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HomeMy WebLinkAboutStreetlight Service Agreement - LED Street Light Upgrades & Assoc. Rates, IURC Cause No 45285 – I & M Power Co.  ELIZABETH A. MARADIK JOSEPH R. MOLNAR GARY A. GILOT JORDAN V. GATHERS MURRAY L. MILLER 1316 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/ 235-9251 FAX 574/ 235-9171 CITY OF SOUTH BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC WORKS February 22, 2022 Mr. William J. Tokash Indiana Michigan Power Company wjtokash@aep.com RE: Streetlight Service Agreement Dear Mr. Tokash: At its February 22, 2022 meeting, the Board of Public Works approved the above referenced agreement for the contract approved in 2020, for the LED streetlight upgrades and associated rates, for the Indiana Utility Regulatory Commission Cause No. 45285. Enclosed please find the original of the agreement for your signature. Please sign and return the original agreement to lhensley@southbendin.gov. Please retain a copy for your records. If you have any further questions, please call this office at (574) 235-9251. Sincerely, /s/ Laura Hensley/Acting Clerk Enclosures Streetlight Service Agreement This Contract, entered into this 22nd. day of February, 2022 by and between Indiana Michigan Power Company, hereafter called the Company, and City of South Bend, Indiana, by and through its Board of Public Works, County-City Building, 227 W. Jefferson Blvd., 13th Floor, South Bend, Indiana 46601, hereinafter called the City, and collectively called The Parties, Witnesseth: For and in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto agree with each other as follows: 1. Settlement Agreement: This Contract is contingent upon approval by the Indiana Utility Regulatory Commission (“IURC”) of a Settlement Agreement between Company and City in IURC Cause Number 45285 wherein The Parties agreed to six essential core terms of this five-year streetlight service contract. Those Settlement Agreement terms consist of the following: Rate Certainty. I&M and City agree that under this customer specific streetlight Contract applying the Public Efficient Streetlight (PES) DSM Program rates for PES LED lights, PES rates shall not increase for five years from the date of the last retrofit. I&M and the City agree to meet no later than six months prior to the end of the five year term to negotiate the contract’s extension. If this Contract is not extended the City may then choose to take service under the then applicable PES rates or standard LED rates. This customer specific Contract will provide that the rates for PES LED lights will remain subject to the Commission -approved tracker surcharges and tracker rate adjustments applicable to standard service customers. PES DSM Rebate Credit. In future rate cases, I&M will not propose to credit or allocate the respective PES DSM Program per fixture rebate to any other LED or old technology streetlight rates or class. I&M will propose that the PES DSM LED retrofit capital cost rebate for LEDs funded by the DSM program shall remain a reduction in the underlying costs used to set rates for PES installed LED streetlights only and I&M will fully defend that position unless the City requests or agrees otherwise. Customer LED Choice. The City shall be allowed to choose the wattage and lumen output of each replacement LED fixture from the portfolio of LED options listed by I&M in this Cause. Doing so allows the City to install the size of LED lumen output fixture that the City views as best meeti ng the City’s nighttime safety and public use needs of each neighborhood or area. Fixture selections made by the City that deviate from I&M’s recommended one-for-one replacement size could be subject to a higher or lower monthly tariff rate, depending upon the agreed-upon PES rate of the fixture selected. I&M and the City agree to collaborate to determine PES Program overall cost effectiveness, including an assessment of LED streetlight O&M and energy savings and the impact of City fixture size selections. I&M will continue to separately record actual streetlight O&M expense to FERC Accounts 585 and 596. I&M will provide a reasonably accurate calculation and estimate of the annual O&M expense and O&M savings resulting from the replacement of HPS fixtures with LED fixtures at the time of its next base rate case and reasonably prior to the meeting agreed to above in Paragraph 1. Photo Cell Rate Reduction. I&M will allow the City to elect to have I&M install longer life approximate 15 year or longer photocells and thereby decrease the frequency and cost of photo cell replacements resulting in a per light monthly rate savings of $0.685. Doing so reduces I&M’s maintenance frequency and