Consent Item 12
Consent Item 12
To: Ava Community Energy Authority
From: Gabriel Head, CAISO Markets Manager
Subject: Adopting a Resolution of the Board of Directors of Ava Community Energy Authority Authorizing the CEO to Negotiate and Execute a Second Amendment to the Master Agreement- Software as a Service with Ascend Analytics
Date: March 19, 2025
__________________________________________________________________ Recommendation
Adopt a Resolution authorizing the Chief Executive Officer to negotiate and execute a Second Amendment to the Master Agreement- Software as a Service with Ascend Analytics (“Ascend”) for storage and renewable bid optimization software services dated June 22, 2023, which was amended March 21, 2024 (collectively, the “Agreement”) for a 2-year subscription term, with a cost not-to-exceed $338,100, together with the option to extend the subscription term for up to one, additional 1-year term. The amendment adds an additional $24,480 for the remainder of the 2-year term for a new not-to-exceed cost for the Agreement of $362,580.
Financial Impact
The addition of this storage resource to our portfolio optimized with Ascend triggers a discounted service fee, so on a per-megawatt-managed basis, Ava’s cost to optimize storage resources in the CAISO is going down, even with the added $24,480 compensation.
Analysis and Context
1. Assessment, Review and Selection Process
Consent Item 12
Following a round of interviews, staff members participating in the evaluation voted for Ascend .
The following advantages were cited:
• Overall, the Ascend platform provides for a user-friendly experience and allows for uploading and downloading of operational data with ease. The interface is entirely web-based and allows users to access from anywhere they have internet access. • Ascend platform allows for easy scenario analysis to determine the most appropriate bidding and scheduling strategy, each being unique to a particular solar plus storage resource.
• Ascend optimizes bids for both the solar resource and the storage resource, creating a paid bid set that manages the resource efficiently.
• Ascend platform shows detailed financial breakdowns for each hour of each day for Ava staff to dive into and see where revenue streams are generated. • Ascend platform contains all necessary information but does not contain extras for the sake of inclusion. This allows for focused presentation of information to allow Ava staff to digest the intricacies of operations.
2. Proposed Subscription Services
Below are the key features for Ascend’s proposed services:
• Forecasting – Forecast market conditions to optimize both day-ahead and real-time. • Automated Bids Submissions – Manage asset revenue through 25 automated and optimized bid submissions per day (1 Day-Ahead and 24 Real-Time) with an adaptive real-time agent continuously adjusting real-time bids.
• Plant Dispatch Optimization – optimize plant dispatch of traditional resources, such as natural gas, biomass, biogas and geothermal.
• State of Charge Management – Balance battery state of charge against current and future revenue opportunities.
• Bidding Strategies – Manage multiple bidding strategies tune to asset-specific goals, risk appetite and desired revenue stack, through review of strategy performance. • Risk – Ensure risk from market commitments remains within user defined acceptability parameters.
Ava staff will retain unlimited user licenses to cover members in Power Resources and NCPA scheduling teams.
Adding a resource to Ascend’s optimization platform results in operational efficiencies, by reducing points of failure and tightening coordination in responding to market conditions.
Attachments
A. Resolution Authorizing the CEO to Negotiate and Execute a First Amendment to the Software as a Service Master Agreement with Ascend Analytics B. Consulting Services Agreement Amendment Template
Attachment Consent Item 12A
RESOLUTION NO. R-2025-XX
A RESOLUTION OF THE BOARD OF DIRECTORS
OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CEO TO
NEGOTIATE AND EXECUTE A SECOND AMENDMENT TO THE MASTER
AGREEMENT- SOFTWARE AS A SERVICE WITH ASCEND ANALYTICS
WHEREAS Ava Community Energy Authority (“Ava”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, under the Joint Exercise of Powers Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The Cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of Ava and parties to the Joint Powers Agreement (“JPA”) in March of 2020. The City of Stockton was added as a member to Ava in September of 2022. The City of Lathrop was added as a member to Ava in October of 2023. San Joaquin County was added as a member to Ava in July 2024. On October 24, 2023, Ava legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception.
