RFP_1100_DCM3051_0500_v1.pdf

Scope of Work Commercial Demand Response

Program Expansion – Consulting & Program Management Services

Solicitation No.

RFP 1100 DCM3051

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1.0 PURPOSE

The purpose of this contract is to provide the necessary resources (time and materials) supporting Austin Energy’s Demand Response programs. This contract places an emphasis on the expansion of the Commercial Demand Response program, to reach goals outlined in the Austin Energy Resource, Generation, and Climate Protection Plan to 2035.

The program expansion will include:

Supporting the City of Austin Electric Utility, dba Austin Energy’s existing Commercial Demand Response and Emergency Response Service programs.

Supporting the expansion of Austin Energy’s Automated Demand Response program utilizing Open Automated Demand Response (OpenADR) protocols and a Demand Response Management System to allow customers to participate automatically through communications with their automated load control systems.

Providing planning, administrative, and technical services.

Increasing customer base and customer participation in the Commercial Demand

Response program.

Adding significant demand response megawatts to the Commercial Demand Response program.

2.0 TERM OF CONTRACT

This Contract shall remain in effect for an initial term of 12-months, or the City terminates the Contract. This Contract may be extended beyond the initial term for up to four (4) additional 12-month periods at the City’s sole option.

3.0 INTRODUCTION

Austin Energy is a municipally owned utility that has powered Central Texas since 1985. As the third-largest public power utility in the United States by customer account, it serves approximately 575,000 customers across a 437-square-mile territory, spanning Austin and other portions of Travis, Williamson, and Hays counties. Nearly 50% of Austin Energy’s customer base lives outside Austin city limits, highlighting its significant regional impact.

Austin Energy is a vertically integrated utility operating within the Electric Reliability Council of Texas (ERCOT). Because it functions both as a traditional vertically integrated utility and as a Load Serving Entity in the ERCOT nodal market, it holds a unique position in the Texas electric sector— balancing market competitiveness with community-focused responsibilities. The utility owns and operates generation, transmission, and distribution assets within its service territory, while also participating in the ERCOT wholesale market to purchase power and sell electricity produced from its owned generation resources as well as contracted renewable sources.

In a rapidly changing energy landscape, it is essential for Austin Energy to plan for a future that is reliable, affordable, and environmentally sustainable for the entire community. The Austin Energy Resource, Generation, and Climate Protection Plan to 2035 places key priorities at the forefront, Program Expansion – Consulting & Program Management Services

Scope of Work – RFP 1100 DCM3051 Page 2 of 29 including expanding customer energy solutions and leading with energy efficiency and demand response. Austin Energy has long been an industry leader, offering energy conservation incentives since 1982 and earning national recognition for its energy efficiency, demand-side management (DSM), and renewable energy programs. The utility continues to pursue innovative customer-focused energy solutions.

This contract supports the City’s demand response goals outlined in the Austin Energy Resource, Generation, and Climate Protection Plan to 2035. The plan, approved by the Austin City Council, is subject to change as conditions and community needs evolve.

4.0 ABREVIATIONS

OpenADR Open Automated Demand Response DR Demand Response DSM Demand-Side Management ERCOT Electric Reliability Council of Texas kW Kilowatt 4CP 4 Coincident Peak ADR Automated Demand Response UL Underwriters Laboratories EV Electric Vehicle PTO Permission to Operate TPO Third-party-owned API Application Programming Interface MW Megawatt DR Demand Response

5.0 BACKGROUND

5.1 History of Austin Energy’s Commercial Demand Response Program

Austin Energy has had two iterations of Commercial Demand Response programs over the past decade; the first iteration was called Aggregator, and the current iteration is called Commercial Demand Response (previously Load Cooperative). In the now inactive Aggregator program, Austin Energy engaged a third-party aggregator, signed a curtailment contract and provided incentives to them. The aggregator then solicited and provided incentives to end-use customers for load-shed performance upon request during the summer season. In the current Commercial Demand Response program, Austin Energy engages the end-use customers directly, enrolling them into the program and providing a yearly incentive to the customer for load shed performance upon request. The direct contracting approach between Austin Energy and the customer is expected to continue in the future. There are currently no term limits on the customer agreements nor are there any financial penalties for non-performance; however, Austin Energy reserves the right to remove customers from the program due to lack of participation and reserves the right to update customer agreements in the future.

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Austin Energy’s Commercial Demand Response Program currently has over 70 customers enrolled with almost 900 participating accounts. During the summer of 2025, the program achieved a first-hour Event performance average of 14.5MW.

5.2 Austin Energy Commercial Demand Response Program

5.2.1 Program Parameters

In the current Commercial Demand Response program, the customer agrees to voluntarily curtail load during the months of June through September and, depending on the enrollment option, between the hours of 1:00 p.m. to 7:00 p.m.

upon notification from Austin Energy. Participants also have the option to participate in additional emergency curtailment events at any hour year-round for a higher incentive level. All customers are notified 10-minutes to 30-minutes in advance of the Event, depending on enrollment option. Notification typically occurs via email and/or text messages. Under the current Program Guidelines, load curtailment Events shall never exceed two (2) hours in length, and the current number of Events for the summer season is approximately 25-Events.