costs and in turn reduces the cost to be incurred by the City in participating in the PES Program. I&M DSM Plan. Approval of this Stipulation resolves all of South Bend’s concerns regarding I&M’s pending DSM Plan. South Bend agrees to support Commission approval of this Stipulation in lieu of its opposition to the DSM Plan, including the PES Program. Uplift “No Pole” Rate. For the installation of LED lamps at new locations on existing wood poles (i.e., new LED installations on existing wood poles not covered by the PES program), the Rate per Lamp per Month as set forth in Tariff E.C.L.S. shall be reduced by the pole cost in a 30-day filing to be promptly made with the Commission to establish new rates, as shown in the attached Exhibit 1 for new LED lamps on existing poles. 2.Retrofit Process: The Company agrees to provide and reasonably maintain a street lighting system for the City, consisting of the number and type of lamps as heretofore and hereinafter provided, together with electric energy sufficient to operate said lamps continuously from one-half hour after sunset until one-half hour before sunrise, every night and all night, approximately 4,000 hours per annum during the term of years he reinafter set forth. This includes the provision and maintenance of a system of distribution to the fixtures, including underground distribution where pre- existing or where installed at the customer’s request and cost. Said lamps shall be so maintained and operated that they will give the maximum amount of illumination obtainable under commercial conditions. Except as expressly modified herein, the City agrees to accept the service herein specified during the term hereof and to pay therefore at the rates on file with the Indiana Utility Regulatory Commission (Commission) set forth in Tariff SLS and Tariff ECLS. The Public Efficient Streetlighting Program (PES) is an Energy Efficiency program offered by the Company to offer upgrades to more efficient LED streetlight fixtures to only current streetlight fixtures contracted for by the Customer under Tariffs SLS and ECLS. The PES program is proposed for approval by the Indiana Utility Regulatory Commission as part of the Company’s 2021 and 2022 Demand Side Management Plan portfolio of programs. The Customer agrees to participate in the PES program according to the following program requirements: a.Existing streetlight fixtures will be upgraded to more efficient LED streetlight fixtures on a one-for-one basis; b.Any Customer request for additional LED fixtures (i.e. non-one-for-one replacement), additional poles, and/or additional wire spans are subject to the terms for such under Tariff ECLS and are not subject to PES program consideration under Tariff ECLS; c.The Company will perform a field audit of existing streetlight fixtures to identify and confirm physical location (pole number, GPS coordinates, etc.), quantity, size, and type of fixture prior to effectuation of Company provided upgrade services under the PES program; Results of the field audit will be provided to the City electronically in the format available from the Company. Results of the audit will be compared to the City’s own data and discrepancies resolved prior to creating the PES plan; d.The Company’s standard streetlight fixtures provide a color temperature of 4000K. At the City’s request, the Company will utilize the following LED streetlight fixtures to replace those existing streetlight fixtures agreed upon by the City to be upgraded under the PES program. Replacement fixtures for specialty or decorative light types will be recommended by the Company and approved by the City. The City may at its option, and at its expense, request a sample installation of each available fixture, followed by a trial and review period. Company LED Streetlight Fixture Description ROADWAY, LED, 120-277V, 4,850 Lumens, 36W, Type 2 Narrow Asymmetric Refractor, Gray Finish, 3000K, ROADWAY, LED, 120-277V, 8,600 Lumens, 68W, Type 3 Asymmetric (Medium) Refractor, Gray Finish, 3000K ROADWAY, LED, 120-277V, 14,400 Lumens, 121W, Type 3 Asymmetric (Medium) Refractor, Gray Finish, 3000K ROADWAY, LED, 120-277V, 24,000 Lumens, 191W, Type 2 Asymmetric (Medium) Refractor, Gray Finish, 3000K e.The Company will identify and provide to the Customer prior to effectuation of PES program upgrade services an individual identification of the size and type of each LED fixture that the Company recommends to replace each existing streetlight fixture agreed upon by the Customer to be upgraded through PES program participation and consistent with the results of the field audit. f.The Customer may accept the Company’s recommended LED fixture or choose a different LED fixture from the Company’s