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: DECEMBER 9, 2025
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AGREEMENT WITH ASCEND ANALYTICS LLC FOR ENERGY
RESOURCE PORTFOLIO PRODUCTION COST MODELING
SOFTWARE
ATTACHMENT (Y/N): YES ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve a Master Services Agreement with Ascend Analytics LLC (Ascend) for energy resource portfolio production cost modeling software (Agreement), with an initial term of five years and up to five one-year optional extensions, at a not-to-exceed cost of $956,005 for the initial term and an annual not-to-exceed cost of $182,209 for the first extension with an annual 4% escalator for remaining extensions, plus a 15% contingency for as-needed extra services; and
2. Authorize the Public Utilities General Manager, or designee, on behalf of Anaheim, to execute the Agreement and all related or implementing documents, including cost- neutral amendments, assignments, and documents contemplated by the Agreement, and to take all actions necessary or advisable to implement and administer the Agreement.
DISCUSSION:
At its meeting on November 19, 2025, the Public Utilities Board recommended that the City Council approve the production cost modeling software service Agreement.
Anaheim Public Utilities (APU) manages a diverse portfolio of power resources that spans across the Western United States. These resources include generation assets, long-term Power Purchase Agreements, short-term energy market purchases and sales, and transmission assets. APU is seeking to replace a software system that has been in place since 2011 with a modern solution to optimize its power resource portfolio, meet a higher percentage of its power supplies with variable renewable energy resources, and to maintain high reliability and affordable customer rates. The production cost modeling system is a simulation software that estimates operational and financial impacts of different scenarios, including changes to types of power resource, asset retirements/additions, power purchase agreements, and load fluctuations for optimal decision making.
Due to increasingly complex regulatory requirements and wholesale energy market, the current production cost modeling system is no longer able to provide the necessary analytical tools required by APU. Notably, the system cannot effectively model modern power system dynamics such as the dispatching of battery energy storage systems (BESS), Agreement with Ascend Analytics LLC for Energy Resource Portfolio Production Cost Modeling Software December 9, 2025
which is a critical gap as APU prepares to integrate a 300 Megawatt (MW) standalone BESS project in 2027.
In May 2025, APU issued a Request for Proposals for production cost modeling software services. Five vendors submitted proposals, and the top two firms were invited for detailed interviews and product demonstrations based on their depth of experience, technical expertise, and record of success on similar software projects. The review process followed Council Policy 4.1 – Selection of Professional Consultants, and based on their comprehensive approach to meeting the scope of work, qualifications, interview results, and reasonable cost proposal, Ascend Analytics LLC (Ascend) is recommended as the highest rated firm.
Firm Rank
Ascend Analytics LLC 1
Energy Exemplar, LLC 2
While Ascend’s proposal was approximately 12% higher in cost than the second proposal, Ascend was ranked highest in all other evaluation criteria and demonstrated their depth of experience, technical capabilities of the software, comprehensive and flexible platform, and ability to integrate BESS. Additionally, Ascend has successfully completed software projects for other similar municipal utilities, including the cities of Riverside, Glendale, Colton, Redding, Vernon, Los Angeles Department of Water and Power, and Imperial Irrigation District.
The Agreement is for an initial term of five years and up to five optional one-year renewals. The initial term will not exceed $956,005, which includes a one-time software setup fee and a 15% contingency for as-needed extra services. The acquisition of this tool will modernize APU’s resource planning process, improve decision-making, and ensure Anaheim remains well positioned to provide affordable, reliable, and sustainable power to its customers.
The Agreement for production cost modeling software supports the Citywide 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 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 Ascend Analytics LLC