Participants are not subject to a committed load requirement.

Customers perform load curtailment through their preferred strategy, e.g., manually shutting down systems, adjusting parameters within their Building Management Systems/Building Automation Systems controls, or an automated process utilizing Automated Demand Response equipment integrated into the Management Systems/Building Automation Systems controls to enact pre-programed response strategies. The average Kilowatts (kW) saved during the Event are calculated based on baseline parameters defined by the participant’s facility and load type.

There are currently two (2) primary types of baselines applicable to different customer types. In general, baseline days always consist of non-weekend and non-curtailment periods.

a) Baseline Method 1: Calculated based on the three (3) highest energy usage days from the previous 10 eligible pre-Event days with an Event day adjustment.

b) Baseline Method 2: Calculated based on the energy usage for the one (1) hour period occurring two (2) hours prior to the Event.

The 15-minute interval electrical consumption data needed to perform the load curtailment calculations for settlement is obtained through Austin Energy’s internal metering system. Event performance is measured by calculating the average kW demand reduction during the Event window, and incentives are calculated by averaging the customer’s performance across the summer season.

Austin Energy paid over $1M in incentives to customers for participating in the Commercial Demand Response Program in 2025.

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For additional program information, reference Austin Energy’s Commercial Demand Response Program at the following link:

https://austinenergy.com/energy-efficiency/rebates-incentives/commercial/commercial-demand-response

5.2.2 Event Decision Making

The decision to call an Event is made by Austin Energy staff through the constant monitoring of Austin Energy net system load, ERCOT net system load, and weather predictions. Events are typically called for 4 Coincident Peak (4CP) Demand Response but can also be called for price responsive Demand Response, grid emergencies, grid resiliency/reliability, or any other grid and/or market condition.

4CP Events are called when a day is predicted to be a peak system load day for either Austin Energy or ERCOT. Reducing the peak load on an Austin Energy peaking day reduces the need to build new generation or purchase additional energy, while reducing load on ERCOT peak days reduces 4CP charges such as transmission allocations Austin Energy must pay to ERCOT. Austin Energy retains a third-party 4CP prediction service to assist in these decisions related to ERCOT peak load. Austin Energy’s Demand Response group and Austin Energy’s Energy Market Operations group currently co-manage participation in ERCOT’S Emergency Response Service program, where the Demand Response group manages the customer-facing components while the Energy Market Operations group manages the ERCOT-facing components.

5.2.3 Data Tool

Austin Energy has entered into an agreement with Schneider Electric and currently utilizes the Energy Profiler On-Line product, a data presentment tool developed by Schnider Electric, for all customers that participate in Commercial Demand Response. The product is also available for all other Commercial & Industrial customers that elect to subscribe to the electric data service. Energy Profiler On- Line allows for program administration and management.

Under the Energy Profiler On-Line product agreement, the following activities are performed:

a) Austin Energy creates user accounts for customers participating in the

Commercial Demand Response program via the Energy Profiler On-Line Entity Administration tool.

b) Austin Energy enters curtailment contracts into the system and manually launches Events via the Energy Profiler On-Line Curtailment Programs tool.

c) The Energy Profiler On-Line product server sends an email and/or text notification to customers requesting they curtail load during a specified date-time period and directs them to the Energy Profiler On-Line product website to acknowledge the notification.

d) The Energy Profiler On-Line product calculates the baseline load and curtailed load for each customer.

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e) The day following an Event, customers may view their calculated baseline and estimated or actual settlement on the Energy Profiler On-Line product website.

f) Incentive payments are calculated for each customer based on any load reduction from the baseline and the $/kW incentive. Incentives are currently processed through a separate platform.

5.3 ERCOT’s Emergency Response Service Program

ERCOT solicits qualified loads and generators to be available for deployment of load curtailment for use during an electric grid emergency. These customers enroll in the Emergency Response Service program, through a qualified scheduling entity to provide load reduction and on-site generation capabilities to reduce the possibility of rolling blackouts within the ERCOT electric grid. Austin Energy is a Qualified Scheduling Entity and has the ability to enroll customers into ERCOT’s Emergency Response Service program.

Emergency Response Service resources are designed to be deployed under Energy Emergency Alert Level 1, Alert Level 2, or Alert Level 3.

a) Energy Emergency Alert Level 1 and Alert Level 2 events are preliminary and intermediate stage events intended to limit the need for Alert Level 3 events.

b) ERCOT procures Emergency Response Service resources four (4) times each year. Each of the four (4) Standard Contract Terms is split into four (4) seasons:

1) Two (2) four (4) month seasons and

2) Two (2) two (2) month seasons

c) Each season is comprised of up to eight (8) Time Periods for participation and two

(2) response time options, either a 10-minute or a 30-minute response time.

5.4 Automated Demand Response

Austin Energy currently operates an Automated Demand Response program in support of the Commercial Demand Response program (voluntary Automated Demand Response (ADR) implementation) and participation in the ERCOT Emergency Response Service program (mandatory Automated Demand Response implementation). Austin Energy provides a bonus to customers who install equipment to enable Automated Demand Response. The bonus aims to help offset the cost of ADR procurement and commissioning. Under the current structure of the Automated Demand Response program, the participant (customer) holds full ownership and responsibility for the Automated Demand Response equipment which includes the design, procurement, installation, maintenance, and sustains operability/functionality of the Automated Demand Response equipment.

