that the Equipment is installed and operated in accordance with applicable safety standards and existing governmental regulations. (c) Use of Motor, Reimbursement Customer hereby commits to operate the Equipment at the Project Site for a period of not less than two (2) years from the date of Edison's on- site verification of the installation and operation of the Equipment ( "Operations Period "). The Equipment must use annually a minimum of seventy-five percent (75%) of the annual kilowatt-hour ("kWh ") consumption projected above ( "Consumption Threshold") during the Operations Period If Customer does not operate the Equipment and meet or exceed the Consumption Threshold during each twelve (12) month period of the Operations Period as described above, Edison shall be entitled to reimbursement from Customer for that portion of the Verified Incentive (as defined in Section 2(b)) paid to Customer ('Reimbursement "). If the Verified Incentive is less than One Hundred Fifty Thousand Dollars ($150,000), the amount of the Reimbursement shall be calculated as follows: (Verified Incentive a- 24 months) x # of months in which Consumption Threshold was not met = Reimbursement Fr 118V I&%3.S FINAL (NO.d) 2 Qm Pe Nopvu CS Apenoeat • 0 FOR EXAMPLE: If Verified Incentive paid was $48,000 + 24 months _ $2,000/month Projected annual # of hours of operation = 2,400 2,400 + 12 months = 200 hrsJmonth = Monthly Consumption Threshold 13 months of non - compliance with Monthly Consumption Threshold 13 x $2,000 = $26,000 Reimbursement to Edison If Verified Incentive is One Hundred Fifty Thousand Dollars ($150,000) or mote, the Reimbursement shall be calculated as follows: (First installment of Verified Incentive -t- by 12 months) x # of months in which Consumption Threshold was not met = Reimbursement. FOR EXAMPLE: If first installment of Verified Incentive was $84,000 + 12 months = $7,000/month Projected annual # of hours of operation = 6,000 6,000 + 12 months = 500 hrsJmonth = Monthly Consumption Threshold 5 months of non - compliance with Monthly Consumption Threshold 5 x $7,000 = $35,000 Reimbursement to Edison If the Consumption Threshold is not met after twelve (12) months of operation of the Equipment, then the second installment shall not be paid, in accordance with Section 2(c) below. If the Consumption Threshold is met after such twelve (12) month period, then the second installment shall be paid, but shall be subject to reimbursement as provided above. (d) Implementation Dead he. Customer shall install and begin to operate the Equipment on or before October 1, 1997 ("Implementation Deadline") (which date shall not extend beyond 1997). Customer shall notify Edison immediately upon the completion of Equipment installation. If the Equipment is not installed and operated by the Implementation Deadline, Edison shall not be obligated to pay any incentive to Customer under the Program. (e) Verifrcadon Prior to being entitled to receive an incentive, and thereafter during the Operations Period, Customer must allow Edison representatives reasonable access, during normal business hours, to the Project Site to verify the installation and operation of the Equipment ("Site Verification "). If access to the Project Site is delayed due to the Customer or for other reasons beyond EdisoWs control, the time within which Edison is required to verify the Equipment (sir forth is Section 2(b)) shall be extended by the number of business days that access is delayed. (f) Supporting Documentation. must provide a copy of an invoice, purchase order, proof of purchase or lease of the Equipment on Equipment manufacturer name, model no., vendor /d stributor/nstalleilkwor, customer name, length of time the lease. WINIf%3.S FiNALpY A) 3 On or before Edison's Site Verification, Customer lease, or other suitable documentation, showing or after February 3, 1997, and providing the sepal no., name and address of the Equipment the date of sale or lease of the Equipment, and aa.n,,QPlow a�Arw=zt 0 2. Edison's Oblirrati 0 (a) Projected Incentive. Based on the information provided to Edison by i Customer in Section 1(b), the projected incentive amount ( "Projected Incentive ") to be paid by Edison to Customer is $158,480 which was calculated in accordance with the incentive levels set forth in the Program Brochure. Edisons obligation to pay the incentive is contingent upon installation and operation of the Equipment at the Project Site by the Implementation Deadline. Edison shall deliver an executed copy of this Agreement to the Customer after acceptance and execution by Edison. Edison will only execute this Agreement if there are sufficient funds available under the Program to pay the Projected Incentive. (b) Verification and Verified Incentive. Edison shall verify the installation and operation of the Equipment at the Project Site within ten (10) business days of Edisons receipt of Customers notificat ion that the Equipment has been installed. The amount of the incentive may vary from the Projected Incentive, due to a change in the actual equipment installed and/or hours of projected annual operation ( "Verified Incentive "). Edison reserves the right, exercisable in its sole discretion, to adjust the amount of the incentive upward or downward (as the case may be) to reflect the forecasted increase or decrease in energy consumption at the Project Site as a result of such changes. Customer accepts as final authority Edisods determination of the Verified Incentive. (c) Payment of Verified Incentive. Within thirty (30) business days after the Site Verification, Edison shall issue a check made payable to Customer in the amount of the Verified Incentive. Verified Incentives of One Hundred Fifty Thousand Dollars ($150,000) or more shall be paid in two (2) equal irwalhnents. The fast installment shall be paid as provided above after Site Verification of the Equipment. The second installment shall only be paid if after twelve (12) months of operation of the Equipment, the Consumption Threshold has been achieved If such Consumption Threshold is not achieved, Edison shall not be obligated to pay the second installment to Customer. Within ten (10) business days after Edisons verification that the Consumption Threshold was achieved, Edison shall issue a check made payable to Customer for the second installment. Customer accepts as final authority Edison s determination of whether the Consumption Threshold has been achieved based on meter readings or other use- related justifications acceptable to Edison 3. Term and Termination. This Agreement is effective as of the Effective Date, and shall terminate at the end of the Operations Period. 