PRO.0152 Power Scheduling
Coordination and Related
Support Services
Amendment No. 3
July 22, 2025
Suni Jones
Wholesale/Retail Services Manager,
Power Enterprise
2 The Need for Scheduling Coordinator
Services
• The California Independent System Operator (CAISO) requires a Scheduling Coordinator to transmit electric energy and conduct wholesale electricity transactions.
• The SFPUC is not a CAISO-certified Scheduling Coordinator, therefore the SFPUC must contract with a certified Scheduling Coordinator to utilize the transmission grid.
• This is essential for SFPUC to serve Hetch Hetchy Power and CleanPowerSF customers.
• APX, Inc. is the Scheduling Coordinator for SFPUC Power Enterprise.
3 Power Costs are Invoiced by the CAISO
and Paid by APX on SFPUC’s Behalf
• SFPUC incurs CAISO costs for transmission, electricity and reliability products, and grid management charges.
• The CAISO invoices the SFPUC weekly for these services. • Payments are due to the CAISO within seven days.
• APX makes these payments on the behalf of SFPUC to the CAISO. • These are pass-through charges only.
• APX does not charge SFPUC additional fees for this service. 4 APX Amendments - Justification
Amendment CAISO Pass-
through Costs
Other Changes Justification
First (Bridge)
(2023)
Increase of
$125 M
None Ensured sufficient funding while the more
substantial second amendment went
through the approval process
Second
(2023)
Increase of
$636 M
None Higher-than-expected energy prices due to
supply chain delays, global energy
shortages caused by trade disruptions and
war, and extreme weather
Third
(Requested)
Increase of
$362.6 M
Increase professional
services by $3.1 M;
extend duration by
three years
During these three years, SFPUC will
strengthen internal capacity, refine the
scope and technical requirements, and
prepare a new Request for Offers (RFO) that
will result in a competitive bidder pool
5 APX Contract Summary
CAISO Pass-
through Costs
Professional
Services Costs
Total Duration Total Not-to-exceed
Original $130.5 M $4.2 M Five years $134.7 M
First Amendment
(Bridge)
$255.5 M $4.2 M Five years $259.7 M
Second
Amendment
$891.5 M $4.2 M Five Years $895.7 M
Third Amendment
(Requested)
$1.25 B $7.3 M Eight Years $1.26 B
6 Staff Recommendation
For PRO.0152, Power Scheduling Coordinator Services with APX, Inc.
Authorize the SFPUC General Manager to:
• Increase contract capacity:
• Extend duration by three years
• Add $3.1 M for professional services
• Add $362.6 M for CAISO pass-through charges
• Total not-to-exceed agreement amount of $1.26 B
• Seek approval of Board of Supervisors
Questions?
Thank You
DEPARTMENT
Power Enterprise
AGENDA NO.
9 MEETING DATE
July 22, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract/Project Manager: Suni Jones
Approve Amendment No. 3 to Contract No. PRO.0152, Power Scheduling Coordination and Related Support Services
Summary of Proposed
Commission Action:
Approve Amendment No. 3 to Contract No. PRO.0152, Power Scheduling Coordination and Related Support Services, with APX, Inc., increasing the contract amount by $365,749,222 and extending t he contract duration by three years, for a total not- to-exceed contract amount of $1,261,492,022 and total contract duration of eight years , subject to the Board of Supervisors approval pursuant to Charter Section 9.118. This will ensure continuity of service while the San Francisco Public Utilities Commission strengthens internal capacity and expertise ahead of issuing a new Request for Proposals.
Background: The San Francisco Public Utilities Commission (SFPUC) must transmit electric energy through the transmission system controlled by the California Independent System Operator ( CAISO) and conduct wholesale electricity transactions through the CAISO -operated wholesale market in order to provide service to its Hetch Hetchy Power and CleanPowerSF electric customers. Only entities that have been certified by the CAISO as scheduling coordinators may interact with the CAISO to schedule all power deliveries over the transmission system and to process payments for electricity transactions. The SFPUC is not a CAISO certified scheduling coordinator, and so since 2008 it has contracted with APX, Inc. (APX) to provide this service. The SFPUC has and will continue to evaluate whether we should become our own certified scheduling coordinator, but to date we have determined that contracting out this service is more efficient and thus better value for our ratepayers.
The CAISO transmission charges and wholesale energy market transaction charges are incurred by the SFPUC when submitting day ahead and r eal time interchange schedules and b
ids to the CAISO. The CAISO invoices
the SFPUC weekly for these services and payments are due to the CAISO within seven days. APX as SFPUC’s scheduling coordinator, mak es these payments on behalf of SFPUC to the CAISO. These are pass -through charges and APX does not charge SFPUC additional fees for that service.
On January 11, 2022, by Resolution No. 22-0014, this Commission awarded Contract No. PRO.0152, Power Scheduling Coordination and Agenda Title: PRO.0152 Power Scheduling Coordination and Related Support Services Commission Meeting Date: July 22, 2025
Related Support Services , to APX , for an amount not -to-exceed $136,500,000, $6,000,000 for APX’s professional services and $130,500,000 for CAISO pass -through power related transaction charges , and with a contract duration of five years.
