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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: SEPTEMBER 26, 2023
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: APPROVAL OF FIRST AMENDMENT TO HIGH VOLTAGE
TRANSMISSION SOFTWARE ANALYTICS DATABASE AND
RELATED SERVICES AGREEMENT
ATTACHMENT (Y/N): YES ITEM # 16
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve the First Amendment (First Amendment) to Software Services Agreement (Agreement) between the City of Anaheim (Anaheim) and Power Market Consulting, Inc. (PMCI) for a one-year extension of the Agreement under its existing terms and conditions, in an amount not-to-exceed $84,000; and 2) Authorize the Public Utilities General Manager or designees, on behalf of Anaheim, to execute and deliver the First Amendment and any related documents and to take such actions as are necessary or advisable to implement and administer the First Amendment and Agreement.
DISCUSSION:
At its meeting on August 23, 2023, the Public Utilities Board (PUB) recommended that the City Council approve the First Amendment to Software Services Agreement for High Voltage Transmission Software Analytics Database and Related Services.
Anaheim Public Utilities (APU) operates within the California Independent System Operator’s (CAISO) controlled transmission grid to deliver power to Anaheim residents and businesses. APU utilizes specialized software to select the most efficient and least- cost transmission paths to import energy into Anaheim based on historical prices, forecasted prices, and regional congestion. The First Amendment to the Agreement will enable APU to continue using the PMCI software system for one additional year until a multi-year solicitation is developed to review available platforms.
With California’s rapid development of renewable resources, such as solar, wind, and battery storage, which have diverse operating characteristics, the task of selecting least- cost transmission paths has become increasingly complex. APU relies on software that is specifically designed to analyze thousands of transmission paths operated by and under the control of the CAISO and other regional electricity grid operators. APU has used Approval of First Amendment to High Voltage Transmission Software Analytics Database and Related Services Agreement September 26, 2023
PMCI’s software since 2018, following a competitive solicitation consistent with City Council Policy No. 4.1. Anaheim selected PMCI based on its ability to meet the minimum qualifications and pricing and because of its reputation for serving other utilities in the CAISO territory, including City of Riverside, City of Santa Clara, and San Francisco Public Utilities Commission.
The Agreement term ends in September 2023, and the one-year extension period provides time to develop a new request for proposals. The software subscription and maintenance costs will have a not-to-exceed amount of $84,000, which is consistent with the original Agreement that included a 3% annual subscription escalation. The First Amendment extends the term of the Agreement for one additional year; all other terms and conditions will remain unchanged.
IMPACT ON BUDGET:
Sufficient funds are included in the Public Utilities Department Fiscal Year 2023/24 Electric Utility Fund budget, and funding for any subsequent year will be subject to City Council approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. First Amendment to Software Services Agreement
2. Software Services Agreement, dated October 9, 2018