CITY COUNCIL AGENDA REPORT
201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: NOVEMBER 4, 2025
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AGREEMENT WITH ENERGY AND ENVIRONMENTAL
ECONOMICS, INC. FOR INTEGRATED RESOURCES PLAN
CONSULTING SERVICES
ATTACHMENT (Y/N): YES ITEM # 12
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve an agreement with Energy and Environmental Economics, Inc. (E3) for integrated resources plan consulting services (Agreement), with a two-year initial term and two one-year optional extensions, at a not-to-exceed cost of $448,130, plus a contingency of up to 10% for as-needed extra services; and
2. Authorize the Public Utilities General Manager, or designees, on behalf of the City of Anaheim (Anaheim), to execute the Agreement and any related documents, including any cost-neutral amendments of the Agreement and any documents contemplated by the Agreement, and to take such necessary or advisable actions to implement, fund, and administer the Agreement.
DISCUSSION:
At its meeting on October 22, 2025, the Public Utilities Board recommended that the City Council approve the Agreement with E3.
The State of California requires electric utilities, including Anaheim Public Utilities (APU), to develop an Integrated Resources Plan (IRP) that serves as a comprehensive, long-term roadmap to outline the optimum strategy to decarbonize APU’s power supply while keeping customer bills affordable.
APU developed its initial IRP in 2018 to outline its strategies to meet renewable resources targets and updated its plan in 2023 to comply with state mandates. Senate Bill (SB) 350 (Clean Energy and Pollution Reduction Act of 2015) and SB 100 (100 Percent Clean Energy Act of 2018) established a renewable energy target of 60% by 2030 and a long-term goal to be carbon-free by 2045. As noted in previous IRPs, APU will divest its last coal resource in 2025, which will significantly reduce carbon emissions.
In preparation for the next update to the IRP, which entails more complex and challenging wholesale energy market conditions, APU seeks the services of a technical consulting firm to proactively evaluate its resource planning options and incorporate the Agreement with Energy and Environmental Economics, Inc. for Integrated Resources Plan Consulting Services November 4, 2025
findings into its long-term planning strategies. The scope of work includes developing an updated IRP based on data analysis, technical evaluations of power procurement scenarios, financial assessments, load forecasting, and recommendations on optimizing the power supply portfolio with the goals of maintaining affordable rates, continuing progress toward its transition to clean energy resources requirements, meeting compliance requirements, and ensuring system reliability.
In April 2025, APU issued a Request for Proposals (RFP) for IRP consulting services.
Ten firms submitted proposals, and the top three firms were short-listed for detailed interviews based on their experience, technical expertise, and record of success on similar projects. The review process followed Council Policy 4.1 – Selection of Professional Consultants, and based on their qualifications, interview results, and cost proposal, E3 is recommended as the highest rated firm.
Firm Rank
Energy and Environmental Economics, Inc. 1
Ascend Analytics, LLC 2
Black and Veatch Corporation 3
E3’s proposal was the second lowest cost and was ranked highest in all other evaluation criteria including depth of experience with state energy policies, technical expertise, and successful completion of IRPs for other similar public utilities including Pasadena Water and Power, Los Angeles Department of Water and Power, Sacramento Municipal Utility District, Silicon Valley Power (Santa Clara), and Silicon Valley Clean Energy.
Following the interviews, reference checks were performed and other utilities validated their satisfaction with E3’s services.
The Agreement is for a two-year initial term and two one-year optional extensions to allow for delivery of the services within APU’s required compliance date of June 2028.
The Agreement will have a not-to-exceed amount of $448,130, plus a contingency of up to 10% for as-needed extra services.
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2025/26 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. Agreement with Energy and Environmental Economics, Inc.