4. No. Warranty EDISON MAKES NO WARRANTY, WHETHER STATUTORY, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES CONCERNING THE INSTALLATION AND OPERATION OF THE EQUIPMENT, THE BENEFITS TO BE DERIVED FROM SUCH INSTALLATION AND OPERATION, PRODUCT ENDORSEMENT, TECHNICAL FEASIBILITY, OPERATIONAL CAPABILITY AND /OR RELIABILITY OF THE EQUIPMENT, OR ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR USE OR APPLICATION. No agent, employee, or representative of Edison has authority to bind Edison to any affirmation, representation or warranty, unless expressly made and agreed to in writing by Edison. 5. Indemnification Customer shall, at its own cost, defend, indemnify and hold harmless Edison, its officers, employees, agents, assigns, and successors in interest, from and against any and an rl1 I9U 1W.3 FKALL(N694y r wPora Pmo m c�Avwu� 4 i- • 0 liability, damages, losses, claims, demands, actions, causes of action, costs, including, but not limited to death or injury to any person or damage to any property, and inchtding attorney's fees and expenses, or any of them, arising out of the installation and/or operation of the Equipment, or the performance or non-performance of Customer's obligations under this Agreement 6. Limitation of Liability. Edison shall not be liable for any damages, claims, losses, costs or expenses (including attorneys fees and costs) and including, without limitation, any special, incidental, indirect or consequential damages incurred by Customer as a insult of this Agreement and/or the installation and operation of the Equipment 7. Payment of Taxes. Incentives paid to Customer may be subject to taxation by both the federal government and the State of California. Customer shall be solely responsible for the payment of any and all applicable local, state, and federal taxes in connection with incentives paid to Customer pursuant to this Agreement If required under applicable law, Edison will report incentive payments trade to Customer to the federal government and the State of California. 8. Survival of Provisions. Sections 4, 5, 6 and 7 hereof shall survive and continue after any termination of this Agreement 9. Tariffs and Rules: Metering. This Agreement does not affect the applicability of Edison's California Public Utilities Commission - approved tariff schedules and rules to the terms and conditions of electric service provided to the Customer. If meters need to be installed in order for Edison to provide electric service to Customer as a result of this Agreement, the cost of the meters and their installation shall be paid by Customer to Edison in accordance with the provisions of Rule 2.H., Added Facilities, for which a separate contract is requited. 10. Miscellaneous. No party hereto may assign this Agreement or any obligation or right hereunder without the prior written consent of the other party. All provisions of this Agreement shall be binding upon, inure to the benefit of; and be enforceable by and against the respective successors and assigns of the patties hereto. This Agreement shall be governed by, interpreted under and enforced in accordance with the laws of the State of California. Any action brought to enforce or interpret this Agreement shall be filed in Los Angeles County, California In the event that any one or more provisions contained in this Agreement should for any reason be held unenforceable in any respect, such unenforceabtb'ty shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such unenforceable provision(s) had not been contained herein. The waiver by a party of the performance of any covenant, condition, obligation, representation, warranty or promise in this Agreement shall not invalidate this Agreement or be deemed a waiver by such party of any other covenant, condition, obligation, representation, warranty or promise. The waiver by any party of the time for performing any act or condition hereunder does not constitute a waiver of the act or condition itself This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which, together shall constitute one and the same instrument. This Agreement contains the entire agreement between the parties as to the subject matter hereof; and all agreements and understandings between the parties are embodied and expressed herm Any amendments to this Agreement shall be in writing and shall be signed by all parties hereto. In the event of any legal action or other proceeding between the parties arising out of this Agreement or the transactions contemplated herein, the prevailing pay in such legal action or proceeding shall be entitled to have and recover from the other party all costs and expenses incurred therein, including reasonable attorney's fees. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first written above. nr reu rows FWAL Mora) 5 CIMA P� NOVIM 0�� Aqaem� 0 0 APPROVED AS TO FORM: CITY OF NEWPORT BEACH A Municipal Corporation i By: By: Robin Clauson Kevin J. Murphy, City Manager Assistant City Attorney City of Newport Beach City of Newport Beach ATTEST: SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation By: By: LaVonne Harkless Pam A. Bass, Vice President City Clerk Customer Solutions L •I M • 0 0 EXMIT "A" RATE SCHEDULES FOR CLEAN POWER PROGRAM 0 0 MINIMS FWAL (N69.9) GS -1 GS -2 I -6 TOU- GS -2 -A TOU- GS -2 -B TOU -8 PA -1 TOU -PA -B TOU -PA -3 TOU -PA-4 TOU -PA -5 TOU- PA -6 -A TOU- PA -6 -B TOU -PA -7 7 OmommApeemed