WHEREAS there is a need for Ava to add an additional standalone storage asset, Kola Energy Storage II, to the existing Storage and Renewable Bid Optimization software platform for the Power Resources objectives;
WHEREAS Ava staff has conducted a thorough assessment of Ava’s requirements for a Storage and Renewable Bid Optimization platform; and WHEREAS after interviewing various vendors, including Ascend Analytics (“Ascend”), the services offered by Ascend were determined to be the best fit to meet the current and future needs of Ava;
WHEREAS, Ava and Ascend previously entered into a Master Agreement-Software as a Service for storage and renewable bid optimization software services dated June 22, 2023, which was amended March 21, 2024 (collectively, the “Agreement”) and such Agreement may be amended to include the additional services;
NOW, THEREFORE, THE BOARD OF DIRECTORS OF AVA COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Board of Directors hereby authorizes the CEO to negotiate and execute, subject to approval of General Counsel, a Second Amendment to the Agreement, for a Attachment Consent Item 12A
2-year subscription term, at a cost not-to-exceed $338,100, together with the option to extend the subscription term for up to one, additional 1-year term.
ADOPTED AND APPROVED this 19th day of March 2025
Jack Balch, Chair
ATTEST:
Adrian Bankhead, Clerk of the Board
1 First Amendment to Consulting Services Agreement by and Between Ava Community Energy Authority and [Vendor]
This [Number] Amendment to the Agreement with [Vendor] for Consulting Services (“[Number] Amendment”) is made this [day] day of [month], [202X], by and between the Ava Community Energy Authority, a Joint Powers Agency formed under the laws of the State of California (“Ava”) and [Legal Name of Vendor] (“[Vendor]”), for the purposes of adding additional compensation, adding additional services to the scope, extending the termination date, and updating the hourly rates of compensation.
Recitals
A. Ava and [Vendor] entered into that certain Consulting Services Agreement dated [date] (“Agreement”), wherein [Vendor] agreed to provide [service] to Ava, with compensation not to exceed $[amount].
B. Ava and [Vendor] entered into that certain [Number] Amendment to the Consulting Services Agreement on [date] to add additional compensation, increasing the not-to-exceed amount by $[amount] for a total amount not to exceed $[amount], to update the scope of services, to extend the term, and to update the hourly rates of compensation.
C. Ava and [Vendor] entered into that certain [Number] Amendment to the Consulting Services Agreement on [date] to add additional compensation, increasing the not-to-exceed amount by $[amount] for a total amount not to exceed $[amount], to update the scope of services, to extend the term, and to update the hourly rates of compensation.
D. Ava and [Vendor] now desire to amend the Agreement to add additional compensation, increasing the not-to-exceed amount by $[amount], to add additional services to the scope of services [to include additional services], to extend the term, and to update the hourly rates of compensation.
E. On October 24, 2023, East Bay Community Energy Authority legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception.
Now therefore, for good and valuable consideration, the amount and sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. All references to East Bay Community Energy (“EBCE”) in the Agreement are hereby amended to Ava Community Energy (“Ava”).
2. Section [#] of the Agreement (“Term”) is amended to extend the term of the Agreement through [new date].
3. Section [#] of the Agreement (“Compensation and Payment”) is amended in part to increase the total compensation of the Agreement by $[amount] for a total amount not to exceed [new amount spelled out] ($[new amount]).
Attachment Consent Item 12B
2 4. Section [#] of the Agreement (“Notices”) is amended in part to include [email protected] as a required additional recipient for Ava.
5. Exhibit A (“Scope of Work”) of the Agreement is replaced in its entirety by Exhibit A, attached hereto.
6. Exhibit B (“Schedule”) of the Agreement is replaced in its entirety by Exhibit B, attached hereto.
7. Exhibit E (“Compensation/Budget”) of the Agreement is replaced in its entirety by Exhibit E, attached hereto.
8. All other terms and conditions in the Agreement not otherwise modified by this [Number] Amendment will remain in full force and effect.
In witness whereof, the Parties have entered this Amendment on the date written above.
Ava Community Energy Authority,
A Joint Powers Authority
[Name]
[Title]
Date: ____________________________
Approved as to form:
Ava General Counsel
[Vendor],
A [Legal form of entity]
[Name]
[Title]
Date: ______________________________
[Name]
[Title]
Date: ______________________________
Attachment Consent Item 12B
A-1
Exhibit A
Scope of Work
[Insert text here]
Attachment Consent Item 12B
B-1
Exhibit B
Schedule
[Insert text here]
Attachment Consent Item 12B
E-1
Exhibit E
Compensation/Budget
[Insert text here]
Attachment Consent Item 12B