5.4.1 Requirements of Automated Demand Response equipment for participation in Austin Energy’s program include the following:

a) Equipment shall be OpenADR 2.0a/b standard compliant.

b) Equipment shall be certified through Open Automated Demand Response

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Alliance compliance testing.

c) Equipment shall be UL compliant.

d) Equipment/software encryption requirements shall be compliant with

OpenADR 2.0a/b standard.

e) Equipment shall be capable of functioning as a gateway to the customer’s existing Building Management Systems/Building Automation Systems.

1) Across the Austin Energy service territory, customer Building Management

Systems/Building Automation Systems are expected to be from a variety of manufacturers, which may impact the direct compatibility of Automated Demand Response equipment.

2) Alternatively, Automated Demand Response equipment may be wired to control specific end-use devices or through dry-contact relays.

f) Equipment license files shall be provided to Austin Energy (in the event of future Austin Energy ownership of the devices).

g) Equipment shall be equipped with surge protectors.

h) Equipment and installation shall have a one-year warranty on parts and labor.

i) Equipment shall be connected to a reliable communication medium that meets the following standards:

1) System Up-time: The system shall be available at a minimum of 99% of the time.

2) Signal Speed/Latency: The system shall provide signal receipt within 10 minutes of generating signals.

5.4.2 Reference Austin Energy’s current Automated Demand Response Technical Guide (Exhibit A) to assisting customers configure and commission Automated Demand Response equipment

5.4.3 Austin Energy currently manages a Demand Response Automation Server, as its Automated Demand Response (ADR) head-end software, called EISS Virtual Top Node Server. IP Keys’ EISS is an OpenADR 2.0b-certified Virtual Top Node. This Demand Response Automation Server is triggered by the Energy Profiler Online Administrator tool at the same time that email and/or text notifications are sent to customers. The triggering of the Demand Response Automation Server initiates an automated demand response event which sends out an Open Automated Demand Response signal to all customers participating in automated demand response.

5.4.4 There are currently seven (7) customers managing over 100 sites utilizing Automated Demand Response for Commercial Demand Response participation.

Currently, no customers are participating in ERS with Austin Energy as a Qualified Scheduling Entity.

5.5 Austin Energy’s Demand Response PowerPartner Programs and Portfolio

5.5.1 Power Partner Thermostat Program

Austin Energy customers receive a $50 energy efficiency rebate for each new smart

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Austin Energy has the ability to adjust Power Partner thermostats on high energy use days. These event days will typically occur for two (2) hours between 3:00 p.m. – 6:00 p.m. during the summer (June 1 – September 30) and are utilized for 4CP and price responsive Demand Response. However, Austin Energy may conduct events outside of these windows for grid emergencies. During these Demand Response events, thermostats will be adjusted by 2° to 4° and may include pre-cooling or pre-heating prior to an event to help prolong the comfort level of participants. Pre-cooling and pre-heating are adjustments to the existing thermostat settings by 2°, up to 30-minutes before the start time of an event.

Events can occur up to three (3) times per week and no more than 25 times during the year. However, during extreme weather conditions, Austin Energy may conduct events up to five (5) times per week.

5.5.2 Power Partner Electric Vehicle Program

Participants receive a $50 bill credit for enrolling a qualifying Level 2 EV charger or qualifying vehicle in the Power Partner EV program. Customers also receive a $25 bill credit annually for each year they remain in the program. During Power Partner events, Austin Energy will make minor, remote adjustments to enrolled Level 2 EV chargers or qualifying vehicles.

Events typically occur during the summer (June 1 – September 30) between 2:00 p.m. – 10:00 p.m. A maximum of 15 Power Partner events will occur per month.

During extreme weather circumstances, Austin Energy may conduct events outside of these windows.

5.5.3 Power Partner Battery Program

Customers receive a $500 rebate for each eligible and newly installed battery system that receives Permission to Operate (PTO) on or after February 18, 2025.

Participants also receive annual performance payments based on system size, backup reserve level, and average event hours. Third-party-owned (TPO) systems are not eligible.

During Power Partner Battery events, Austin Energy remotely adjusts enrolled battery systems. Events can occur any day, at any time, typically lasting 2 to 3 hours, with up to 40 events per year (excluding grid emergencies). Austin Energy does not send event notifications. All alerts appear through your battery manufacturer’s app. Participants may override an event at any time through the battery application.

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Events will not reduce a participant’s battery below the selected backup reserve margin, and most systems recharge within 24 hours. During events, batteries may send excess power back to the grid after serving the participant’s home. Austin Energy generally avoids scheduling events during severe weather so customers can maintain backup power.

5.6 Primary Demand Response Program Business Functions

Austin Energy has identified the following primary Demand Response program business functions necessary for the success of the Commercial Demand Response program, as well as analysis and reporting for Austin Energy’s Demand Response portfolio. Contractor and Austin Energy responsibilities for performing each function are outlined in Section 6 of this Scope of Work.

