201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: SEPTEMBER 10, 2024
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: HIGH VOLTAGE TRANSMISSION ANALYTICS SOFTWARE
AND RELATED SERVICES AGREEMENT
ATTACHMENT (Y/N): YES ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve a software services agreement (Agreement) with Power Market Consulting, Inc. (PMCI) for High Voltage Transmission Analytics Software and related services with an initial term of five (5) years and five one-year extension options, for a not-to-exceed amount of $26,000 for implementation services, an average annual subscription cost of $135,000 per year for the initial term, plus a 10% contingency during the term, and allowing subscription fee and consultant rate increases of up to 14.83% for the first extension, and 5% per year during any subsequent extension;
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, including extension letters; and 3) Authorize de minimis changes to the Agreement (and related or associated documents) that do not substantially change the terms and conditions of the Agreement, as determined by the City Attorney’s Office.
DISCUSSION:
At its meeting on August 28, 2024, the Public Utilities Board recommended that the City Council approve the Agreement with Power Market Consulting, Inc. for High Voltage Transmission Analytics Software and related services.
Anaheim Public Utilities (APU) operates within the California Independent System Operator’s (CAISO) regional transmission grid to deliver power to Anaheim residents and businesses. The regional transmission grid provides access to resources across the Western United States where APU has joint ownership or agreements for energy resources. APU requires the use of 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.
High Voltage Transmission Analytics Software and Related Services Agreement September 10, 2024
The current software services agreement was approved by City Council in October 2018, and a First Amendment was approved in September 2023 to extend the use of the software system for an additional year to allow for a competitive process to take place.
The software has been beneficial in analyzing thousands of transmission pathways to offset approximately $4 million annually in related transmission costs.
A Request for Proposals (RFP) was issued on June 12, 2024. Due to the highly specialized nature of the software, only one (1) proposal was received in response to the RFP and evaluated in accordance with the qualifications-based selection criteria pursuant to City Council Policy No. 4.1. Power Market Consulting, Inc., (PMCI) met the minimum requirements and was deemed as a qualified bidder and demonstrated that it has successfully deployed Congestion Revenue Rights (CRR) validation and analysis software. Other CAISO participants have utilized PMCI’s software, including the City of Riverside, City of Santa Clara, and the San Francisco Public Utilities Commission. APU has utilized PMCI’s software system and services since 2018.
The new software system included in the proposal will consist of cloud-based models versus the current desktop-based system and will provide a variety of transmission network models including data analytics, transactions, market research, scheduling support, and risk management features.
The Agreement with PMCI has an initial term of five (5) years and five one-year extension options, for a not-to-exceed amount of $26,000 for implementation services, an average annual subscription cost of $135,000 per year for the initial term, plus a 10% contingency during the term, and allowing subscription fee and consultant rate increases of up to 14.83% for the first extension, and 5% per year during any subsequent extension.
The Agreement supports the 2023-24 Strategic Plan, Goal D – Foster a High-Performing Organization, Strategy 7 – Assess current technology to identify gaps and needs within City operations to better serve the community.
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2024/25 restricted Electric Utility Fund 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. Software Service Agreement between Power Market Consulting, Inc. and the City of Anaheim