Label
DPU051623TOLEDOPUBLICPOWER
DPU/Law
L. Kovacik (x1020)
Revised
Title
Authorizing the Mayor to enter into agreements to purchase wholesale electricity in real time and in various megawatt or megawatt-hour blocks; authorizing the Mayor to enter into agreements to sell, balance, deliver and manage electricity for customers of Toledo Public Power; authorizing the Mayor to purchase equipment, infrastructure and real estate interests to facilitate the operation of Toledo Public Power; authorizing only Toledo Public Power to aggregate and bid demand response of retail customers in accordance with FERC Order 719; authorizing the Mayor to execute the necessary agreements and contract amendments on behalf of Toledo Public Power to facilitate demand response and other electricity opportunities including but not limited to renewable energy plans; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
Toledo Public Power has been in existence since 2007 and serving retail electricity to its sole customer, OmniSource LLC, since 2009. The current power contract between the parties was executed in 2019 and runs for ten years. One of the original authorizing ordinances, 319-09, provided an adequate framework for the first decade of operating Toledo Public Power but OmniSource has expressed an interest in acquiring additional, varied electricity products. In particular, OmniSource would like to explore demand response and other programs to assist in stabilizing or reducing its monthly power costs. Despite over a decade of predictable monthly invoices, record high prices in 2022 and the current volatility in the electricity markets has caused unpredictable spikes in power costs.
The regional transmission organization that services Toledo Public Power has various programs that make payments to customers if they modify their operating status on short notice. These programs, called demand response, reduce the operating costs and increase the efficiency of the electric...
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