MEDIA ADVISORY
SRP PowerPartner Program a 'win-win'
Demand-response test event a success for SRP, Valley companies
A cold-storage logistics company has given a warm reception to the new SRP PowerPartner program to manage peak energy demand for participating Valley businesses.
Mesa Cold Storage Ltd. was among the first companies to sign up for the program, which was implemented late last year by SRP and an energy management firm, EnerNOC Inc. SRP PowerPartner is a demand-response program for commercial and industrial customers that agree to reduce their power consumption when customer demand for power is unusually high. The program had an initial test run in early June.
"The first event went very smooth for us," said Sherry L. Perry, chief financial officer for Mesa Cold Storage. "We provide storage, transportation and distribution service for perishable and temperature-controlled products - mainly food. Logistics are extremely important for us, and the program delivered as promised on the first go-round."
The SRP PowerPartner process is not only new, it is also straightforward, said Debbie Kimberly, SRP's manager of Energy Efficiency and Policy Analysis.
"Our team, made up of SRP key account managers and EnerNOC representatives, meets with individual business customers to formulate an energy-reduction plan that will occur when SRP calls a demand-response event," said Kimberly. "The plan, which is customized to meet individual business needs, may entail turning off some lights, changing thermostat set points by a few degrees, or delaying certain energy-intensive processes for short periods."
When SRP notifies EnerNOC to call an event, Kimberly said EnerNOC will transmit an automatic notification to participating organizations. The participating SRP customers are then asked to reduce their energy usage according to their pre-determined plan, for one to four hours.
EnerNOC employs its own Network Operations Center to remotely manage and reduce electricity consumption across a network of commercial, institutional and industrial customer sites. The operations center helps EnerNOC make energy available to electric utilities on demand.
Kimberly said SRP customers receive quarterly payments for being on standby, ready to reduce energy usage during peak demand and also receive payments based on how well they perform during specific events. Payments depend on how much energy a participating SRP customer can commit to reduce.
"The test process last month was totally user-friendly," said Mesa Cold Storage's Perry. "We received warning by phone and by e-mail before the actual event. EnerNOC was available during the event for any questions, and let us know promptly when the event was over. Communications from the get-go was excellent."
During the SRP PowerPartner program's first event during the afternoon of June 4, Kimberly said 18 SRP customers across 34 sites reduced 105 percent of the expected load reduction - 92 percent of which was achieved in the first 10 minutes of the event. Because the first event was an SRP system test, customers were given a day's notice.
"The program is definitely a win-win," Perry said. "We help SRP with peak demand, realize energy savings, plus get compensated for it. Aside from the obvious benefits, we also get the satisfaction of knowing that we are doing our part in energy management and conservation for the greater community."
Kimberly said demand-response programs not only help electric utilities such as SRP lower system peaks, but they also mitigate the need to build new generating units and to buy more expensive peaking power from the electric grid. These actions help SRP control power generation costs in an effort to reduce electric customer price impacts. Additionally, she said, demand response supports the state's green initiatives by acting as a clean energy resource that can lower overall demand.
Perry said Mesa Cold Storage learned about the program through its SRP account manager, Sharon Kausal.
"She gave us the background and directed us to EnerNOC," said Perry. "The EnerNOC representative visited our Tolleson campus and gave a great presentation, answering all our questions. Implementation was easy; the EnerNOC staff installed the meters and related equipment for free. It was a very turn-key, low-maintenance process for us.
"This was too good an opportunity to pass up, especially in this economy," said Perry. "And it's required a minimum of effort on our part."
So far, Kimberly said 23 customers have contracted for SRP PowerPartner -- representing the potential of almost 29.5 megawatts in load reduction. Customers include manufacturing, distribution centers, hotels, schools, retail/malls and municipal water-treatment plants. Capacity available per customer generally ranges from 100 kilowatts to 4.5 megawatts.
Mesa Cold Storage has 6 million cubic feet of freezer/cooler and dry warehousing space at three facilities, and serves the southwestern United States, including Arizona, New Mexico, Nevada, California, Utah, Texas, as well as Mexico. Services include temperature-controlled distribution, transportation, cross docking, lumping/reworks, freeze down and logistics consulting, plus custom-tailored programs. The company provides cold storage for all perishables and other temperature-controlled products as well as dry storage.
Kimberly said SRP enlisted Boston-based EnerNOC because of the firm's experience in helping utilities and businesses across North America engage in similar programs. EnerNOC is a leading developer and provider of energy solutions to commercial, institutional and industrial customers, and electric power grid operators and utilities. The company uses its Network Operations Center to remotely manage and reduce electricity consumption across a growing network of commercial, institutional and industrial customer sites, making demand-response capacity available to grid operators and utilities on demand while driving energy, environmental and financial results for end-use customers.
SRP is the largest provider of electricity to the greater Phoenix metropolitan area, serving about 935,000 customers in Maricopa and Pinal counties.