5.6.1 Program Design and Customer Enrollment

5.6.1.1 Marketing

5.6.1.1.1 Identify and develop target markets.

5.6.1.1.2 Develop a customer recruitment database.

5.6.1.1.3 Conduct meetings with Key Account Managers prior to the

Demand Response season for program recruitment.

5.6.1.1.4 Conduct customer Demand Response education sessions.

5.6.1.1.5 Provide input on potential future Demand Response

incentive structures.

5.6.1.2 Participant Enrollment

5.6.1.2.1 Conduct and prepare Demand Response audits on-site

and virtual assessments.

5.6.1.2.2 Develop an individualized Demand Response plan

for each participant, as requested.

5.6.1.2.3 Conduct customer program enrollment procedures.

5.6.1.3 Customer Automated Demand Response Systems Design and Installation

5.6.1.3.1 Suggest changes and upgrades to Austin Energy’s current Automated Demand Response systems.

5.6.1.3.2 Support the customer in the requirements, design, and identification of Automated Demand Response equipment for procurement.

5.6.1.3.3 Assist customers in developing Automated Demand

Response strategies.

5.6.1.3.4 Assist in the installation process of Automated Demand Response equipment.

5.6.1.3.5 Assist in testing and commissioning new and existing

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Automated Demand Response participants.

5.6.1.3.6 Review test curtailment performance and suggest

modifications and improvement to curtailment strategies.

5.6.1.3.7 Stay current on Automated Demand Response

technologies and industry standards.

5.6.2 Pre-Event Business Functions

5.6.2.1 Decision to Call Event

5.6.2.1.1 Define control strategies.

5.6.2.1.2 Forecast load.

5.6.2.1.3 Monitor ERCOT prices.

5.6.2.1.4 Monitor real-time loads to predict the amount of load available for curtailment.

5.6.2.2 Notification to Participants and Other Stakeholders

5.6.2.2.1 Provide notifications to both manual and Automated

Demand Response participants via email, telephone, pager/text message, or online applications.

5.6.3 During-Event Business Functions

5.6.3.1 Direct Control Signal

5.6.3.1.1 Send control signals via the Demand Response

Management System to devices connected through Automated Demand Response equipment.

5.6.3.2 Monitoring

5.6.3.2.1 Track Austin Energy loads, ERCOT loads, and ERCOT

prices on a real time basis.

5.6.3.2.2 Make any necessary adjustments to the Event plan based on tracked conditions.

5.6.4 Post-Event Business Functions

5.6.4.1 Settlement

5.6.4.1.1 Capture interval data from Austin Energy, Energy Profiler Online Product system.

5.6.4.1.2 Estimate a baseline and associated kW and kWh savings for each participating customer account.

5.6.4.1.3 Apply incentive rates to the kW load savings to calculate incentive payments.

5.6.4.1.4 Process the incentive payments.

5.6.4.1.5 Send incentive payment checks and/or process utility bill credits for incentives through Austin Energy’s Customer

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Care and Billing utility billing system and Energy Efficiency Incentive and Rebate Platform.

5.6.4.2 Reporting

5.6.4.2.1 Develop summary statistics, including kW and kWh

reductions, for all Austin Energy Demand Response programs.

5.6.4.2.2 Produce program reports for internal use.

5.6.4.2.3 Produce program reports for presentation to City Council, the public at large, the North American Electric Reliability Corporation, and other regulatory parties.

5.6.4.3 Equipment Maintenance and Technical Support

5.6.4.3.1 Maintain Austin Energy ‘s centralized head-end hardware and software systems.

5.6.4.3.2 Provide technical support for customer-owned equipment in the field.

5.6.4.4 Customer Feedback and Satisfaction

5.6.4.4.1 Produce summary reports of participant load response after Events.

5.6.4.4.2 Conduct participant satisfaction surveys to obtain

participant feedback and gauge program performance.

5.6.4.4.3 Maintain regular contact with participants.

5.6.4.5 Planning and Analysis

5.6.4.5.1 Review the overall DR program on a regular basis.

5.6.4.5.2 Develop lessons learned.

5.6.4.5.3 Analyze benefits and costs.

5.6.4.5.4 Analyze the success of the program as compared to target goals.

6.0 CONTRACTOR TASKS/REQUIREMENTS

6.1 Contractor’s Responsibilities

The anticipated quantities and level of effort for the Contractor’s task performance is outlined in the Cost Proposal Worksheet.

6.1.1 Task 1: Program Initiation Meeting

6.1.1.1 The Contractor shall schedule and conduct a program initiation meeting at the Austin Energy office, located at 4815 Mueller Blvd, Austin TX 78723 within 30-calendar days of contract award.

6.1.1.2 The Contractor shall prepare an agenda for the program initiation

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6.1.1.2.1 The Agenda shall be submitted to the Austin Energy

Program Manager to distribute to the Austin Energy Program Team for review and approval, five (5) business days prior to this meeting.

6.1.1.2.2 The Agenda shall include a list of the Contractor’s key personnel to be present at the program initiation meeting.

6.1.1.2.3 At a minimum, the Agenda shall include, introduction of project stakeholders and their roles, review of the project scope, overview of deliverables, communication and reporting protocols, next steps and action items, etc.