portfolio of available LED fixtures. Selection of a different LED fixture will result in a corresponding change in the applicable PES tariff rate. g.The Company will provide to the Customer a PES program LED streetlight upgrade plan (PES Plan) and schedule prior to the Company effectuating PES program services, and if the Plan is acceptable to the City, the City agrees to such schedule and to make reasonable accommodation for the effectuation of the PES Plan; h.The Company and City agree to identify reasonably anticipated schedule and/or plan barriers, constraints, and opportunities in advance of plan and schedule finalization and the Company agrees to accommodate specific Customer requirements for plan execution, reasonably identified and actionable. i.The City agrees to provide waiver to the Company for any roadway permitting, including the cost thereof, typically required by the City for effectuation of agreed upon PES program upgrade field work. j.The City will not be required to make any up-front contribution towards the LED fixture cost for replacements made pursuant to the PES Plan that use standard (including 3000K) streetlight fixtures. k.Upon successful and full completion of the PES Plan, the Company will provide to the City final results for the work completed, including identification of the number and type of LED streetlight fixtures actually deployed under the PES Plan as well as electronically in the format available from the Company identifying updated fixtures. The City agrees to accept streetlight service from the Company for the LED streetlight fixtures actually deployed and agrees that the associated Customer Tariff SLS 533 code and Tariff ECLS 530 code accounts will be reasonably updated to reflect the results of actual LED streetlights deployed from such plan under Tariff SLS 534 code and Tariff ECLS 532 code. l.After upgrade to LED, the City agrees to pay for each upgraded LED fixture at the PES Monthly Rate per Lamp per Month as specified in the PES Section of Tariffs SLS and ECLS as approved by the Commission and in effect on the effective date of this agreement. Such PES Monthly Rate shall be fixed and shall not change for a period of sixty (60) months from the first day of the first month following the successful and full completion of the upgrades under the PES Plan. The City shall be subject to all riders applicable to Tariffs SLS and ECLS and any changes to such riders as approved by the Commission. m.The City may elect to have the Company install longer life (approximate 15 year or longer) photocells. The City’s election will be specified within the PES Plan. For each upgraded LED fixture that includes the installation of a longer life photocell, the City will receive a $0.685 per Lamp per Month reduction to the PES Monthly Rate. n.In the event that any existing fixture type already accepted by the Customer for service under Tariff SLS 533 code and Tariff ECLS 530 code but not agreed to be upgraded to LED under the PES program are discontinued, the Company reserves the right to replace any failed units with a currently availabl e non-LED fixture and lamp of comparable lumen output. 3.Additional Lamps: Company agrees to install additional LED lamps that are not identified and considered as part of the PES program upon receipt of a written notice from a duly authorized representative of the City; Fixtures will be selected from the above list, or of respective sizes and types and which have been approved by the Company and the City. Unless otherwise mutually agreed, payment for the installation of such additional lamps shall be at the rate specified in the respective filed tariff, which includes new lamps added to existing poles covered in the uplift “no-pole” portion of the tariff. Temporary lamps, if ordered, shall be furnished under a special agreement. 4.Payment Terms: Bills are due upon receipt and payable within seventeen (17) days of the mailing date. 5.Ownership and Termination: All material furnished by the Company shall remain the property of the Company, and shall be reasonably maintained by the Company. All material furnished by the Company may be removed at the termination of this Agreement, if the City provides in writing a determination that certain fixtures are no longer needed for public safety and/or that the City no longer wishes to participate in an existing or new company- owned streetlighting tariff program. 