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THULE ENERGY STORAGE TO PROVIDE
COOLDATA PLATFORM, PREVENTATIVE
MAINTENANCE AND BREAK-FIX SERVICES
City Council
May 17, 2022
Public Utilities Department
RiversideCA.gov
2 1. Assembly Bill 2514 mandated CA electric
utilities to adopt Energy Storage
Procurement Targets (ESPT)
2. City adopted first ESPT of zero (0)
megawatts
a) Board on September 4, 2014
b) Council on September 23, 2014
3. City adopted second ESPT of six (6)
megawatts
a) Board on September 11, 2017
b) Council on September 26, 2017
BACKGROUND
Ice Bear
Unit
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3 4. Goods and Services Contract with Ice
Energy approved by:
a) Board on January 23, 2015
b) Council on March 3, 2015
5. Contract Structure:
a) Peak-Load Reduction Pilot Program using
Ice Bear technology
b) 5-Year Term
c) 5 MW capacity by end of Term
d) Remote monitoring and maintenance
BACKGROUND
RiversideCA.gov
4 ICE BEAR FUNCTIONALITY
During off-peak hours (night), Ice
Bear makes ice in an insulated
tank and stores it until dispatched
During peak hours, when
dispatched, Ice Bear turns off the
HVAC compressor and provides
ice cold refrigerant to the AC unit
Once all the ice is melted, Ice
charge mode activates during
off-peak hours to restart the cycle
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5 ICE BEARS COMMISSIONED
1. Ice Bear units installed: 111
2. # of customer locations: 46
3. Installed capacity: 3.12 MW
4. City owns all Ice Bear units
RiversideCA.gov
6 1. Provides an estimated benefit of $182K to RPU during summer months(June – October) each year, from
capacity value and load shifting
2. Reduced energy consumption and demand during
peak hours
3. Energy efficiency with new HVAC replacements
4. Ancillary Benefits such as customers desire to
implement additional energy efficiency measures
PROGRAM VALUES
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7 1. Contractual obligation to keep Ice Bear units in good condition
2. Section 12 of License Agreement – “Maintenance of the Ice Bear Equipment shall be performed by Riverside or its contractor.” a) Customer may request inspection of or repairs to the Ice Bear units at no cost (provided that such inspection and repair work is not due to damage caused by Customer)
b) City is responsible for costs asso ciated with inspections or repairs c) Repair work will be at the sole discre tion of City upon results of inspection
3. Section 18 of License Agreement - Indemnity
a) To the extent City fails to keep the Ice Bear units in good condition, the City will be responsible for any resulting damage and injury to any person or property caused by negligent act or omission or willful misconduct
CITY’S OBLIGATION TO MAINTAIN
RiversideCA.gov
8 1. Ice Energy filed bankruptcy in December, 2019
2. Thule Energy Storage acquired all of Ice Energy’s assets and intellectual property
3. Thule offered to provide maintenance se rvices for the Ice Bear units in the City
4. Thule currently provides Ice Bear maintenance services to:
a. City of Azusa
b. City of Colton
c. City of Glendale
d. City of Moreno Valley
e. Southern California Edison (SCE)
THULE ENERGY STORAGE
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9 SCOPE OF SERVICES
CoolData + Preventative
Maintenance
• Remote monitoring &
diagnostics
• 14-step maintenance
designed to maximize
operating life of Ice Bears
• Performed by licensed
and certified technicians
Break & Fix
• Standby to respond to
repair requests
• Repair at City’s discretion
• Repair costs not-to-
exceed approved
budget
Five-year Term and 30-Day Notice Termination Right
RiversideCA.gov
10 PRICING
CoolData + Preventative
Maintenance
$49,950 per year
• Proof of work completion
before any payment
• 10% lower than original Ice
Energy Contract
Break & Fix
Labor: $135/Hr. (first 2 Hrs.)
$180/Hr. (thereafter)
• All standard parts replacement
pass through at Cost
• Non-standard parts
replacement cost preset in
Exhibit B
All Pricing Fixed over the Term of the Agreement
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11 MAINTENANCE COST COMPARAISON BETWEEN ICE ENERGY INC. AND
THULE ENERGY STORAGE
Service Packages First Year Cost Total Cost
5-year term
Ice Energy Remote Monitoring and
Basic Maintenance Service* $52,016 $276,161
Thule Energy CoolData and
Preventative Maintenance Service $49,950 $249,750
Savings $2,066 $26,411
*Note: The Ice Energy Basic Maintenance service package includes an annual 3% escalation.
Approximately a 10% cost saving over 5–year term
RiversideCA.gov
12 FISCAL COST BREAKDOWN
Services First Year Cost Total Cost:
5 Year Term
CoolData and Preventative
Maintenance Expense $49,950 $249,750
Break-Fix Services Budget* $87,000 $455,853
Total $136,950 $705,603
*Note: The amounts shown are budgetary values (with 1.5%/yr. escalation) for Break-Fix Services; they are NOT actual expenditures. Authorization of any Break-Fix Services will be at the sole discretion of the City within approved budgets.
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13 1. Negotiated a 30% price discount below Thule’s standard pricing and substantially lower compared to similar
contracts by other Municipalities
2. Prevent Ice Bear equipment failure and costly repairs
3. Proactive remote monitoring to report and address
equipment issues in a timely manner
4. Standby Break-Fix service allowing timely repairs on reported issues
5. Preserving the value of City’s investments and continuing to provide benefits to participating customers
SERVICES AGREEMENT BENEFITS
RiversideCA.gov
14 No. 2 Community Well-Being
Goal 2.6 Strengthen Community Preparedness for
Emergencies and Disruptive Events to Ensure Effective
Response and Recovery
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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15 That the City Council:
1. Approve the Services Agreement with Ice Bear SPV #1 LLC dba Thule Energy Storage to provide CoolData Platform and
Preventative Maintenance Services and as-needed Break-fix repair services for a five-year term in the total amount of $705,603; and
2. Authorize the City Manager, or his designee, to execute the Agreement and any documents necessary to administer the Agreement, including making minor and non-substantive
changes.
RECOMMENDATIONS
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