6.1.1.3 The Contractor shall prepare a detailed work plan addressing the contract tasks and key work to providing the services as outlined in the contract. The detailed work plan must be submitted to the Austin Energy Program Manager for review. At a minimum, the work plan shall include:

6.1.1.3.1 Submission timelines, project schedule outlining

milestones, deliverables and critical path items

6.1.1.3.2 Review and approval procedures

6.1.1.3.3 Expectations for updates or revisions

6.1.1.4 The Contractor’s key personnel shall meet with representatives from Austin Energy. At a minimum, the Key personnel shall:

6.1.1.4.1 Provide an overview of the project approach, objectives, methods, implementation team, roles and responsibilities and proposed program.

6.1.1.4.2 Discuss evaluation methodologies.

6.1.1.4.3 Discuss Austin Energy data requirements, including

responding to Austin Energy’s questions and providing requested documentation in a timely manner.

6.1.1.4.4 Cover the detailed work plan and provide a time schedule for all required tasks.

6.1.1.4.5 Cover communication protocols, points of contact and reporting expectations.

6.1.1.5 The Contractor shall prepare and submit to the Austin Energy Program Manager, a memorandum documenting the results of the project initiation meeting, which must be submitted within five (5) business days of the meeting to the Austin Energy Team for approval.

6.1.2 Task 2: Customer Acquisition and Engagement

6.1.2.1 Marketing and Outreach

6.1.2.1.1 The Contractor shall develop a comprehensive marketing and outreach plan to Austin Energy demonstrating how to

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6.1.2.1.2 The Contractor shall develop target markets through existing market research or experiential information about what type of buildings or customer types to target to maximize recruitment efforts.

6.1.2.1.3 The Contractor shall identify potential candidates for participation in the Commercial Demand Response program.

6.1.2.1.4 The Contractor shall initiate discussions and schedule meetings with Key Account Managers regarding program recruitment and key accounts eligible for the Program.

6.1.2.1.5 The Contractor shall lead meetings and discussions with the potential candidates regarding demand response opportunities as requested by Austin Energy. Customer meetings will be coordinated with Austin Energy, Energy Efficiency Services and Key Accounts.

6.1.2.1.6 The Contractor shall develop appropriate Demand

Response templates for presentment to potential candidates following Austin Energy’s established Brand Identity Guidelines. The Demand Response templates must be submitted to the Austin Energy Program Manager for approval.

6.1.2.2 Customer Enrollment

6.1.2.2.1 The Contractor shall develop personalized solutions and recommendations for potential candidates to encourage and promote Program enrollment. At a minimum, the solution shall:

a) Identify the history of the customer’s Demand Response participation and recognize potential Demand Response opportunities.

b) Identify the demand response potential that may be available from the customer and the estimated earnings.

c) Generate reports and educational material needed and requested by the Austin Energy Program Manager.

6.1.2.2.2 The Contractor shall develop a process for conducting Demand Response audits and for developing Demand Response plans which must be submitted to Austin Energy Program Manager for approval prior to implementation.

6.1.2.2.3 Demand Response Audits and Customer Site Visits

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a) The Contractor shall conduct Demand Response audits and on-site investigations to determine load curtailment potential, for each participant as approved by the Austin Energy Program Manager.

b) The Contractor shall coordinate customer site visits with Austin Energy, Austin Energy Efficiency Services and Key Accounts.

6.1.2.2.4 The Contractor shall develop an individualized Demand Response plans for each participant following the Demand Response audit, as requested. At a minimum, the Demand Response Plan shall:

a) Include manual control procedures, automated control procedures, or combination of control procedures to facilitate load curtailment.

b) Include a list of steps for the customer to take during an Event for any identified manual control procedure.

c) Include a list of equipment to be controlled during an Event for any identified automated control procedures.

d) Include incorporating the staggered restart of normal operations to avoid load rebound spikes following an Event for all control procedures.

e) Include participation in the Commercial Demand Response program.

f) Include Participation in ERCOT’s Emergency Response Service program for any period or combination of periods outside of the Commercial Demand Response period when applicable.

6.1.2.2.5 The Contractor shall provide input regarding individual customer Demand Response plans at the request of the Austin Energy Program Manager. The Austin Energy Program Manager will sign off on the list of customers and plans for implementation before the Contractor moves forward.

6.1.2.2.6 The Contractor shall provide potential load reduction analysis for customers who elect to participate in ERCOT’s Emergency Response Service program.

6.1.2.2.7 The Contractor shall provide recommendations to the Austin Energy Program Manager and Team for minimum capacity offers for Emergency Response Service Resource Identification submissions to ERCOT.

6.1.2.2.8 The Contractor shall develop a Demand Response audit and Demand Response plan form. At a minimum, the form shall include the format, structure and type of information

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6.1.2.3 Customer Engagement and Performance Feedback

6.1.2.3.1 The Contractor shall develop a customer engagement and retention plan. The customer engagement and retention plan shall Identify opportunities for customer engagement, education, and coaching.

6.1.2.3.2 The Contractor shall submit the Customer Engagement and Retention Plan to the Austin Energy Program Manager for approval prior to implementation.

6.1.2.3.3 The Contractor shall produce mid-season and end-of-season reports (Report Cards) on Event performance for each participant to facilitate understanding and improvement of their Demand Response strategies and performance. The Report Cards at a minimum shall include:

a) Provide individual Event performance

b) Provide total season performance to date

c) Provide total incentives earned to date

d) Provide other metrics that the contractor deems valuable to the customer or Austin Energy

6.1.2.3.4 The Contractor shall work with Austin Energy to automate the mid-season and end-of-season reports (Report Card) development processes.

6.1.2.3.5 The Contractor shall perform an annual pre-cooling and rebound analysis of the prior season’s performance for the Commercial Demand Response program to identify negative impacts to participants. The annual pre-cooling and rebound analysis must be submitted to the Austin Energy Program Manager for review and approval and at a minimum shall:

a) Identify individual customers that show a significant impact from pre-Event pre-cooling which resulted in a new peak demand level.

b) Identify individual customers that show a significant impact from post-Event rebound effect which resulted in a new peak demand level.

c) Include the overall rebound effect of the Austin Energy system after each Event.

6.1.2.3.6 The Contractor shall provide the approved results of the annual pre-cooling and rebound analysis to customers

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6.1.2.3.7 The Contractor shall provide coaching to customers on Event performance and the negative impacts of pre-cooling and rebound effect on demand to improve Event performance.

6.1.2.3.8 The Contractor shall lead customer educational sessions in coordination with the Austin Energy Program team and Key Account Managers.

6.1.3 Task 3: Automated Demand Response

6.1.3.1 Design of Customer Automated Demand Response Systems

6.1.3.1.1 The Contractor shall support customers with the potential for automated control procedures in the procurement of Automated Demand Response equipment for participation in the Commercial Demand Response program and ERCOT’s Emergency Response Service program (as applicable).

6.1.3.1.2 The Contractor shall identify the Automated Demand

Response requirements and develop a system design compatible with Austin Energy’s system.

6.1.3.1.3 The Contractor shall provide recommendations for

customer Automated Demand Response equipment and controlled system components.

6.1.3.1.4 The Contractor shall ensure customer equipment

complies with Austin Energy's requirements identified in this Scope of Work.

6.1.3.2 Installation of Customer Demand Response Equipment

6.1.3.2.1 The Contractor shall meet the installation needs of the customer, from providing technical consulting to turn-key installation of any necessary Demand Resource equipment; customer needs could be either remote or onsite. Installation needs will be verified and approved by the Austin Energy Program Manager on a per customer basis.

6.1.3.2.2 The Contractor shall coordinate and provide technical support for software integration and Application Programming Interface (API) communication required for participation in the program for Commercial Demand Response and Emergency Response Service.

6.1.3.2.3 The Contractor shall be responsible for commissioning Automated Demand Response equipment to verify its functionality upon installation and prior to the customer’s

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6.1.3.2.4 The Contractor shall provide documentation of the

equipment installation and commissioning to Austin Energy upon successful installation and commissioning.

The Contractor shall develop and submit the format to the Austin Energy Program Manager for approval after the contract has been awarded.

6.1.3.3 Equipment Maintenance and Technical Support

6.1.3.3.1 The Contractor shall provide maintenance

recommendations and technical support for customer-owned equipment at participant sites, as requested by the Austin Energy Program Manager; customer needs could be either remote or onsite.

6.1.3.3.2 The Contractor shall be available weekdays to provide technical support for the following equipment:

a) Virtual End Nodes of various types (e.g., software, gateways, thermostats);

b) Relays;

c) Modems;

d) Any other associated equipment that the customer would need for enrollment into the Automated Demand Response program or ERCOT’s Emergency Response Service program that would not typically be needed for everyday equipment control.

6.1.3.3.3 The Contractor shall oversee and provide support in replacing outdated and designated End of Life Automated Demand Response equipment.

6.1.3.3.4 The Contractor shall provide recommendations and

technical support on technological upgrades to the Austin Energy Program Manager and Program Team regarding Austin Energy’s Automated Demand Response infrastructure.

6.1.4 Task 4: Post-Event Business Functions

6.1.4.1 Commercial Demand Response Program Progress Reporting

6.1.4.1.1 The Contractor shall develop post-Event summary statistic reports after every Commercial Demand Response Event, including kWh and kW reductions, using data provided by Austin Energy from the settlement process, the Demand Response Management System, and the corporate databases.

6.1.4.1.2 The Contractor shall develop and provide aggregated

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Scope of Work – RFP 1100 DCM3051 Page 17 of 29 summary statistic post-Event reports for the Commercial Demand Response Program to Austin Energy management weekly and monthly during the Demand Response season, including kWh and kW reductions, using data provided by Austin Energy from the settlement process; the Demand Response Management System; and the corporate databases.

6.1.4.1.3 The Contractor shall assist with the downloading and formatting of Interval Data Recorder data required for monthly submission and end of Standard Contract Term submission to ERCOT’s Emergency Response Service program.

6.1.4.1.4 The Contractor shall analyze the Interval Data Recorder data to identify missing and/or invalid data.

6.1.4.2 Planning and Analysis

6.1.4.2.1 The Contractor shall conduct bi-weekly conference calls with the Austin Energy Program Manager and the Austin Energy Program Team to discuss program opportunities and status.