6.Maintenance and Downtime: The Company shall keep every lamp herein specified in operation during the time provided. Adjustments to the bill for outages which are reported to the Company shall be made for all days during which the lamp failed to properly work, provided that the Company shall be given two regular work days (Monday through Friday) from the time of notification by the City or its representative to repair any fixture covered in this agreement and that no adjustment shall be made if the repair is completed within that two day period. Verbal notification from the City shall be sufficient to initiate repair measures. Formal notification for the purpose of bill adjustment shall be provided in writing via email from the City. The bill adjustment made by the Company shall be on a daily pro rata basis to reflect the actual number of days that the unit was inoperative. 7.Temporary Right of Use: The City, as a further consideration for the promises and agreements made by the Company, herein set forth, hereby grants to the Company the temporary use of streets, alleys and public places for the sole purpose of placing and maintaining its poles, light fixtures, and other related equipment needed to perform the LED retrofit work specified in this contract, after the Company has confirmed with the City the appropriateness of equipment location and placement. The Company shall not store hazardous materials on City property at any time. 8.Default: If the City defaults in the payment of any bills as herein provided, the Company shall follow the IURC requirements for utility notices, grace periods and potential disconnections. 9.Municipal Budget: The City agrees that during the life of this Agreement it will provide in its annual budgets and estimates and levy of taxes sufficient funds to pay the Company any amounts due for services rendered under said Agreement. Expenditures are subject to the legal appropriation of funds from the South Bend Common Council. Miscellaneous: 10.All terms and conditions of this Agreement shall be binding upon and insure to the benefit of the parties hereto, their respective successors and/or assigns. 11.This Agreement cancels and supersedes all previous Agreements relating to the supply of the service described herein. 12.This Agreement shall be effective upon execution and approval by the Indiana Utility Regulatory Commission and shall extend for a period of 60 months (five years) from the first day of the first month following the completion of the upgrades under the PES Plan. 13.All provisions of this Agreement shall be considered as separate terms and conditions, and in the event any one shall be held illegal, invalid or unenforceable, all the other provisions hereof shall remain in full force and effect as if the illegal, invalid, or unenforceable provision were not a part hereof, unless the provision held illegal, invalid or unenforceable is a material provision of this Agreement, in which case the Company and the City agree to amend this Agreement with replacement provisions containing mutually acceptable terms and conditions. 14.The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Indiana. 15.This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by their duly authorized officers the day and year first above written. Indiana Michigan Power Company By:_______________________________________ ________________ Title: Manager, Customer Services Date: ___________________ Account Number: 0400248570 Tariff ECLS 0431248570 Tariff ECLS 0431248570 Tariff SLS 0447148570 Tariff ECLS 0478148570 Tariff SLS February 22, 2022 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date: February 15, 2022 Name: Finnian Cavanaugh Department of Public Works – Engineering Division BPW Date: February 22, 2022 Phone Extension: 5961 or fcavanau@southbendin.gov Required Prior to Submittal to Board BPW Attorney X Attorney Name Clara McDaniels Dept. Attorney Attorney Name Purchasing Check the Appropriate Item Type – Required for All Submissions Professional Services Agreement Contract Proposal Open Market Contract Amendment/Addendum Special Purchase, QPA Bid Opening Bid Award Req. to Advertise Title Sheet Quote Opening Quote Award Reject Bids/Quotes Proposal Opening C/O & PCA No. PCA Chg. Order, No. Traffic Control Resolution Other: Ease./Encroach Required Information Company or Vendor Name Indiana Michigan Power New Vendor Yes If Yes, Approved by Purchasing No MBE/WBE Contractor MBE WBE Completed E-Verify Form Attached Yes No Project Name Streetlight Service Agreement Project Number Funding Source N/A Account No. Amount Terms of Contract Purpose/Description Contract with I&M for Street Light Service upgrades including terms for LED street light upgrades and associated rates. IURC Cause No. 45285. For Change Orders Only Amount of Increase Decrease $ ($ ) Previous Amount $ Current Percent of Change: Increase Decrease % ( %) New Amount $ Total Percent of Change: Increase Decrease % ( %) Time Extension Amount: New Completion Date: