Commodity Management » Bericap
"360 Energy knew what to ask, and knows our business. I relied on their expertise to structure the RFP around our individual needs. As a result, they were able to secure the best economic and operational agreement for us."- Gord Shelley
With the recent impetus towards clean and renewable generation in Ontario, the Ontario Power Authority released the latest Demand Response Program in early 2008. Demand Response 3 (DR3) was created as another mechanism to curb peak demand in the province when supply may fall short. However, with so many Demand Response options in the market, the Burlington Bericap facility which produces plastic container caps, was not sure which option best suited their particular needs. As a result, they partnered with 360 Energy to pursue a customized offering that would meet their requirements. After studying their load profile, Bericap determined an available curtailment load of 800 kilowatts.
Once armed with the correct data, it was time to engage the marketplace and determine which contracts were available. After meeting with various aggregators, Bericap decided that there was an opportunity for their curtailed load. Working with 360 Energy, they released an RFP and received bids from 6 different aggregators. When considering the savings between the various contract offerings, the savings amounted to over $25,000 per year!
As a result, they successfully entered the program on October 1st, 2008 with contract and payment terms that they were comfortable with. They recently participated in two curtailment events that were called on November 18th and 19th. Positive outcomes for Bericap included comparing contracts on term length, penalties and payments. A review process will be held after curtailment events to verify the payments received.
One of the main components that is usually a roadblock to demand response was quickly addressed at Bericap. Most sites are wary of such programs as the curtailed load has a perceived need to reduce production when in fact, it is quite the opposite. The curtailment should be comprised of non critical loads that can be temporarily scaled back with little to no impact on production. Not only will the site save on peak energy prices which occur when supply is tight, but they will also be able to use this load as part of their program to receive DR3 participation payment.