6.1.4.2.2 The Contractor shall assist Austin Energy with the

planning, analysis, and support of new Demand Response technologies and programs and future inclusion of Distributed Energy Resources, as a standalone Demand Response strategy or within a Distributed Energy Resource framework.

a) Technologies may include but are not limited to

Electric Vehicles, Backup Generators, Behavioral Demand Response, Battery Energy Storage, Thermal Energy Storage Systems, and Water Heater Controls.

b) Other analysis could include evaluating technology resources for participation in ERCOT market programs.

6.1.4.2.3 The Contractor shall regularly analyze the Commercial Demand Response Program throughout the contract term and provide recommendations on:

a) Program optimization, effectiveness, and benchmarking against industry best practices.

b) Program evolution to meet changing market conditions and customer needs.

c) Lessons learned and continuous improvement.

6.1.4.2.4 The Contractor shall assist Austin Energy with the

evaluation of proposed changes to Automated Demand Response policies, including incentives and equipment ownership.

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Scope of Work – RFP 1100 DCM3051 Page 18 of 29

6.1.4.3 Reporting Upon Request

6.1.4.3.1 Summary Statistic Report: The Contractor shall develop and provide a Summary Statistic Report for the Commercial Demand Response Program annually. At a minimum, the Summary Statistic Report shall include the following:

a) kWh and kW reductions,

b) Using data provided by Austin Energy from the settlement process;

c) The Demand Response Management System; and

d) The corporate databases, as requested by the Austin

Energy Program Manager.

6.1.4.3.2 Performance Analysis Reports: The Contractor shall

develop and provide performance analysis reports of the Demand Response program portfolio annually, including:

a) top-down (Austin Energy load zone meter data) and

b) bottom-up (customer meter data) analysis of real-time market price and 4CP cost avoidance, as requested by the Austin Energy Program Manager.

6.1.4.3.3 Monthly and Annual Program Reports: The Contractor shall produce monthly and annual program reports for the Commercial Demand Response Program and Demand Response Program as follows:

a) Commercial Demand Response Program and the

Demand Response Program portfolio for internal use and presentation to internal stakeholders, as requested by the Austin Energy Program Manager.

b) Commercial Demand Response Program and the Demand Response program portfolio for presentation to City Council, the public at large, the North American Electric Reliability Corporation, and other regulatory parties, as requested by Austin Energy Program Manager.

6.1.4.3.4 Season End Report: The Contractor shall develop a Season End Report and Presentation annually, upon request by the Austin Energy Program Manager. At a minimum, the report shall include:

a) Compiling and formalizing results of the Reporting efforts.

b) Providing an electronic copy of the report in PDF format. The electronic copy shall be submitted to the Austin Energy Program Manager.

c) Conducting a presentation of the highlights and critical data/findings of the Season End Report to the Austin Energy Program Manager and Austin Energy Program

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Team.

6.1.5 Task 5: Achieve Program Performance Growth and Bonus

6.1.5.1 The Contractor shall expand participants and participation in the Commercial Demand Response Program through outreach, recruitment, support, and coaching to achieve Program growth.

6.1.5.2 Annual program growth is based on the annual increase in achieved program capacity megawatts.

6.1.5.3 Program capacity is measured as the first-hour Event performance averaged over the demand response season and is verified through third-party evaluation.

6.1.5.4 Performance growth payment will be capped at $78,000 per contract year.

6.1.5.5 Payouts will be calculated by Austin Energy based on megawatts in excess of the bottom of the range (5 or 8) and will be structured as follows:

Annual Program Growth Achieved

Annual Performance Payment Example

If the Program achieves 10 MW of DR capacity growth for a given year, according to 5.1.2.4, they will be paid as follows:

< 5 MW (status quo) $0 $0.00 per megawatt

5 ≤ MW ≤ 8 $10,000/MW 3MW X $10,000/MW = $30,000

> 8 MW $15,000/MW 2 MW X $15,000/MW = $30,000

Note: Contractor is Eligible to get $60,000 for this example.

* Payments will be rounded to the nearest dollar

6.1.6 Task 6: Maintain Security and Confidentiality of Information

6.1.6.1 The Contractor’s staff associated with Austin Energy data shall agree to protect the data in compliance with:

6.1.6.1.1 Austin Energy’s current Automated Demand Response

Technical Guide (Exhibit A)

6.1.6.1.2 Austin Energy IT Data Handling Controls (Exhibit B)

6.1.6.1.3 FACTA Affidavit (Exhibit C)

6.1.6.1.4 Austin Energy Network Connection Agreement (Exhibit D)

6.1.6.1.5 Consultants Remote Access Form (Exhibit E)

6.1.6.2 The data may not be used for any other purposes by the contractor.

6.1.6.3 The Contractor shall secure all business records and files created and maintained by the Contractor that contain Austin Energy customer records. All business records must be secured to protect against unauthorized access or use.

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Scope of Work – RFP 1100 DCM3051 Page 20 of 29

6.1.6.4 If electronic databases outside of the Solution are prepared as part of the work, the Contractor shall deliver two (2) copies of the databases with documentation to the Austin Energy Program Manager in electronic form.

