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United States: Electric City and PacifiCorp Sign Long-Term Contract to Develop Largest Actively Managed Power Curtailment System in Western U.S.

Electric City has executed a contract with PacifiCorp to develop a 27-MW power curtailment system for the utility using Electric City's EnergySaver and GlobalCommander technology. The initial system will be deployed in the Utah Power service territory targeting the Salt Lake City region. Plans exist to expand the system to 50 MW in other PacifiCorp jurisdictions including Oregon and Washington at the option of PacifiCorp; the final system will cost approximately US$25 million.

The system, called Virtual “Negawatt” Power Plan (VNPP), will allow PacifiCorp to remotely control commercial, industrial and government lighting systems over a managed and secure IP network. Through the use of the EnergySaver/GlobalCommander system, the utility will be able to reduce electric capacity requirements during periods of peak demand, providing instantaneous control, measurement and verification of load reduction. The 27 MW system will provide significant peak load relief in PacifiCorp's Utah Power service territory under the terms of a 10-year agreement, particularly along an 80-mile stretch of the Wasatch Front, which covers from Provo north through Salt Lake City, to Ogden.

PacifiCorp, a subsidiary of Scottish Power, has incorporated Electric City's VNPP system into its integrated resource plan and thus has evaluated it against many other competitive options for procuring low-cost energy.

“Electric City's VNPP is an offering that we thoroughly evaluated on par with traditional supply resources,” stated Jeff Bumgarner, PacifiCorp director, Demand Side Management. “In our focused attention to close the gap between power supply and customer demand for power, VNPP is proving to be a valuable addition to our resource portfolio. The solution enables our customers to participate in load reduction events with little to no visible impact on their operations. PacifiCorp will be able to actively manage the reduction system, while receiving accurate and real-time measurement and verification of load curtailment.”

Electric City will act as the provider of technology and the developer of the demand-response system. The cost of the system will be borne by third-party lenders, supported through a long-term power sales agreement with PacifiCorp. Electric City will guarantee the delivery of peak power reduction through its EnergySaver/GlobalCommander system and will dispatch the system at the direction of PacifiCorp. In exchange for hosting the system and allowing remote control over peak demand, customers will receive the technology at no cost and will receive free steady state energy savings. Subject to final approval by the Public Service Commission of Utah and the completion of companion agreements and financing arrangements, the program is expected to take approximately 18 to 24 months from its initial startup to full deployment of the system. The PacifiCorp initiative will immediately involve national Electric City customers who have already signed up for our programs in Chicago, Denver and Ontario.
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