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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: MAY 7, 2024
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AGREEMENT FOR ENERGY TRADING AND RISK
MANAGEMENT SYSTEM IMPLEMENTATION AND
INTEGRATION PROJECT MANAGEMENT SERVICES
ATTACHMENT (Y/N): YES ITEM # 16
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve an agreement (Agreement) with Baringa Partners LP, for project management services (Services) for implementation of the Energy Trading and Risk Management System Implementation and Integration Project for a 15- month term with two 12-month extension options to complete the Services, in an amount not to exceed $2,100,000 plus a 15% contingency for as-needed extra services; and
2) Authorize the Public Utilities General Manager or designees, on behalf of the City of Anaheim (City), to execute any and all related documents as necessary and take such actions as are necessary or advisable to implement, fund, and administer the Agreement.
DISCUSSION:
At its meeting on April 24, 2024, the Public Utilities Board recommended that the City Council approve the Agreement for Energy Trading and Risk Management System implementation and integration project management services.
Anaheim Public Utilities (APU) utilizes a 17-year old Energy Trading and Risk Management System to conduct its wholesale energy transactions and related data services. The current software system is limited in its functionality and is in need of upgrading to a modern technology platform to effectively manage APU’s $300 million annual power supply budget. As regional energy markets and regulatory requirements have become more complex, a more sophisticated system that maximizes wholesale transactions will help to keep customer electric rates affordable.
To facilitate this upgrade, the services of a professional consulting firm are needed to ensure that system integration does not disrupt daily operations. A Request for Proposals (RFP) has been issued for the technology solution and will be brought forward for the Public Utilities Board and City Council consideration at a later date. The professional consultant will perform integration, testing, data migration, verifying compliance Agreement for Energy Trading and Risk Management System Implementation and Integration Project Management Services May 7, 2024
requirements, documenting workflows, establishing reporting and related activities prior to, during, and following implementation.
One of the critical functions needed in a new technology platform is referred to as renewable integration. As APU progresses on the path to meet California’s aggressive environmental compliance requirements, scheduling of renewable resources and utilizing wholesale markets to manage gaps when APU has either too much or too little generation is needed. Additionally, APU seeks to incorporate battery energy storage solutions in the near future, which requires new dispatching protocols and data systems to maximize their use and maintain grid stability. The existing software system lacks the features and capabilities necessary to integrate and optimize the operational capabilities of these types of resources in a cost-effective manner.
On November 7, 2023, APU issued an RFP for project management services to implement a new technology system. Seven firms submitted proposals, and the top two firms were short-listed for detailed interviews on their experience, technical expertise, and record of success on similar projects, as follows:
Firm Rank
Baringa Partners LP 1
Utilicast L.L.C. 2
The review process followed Council Policy 4.1 – Selection of Professional Consultants, and based on their qualifications and cost proposal, Baringa Partners LP (Baringa) is recommended as the highest rated firm. Baringa is a full-service consulting firm and demonstrated their experience in managing major technology systems for the energy industry, with similar projects completed for Portland General Electric Company, Florida Power & Light, and BP Energy. Baringa’s personnel demonstrated their knowledge of California utility operations having direct experience with San Diego Gas & Electric, Pacific Gas & Electric, Southern California Edison, and PacifiCorp.
The Agreement is for a fifteen-month term with two optional one-year extension periods for any post-implementation needs identified by APU. The Agreement will have a not- to-exceed amount of $2,100,000, plus a 15% contingency for as-needed extra services.
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2023/24 restricted electric budget, and future years will be subject to City Council’s approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Agreement with Baringa Partners LP for Project Management Services