AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT Power Enterprise
AGENDA NO.
9 MEETING DATE
May 14, 2024
Professional Services Amend: Regular Calendar
Project Manager: Cheryl Taylor
Approve Amendment No. 4 to Contract No. CS -247(R), Customer and Administrative Services for Community Choice Aggregation Program
Summary of
Proposed
Commission
Action:
Approve Amendment No. 4 to Contract No. CS -247(R), Customer and Administrative Services for Community Choice Aggregation Program , with Calpine Energy Solutions , LLC, for continued meter data management, billing, and customer care support for the CleanPowerSF program , increasing the contract amount by $2,500,000 and extending the contract’s duration by six months, for a total not-to-exceed amount of $35,145,425 and total duration of nine years and six months , subject to approval by the Board of Supervisors under Charter Section 9.118.
Background: On August 11, 2015, per Resolution No. 15 -0175, this Commission awarded Contract No. CS -247(R), Customer and Administrative Services for Community Choice Aggregation Program, to Noble Americas Energy Solutions, LLC.
On January 24, 2017, by Resolution No. 17- 0013, this Commission approved the assignment and assumption of Contract No. CS -247(R) from Noble Americas Energy Solutions , LLC to Calpine Energy Solutions , LLC (Calpine).
Calpine provides critical back-office se rvices supporting CleanPowerSF, including meter data management, billing, and customer care. Th is contract includes a requirement for Calpine to prepare and deliver a six -month service disentanglement plan to Clean PowerSF and a possible alternate service provider, in the event of (1) contract expiration or termination or (2) CleanPowerSF’s election to obtain any part of the contract from other third parties or self-provide the services.
Staff are conducting a new solicitation for these services, which is expected to result in a new three- year contract by October 2024. This amendment for a six-month contract extension is meant to cover the time period for a possible transition of these services to another provider , should it be necessary. The a mendment will ensure continuity of essential business services through CleanPowerSF’s approximately 385,000 customers.
Execute Contract: Approve Amendment No.4 to Contract No. CS-247[R], Customer and Administrative Services for Community Choice Aggregation Program
Commission Meeting Date: May 14, 2024
Scope of
Contract:
The work under this contract consists of:
• Managing Customer Enrollment: this task consists of providing all services necessary to administer the enrollment , including default enrollment of new customer accounts, and the departure of customers from CleanPowerSF, including procedures for exchanging and processing of Community Choice Aggregation Service Requests with PG&E.
• Data and Billing Administration: this task consists of providing all services necessary to manage customer data, including issuing monthly bills through PG&E’s billing process and tracking customer payments via Electronic Data Interchange protocols with PG&E.
• Delivering contractor transitional services: this task consists of supporting CleanPowerSF’s transition of contractual services for data management and billing and includes developing a transition plan by the effective date of the transition, meeting with CleanPowerSF and a new service provider(s), if applicable, to ensure a smooth and timely transition, delivering historical PG&E and EDI files, delivering historical CAISO SQMD submissions, and delivering histor ical usage and invoices.
Amendments to
the Contract:
Amendment No. 1 : On May 22, 2018, by to Resolution No. 18 -0090, this Commission approved Amendment No. 1, increasing the contract by $14,030,000, and extending the duration by three years, for a total not -to- exceed contract amount of $19,630,000 and a total contract dura tion of six years. With Amendment No. 1, SFPUC staff negotiated a pricing reduction resulting in over $2 million in savings over the three-year term.
On July 17, 2018, by Resolution No. 249- 18, the San Francisco Board of Supervisors approved Amendment No. 1, increasing the contract amount by $13,169,225 and extending the term by three years for a total not -to-exceed amount of $18,769,225 and a total duration of six years. The reason the dollar amount approved by the Board of Supervisors for Amendment No. 1 was less than the amount approved by the Commission was due to an accounting change allowing for carryover of funds from the first term.
Amendment No. 2 : On August 1, 2019, by the delegated authority of Resolution No.09-0017, the General Manager executed Amendment No. 2 to allow the SFPUC access to email marketing and campaign automation functionality on a trial basis at no additional cost (no change in contract amount or duration). As a potential new customer care service, Calpine provided email market ing automation functionality to allow CleanPowerSF the opportunity to assess its capabilities and usefulness.
Execute Contract: Approve Amendment No.4 to Contract No. CS-247[R], Customer and Administrative Services for Community Choice Aggregation Program
Commission Meeting Date: May 14, 2024
Amendment No. 3 : On June 8, 2021 , by Resolution No. 21 -0092, this Commission approved Amendment No. 3, increas ing the contract by $13,876,200 a nd extending the duration by three years , for a total not -to- exceed contract amount of $32,645,425 and a total contract duration of nine years. The Amendment modified the scope of work to add automated email marketing capabilities to the customer relations hip management system provided by Calpine.
On July 30, 2021, by Resolution 362- 21, the Board of Supervisors approved Amendment No. 3.