6.1.6.5 The Contractor shall provide any other additional materials and work products at the request of the Austin Energy Program Manager.

6.1.6.6 The Contractor shall maintain as confidential all information received from Austin Energy for the purpose of completing the activities throughout the term of the contract.

6.1.6.7 The Contractor shall not further use, distribute, or make available any electronic files, hard-copy reports or other work products developed as a result of work conducted under this Scope of Work.

6.2 Single Point of Contact

6.2.1 The Contractor shall designate a Single Point of Contact (SPOC) who shall be at the work site during all hours worked by the Contractor's employees.

6.2.2 The Contractor’s SPOC shall be fluent in the English language and shall be able to communicate effectively with the Austin Energy Spill Coordinator Representative.

6.2.3 The Contractor’s SPOC shall have the authority to dispatch Contractor personnel;

and shall have full decision-making authority on behalf of the Contractor for all services provided under this Contract.

6.2.4 The Contractor’s SPOC shall be responsible for inspecting, monitoring, and supervising the Contractor’s employees, ensuring adherence to the work schedule, safety requirements, and quality of work.

6.2.5 The Contractor shall not remove the SPOC from the project without prior written consent from the Austin Energy Spill Coordinator Representative.

6.2.6 The Contractors shall provide a designee for the SPOC, during times the SPOC is unavailable (due to vacation, travel, etc., for example). The designee shall meet the same requirements as specified for the SPOC within this Scope of Work and shall have the same authority as the SPOC. Contractor shall provide the contact information for the designee for the SPOC to the Austin Energy Spill Coordinator Representative

7.0 AUSTIN ENERGY RESPONSIBILITIES

7.1 Customer Acquisition and Engagement

11.1.1 Marketing and Outreach

7.1.1.1 Austin Energy will use internal resources to market the Program with direction from the Contractors Comprehensive Marketing and Outreach Approved Plan.

7.1.1.2 Austin Energy will maintain the primary role in determining the incentives

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7.1.1.3 Austin Energy will provide access to a customer recruitment database to identify and recruit potential participants.

7.1.1.4 Austin Energy's Key Accounts and Marketing groups will provide input on potential candidates for participation in the Commercial Demand Response program.

7.1.1.5 Austin Energy's Key Accounts and Marketing groups will participate in meetings and discussions with potential candidates regarding demand response opportunities.

7.1.1.6 Austin Energy's Key Accounts and Marketing groups will refer interested customers to the Program Enrollment Process.

11.1.2 Customer Enrollment

7.1.2.1 Austin Energy will execute and administer the contract for the delivery of load reduction directly with the interested customers.

11.1.3 Customer Engagement and Performance Feedback

7.1.3.1 Austin Energy will be responsible for gauging customer feedback and satisfaction through regular communication with program participants.

7.1.3.2 Austin Energy will provide these results to the Contractor for consideration in planning and analysis.

11.2 Automated Demand Response

11.2.1 Austin Energy will manage and operate the Open Automated Demand Response Virtual Top Node or Demand Response Management System.

11.2.2 Austin Energy will be responsible for the equipment maintenance and technical support of Austin Energy’s centralized head-end hardware and software systems.

11.3 Pre-Event Business Functions

11.3.1 Austin Energy will be responsible for making all decisions to Call Event.

11.3.2 Austin Energy will be responsible for forecasting Austin Energy system loads, monitoring ERCOT system load forecasts, and monitoring ERCOT market prices in support of Event decision making.

11.3.3 Austin Energy will be responsible for sending Event notifications to both manual and Automated Demand Response participants and other stakeholders via email, telephone, text message, or online applications.

11.4 During-Event Business Functions

11.4.1 Austin Energy will be responsible for sending direct control signals via the Demand Response Management System to devices connected through Automated Demand Response equipment.

11.4.2 Monitoring

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11.4.2.1 Austin Energy will track Austin Energy and ERCOT loads and ERCOT settlement point prices on a real-time basis.

11.4.2.2 Austin Energy will make any necessary adjustments to the Event plan.

11.4.2.3 Austin Energy will notify customers via email, telephone, text message, or online applications in the event of changes to the Event.

11.5 Post-Event Business Functions

11.5.2 Settlement

11.5.2.1 Austin Energy will own, install, and maintain MV-90 or Landis & Gyr AMI meters for the collection of customer load data for participants in the program.

11.5.2.2 Austin Energy will maintain a contract with Schneider Electric for a tool that currently performs settlement services for the Commercial Demand Response program.

11.5.2.2.1 The tool captures interval data.

11.5.2.2.2 The tool estimates a baseline for each participating customer account.

11.5.2.2.3 The tool estimates associated kW and kWh savings for each participating customer account.

11.5.2.2.4 The tool applies incentive rates to the kW load savings to calculate incentive payments.

11.5.2.2.5 The tool performs the settlement process after each Event and/or at the end of the season.

11.5.2.2.6 The tool reviews data import consistency and data gaps on an ongoing basis throughout the Demand Response season.

11.5.2.3 Austin Energy will provide access to the Energy Profiler Online system of record to pull load profiles and associated reports for use in reporting, planning and analysis.

11.5.3 Austin Energy will process/send incentive payment…