Proposed Amendment No. 4: Staff recommends Commission authorization to increase the contract by $2,500,000 and extend th e duration by six months, to cover the time period for a possible transition of these services to another provider, should it be necessary, in order to ensure continuity of essential business services through CleanPowerSF’s approximately 385,000 customers, for a total not -to-exceed contract amount of $35,145,425 and a total duration of nine years and six months.
Budget & Costs: Funding: This contract is funded entirely from the CleanPowerSF Operating Fund. Contract pricing is linked to active CleanPowerSF customer meters and is assessed on an active meter per month basis.
Original Not-To-Exceed Amount: $5,600,000
Amendment No. 1 Amount: $13,169,225
Amendment No. 2 Amount: $0
Amendment No. 3 Amount: $13,876,200
Proposed Amendment No. 4 Amount: $2,500,000
Total Not-To-Exceed Amount: $35,145,425
Schedule: Original Duration: three years
Amendment No. 1 Duration: three years
Amendment No. 2 Duration: zero years
Amendment No. 3 Duration: three years
Proposed Amendment No 4 Duration: six months
Total Duration: nine years and six months
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On August 11, 2015, per Resolution No. 15- 0175, this Commission awarded Contract No. CS -247(R), Customer and Administrative Services for Community Choice Aggregation Program, to Noble Americas Energy Solutions , LLC, and authorized the General Man ager of the San Francisco Public Utilities Commission (SFPUC) to negotiate and execute a professional services contract in the amount of $5,600,000 and with a term of three years, to provide meter data management, billing, and customer care services for CleanPowerSF, a community choice aggregation program; and
WHEREAS, On January 24, 2017, by Resolution No. 17- 0013, this Commission approved the assignment and assumption of Contract No. CS -247[R] from Noble Americas Energy Solutions , LLC to Calpine Energy S olutions, LLC (hereinafter “Calpine”); and
WHEREAS, On May 22, 2018, by Resolution No. 18- 0090, this Commission approved Amendment No. 1, increasing the contract amount by $14,030,000 for a total not-to-exceed amount of $19,630,000, and extending the term of the contract by three years for a total contract duration of six years; and
WHEREAS, On July 17, 2018, by its Resolution No. 249- 18, the San Francisco Board of Supervisors approved Amendment No. 1, increasing the contract amount by $13,169,225 for a total not -to-exceed amount of $18,769,225, and extending the term of the contract by three years for a total contract duration of six years. The reason the dollar amount approved by the Board of Supervisors for Amendment No. 1 was less than the amount approved by the Commission was due to an accounting change allowing for carryover of funds from the first term; and
WHEREAS, On August 1, 2019, under the delegated authority of Resolution No.09-0017, the General Manager executed Amendment No. 2 to the Contract to provide the SFPUC the use of ClickDimensions’ email marketing and campaign automation services on a trial basis, with no change to the contract amount or duration; and WHEREAS, On June 8, 2021, by Resolution No. 21- 0092, this Commission approved Amendment No. 3, increasing the contract by $13,876,200 and extending the duration by three years, and modifying the modified the scope of work to add automated email marketing capabilitie s to the customer relationship management system provided by Calpine, for a total not -to-exceed contract amount of $32,645,425 and a total contract duration of nine years; and
WHEREAS, On July 30, 2021, by Resolution 362-21, the Board of Supervisors approved Amendment 3 to increase the contract amount by $13,876,200, extend the term
of the contract by three years for continued support of the CleanPowerSF program, and expand the use of ClickDimensions’ services at no additional markup up to the CleanPowerSF program; and
WHEREAS, Calpine is currently performing services that are critical and specialized services needed to continue providing meter data management, billing, and customer care services to CleanPowerSF customers; and
WHEREAS, Staff recommends this Commission approve Amendment No. 4, increasing the contract amount by $2,500,000 and extending the duration by six months, to ensure the continuity of these essential business services as Staff co mplete a new competitive solicitation for meter data management, billing and customer care services , which is expected to result in a new three -year contract by October 2024. This Amendment is intended to cover the time required for a possible transition of these services to another provider, should it be necessary, and expand the use of ClickDimensions’ services at no additional markup to the CleanPowerSF program , for a total not-to-exceed contract amount of $35,145,425, and a total contract duration of nine years and six months; and
WHEREAS, Funds for this contract are available from the CleanPowerSF Operating Fund; now, therefore, be it
RESOLVED, That this Commission hereby approves Amendment No. 4 to Contract No. CS-247(R), Customer and Administrative Services for Community Choice Aggregation Program, with Calpine Energy Solutions , LLC, for continued meter data management, billing, and customer care support of the CleanPowerSF program , increasing the contract amount by $2,500,000 and extending the contract duration by six months, for a total not -to-exceed contract amount of $35,145,425, and a total contract duration of nine years and six months, subject to approval by the Board of Supe rvisors under Charter Section 9.118.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 14, 2024
Secretary, Public Utilities Commission