On March 8, 2022, by Resolution No. 79- 22, the Board of Supervisors approved Contract No. PRO.0152, Power Scheduling Coordination and Related Support Services , with APX for an amount not -to-exceed $134,742,800, reducing the not -to-exceed amount payable to APX for professional services to $4,242,800, and leaving the CAISO pass -through power related transaction charges of $130,500,000 unchanged, and with a duration of five years.
In 2021, w holesale energy market prices were significantly higher than expected for market participants in California due to supply chain delays , global energy shortages caused by trade disruptions , war, and extreme winter and summer weather in the United States . SFPUC experien ced significant increases in energy product s and related charges from the CAISO, causing the CAISO pass-through power related transaction charges payments to APX made on our behalf to be much higher than anticipated .
From 2021 to 2022, CleanPowerSF’s CAISO charges increased by 197%, and Hetch Hetchy Power’s by 67%. These price increases necessitated the first two contract amendments.
This proposed amendment will provide continuity of service while the SFPUC strengthens internal capacity and expertise ahead of issuing a new Request for Proposals. Enhancing in-house resources will allow the SFPUC to refine the scope and technical requirements of the solicitation and is expected to result in a more competitive and diverse bidder pool, improving proposal quality, and ultimately deliver better value to the SFPUC. The SFPUC will retain the right to terminate the c ontract at any time during the term of the contract.
Scope of Contract: The contract work location is remote.
The work under the contract consists of:
• Submitting day-ahead and real-time interchange schedules and bids to CAISO;
• Managing communications between CAISO and SFPUC schedulers and operators;
• Managing CAISO settlements and processing payments of CAISO pass-through power related transaction charges;
• Managing access to CAISO systems for meter, outage, settlement, scheduling, and bid/award data;
• Submitting settlement quality meter data to CAISO on behalf of SFPUC; and
• Providing a monthly payment cycle with the scheduling coordinator, Agenda Title: PRO.0152 Power Scheduling Coordination and Related Support Services Commission Meeting Date: July 22, 2025
where the scheduling coordinator manages the daily/weekly cash flows and cash calls.
Amendments to the
Contract:
Amendment No.1 : On January 6, 2023, per Resolution No.22 -0109, the General Manager executed the Amendment No. 1, increasing only the CAISO pass -through power related transaction charges amount by $125,000,000, for a total not -to-exceed contract amount of $259,742,800, with no change to the contract duration. The General Manager approved the contract under the authority delegated by the Board of Supervisors in Administrative Code Section 21.43 for power purchases.
Amendment No.2: On January 24, 2023, by Resolution No. 23- 0025, this Commission approved the Amendment No.2, increasing only increased the amount for CAISO pass -through power related transaction charges amount by $636,000,000, for a total not -to-exceed contract amount of $895,742,800, with no change to the contract duration. On March 7, by Resolution No. 095-23, the Board of Supervisors approved Amendment No. 2.
Proposed Amendment No. 3: Staff recommends Commission approval of Amendment No. 3 to increase the professional services portion of the contact amount by $3,105,000, to increase the CAISO pass-through power related transaction charges by $362,644,222, and extend the contract duration by three years, for a total not -to-exceed contract amount of $1,261,492,022, and a total contract duration of eight years.
Funding and Costs: Funding: Funds to cover the cost will be available from the Hetch Hetchy Power Operating Budget, the CleanPowerSF Operating Budget, and the CleanPowerSF Customer Fund, contingent upon the passage of that fiscal year’s budget by the Board of Supervisors.
Original Not-to-Exceed Amount: $134,742,800
Amendment No. 1 Amount: $125,000,000
Amendment No. 2 Amount: $636,000,000
Proposed Amendment No. 3 Amount: $365,749,222
Total Not-to-Exceed Contract Amount: $1,261,492,022
Schedule: Original Duration: 5 years
Amendment No. 3 Duration: 0 years
Amendment No. 3 Duration: 0 years
Amendment No. 3 Duration: 3 years
Total Duration: 8 years
Agenda Title: PRO.0152 Power Scheduling Coordination and Related Support Services Commission Meeting Date: July 22, 2025
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination in
Contracting
Ordinance:
Pursuant to Chapter 14B of the San Francisco Administrative Code, the Contract Monitoring Division (CMD) Local Business Enterprise (LBE) sub-consulting requirement has been waived for this contract.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) provides service to its Hetch Hetchy Power and CleanPowerSF electric customers by transmitting electric energy through the transmission system controlled by the California Independent System Operator (CAISO). As required by CAISO, the SFPUC conducts wholesale electricity transactions through a CAISO-certified Scheduling Coordinator; and
WHEREAS,
On January 11, 2022, this Commission awarded Contract No. PRO.0152, Power Scheduling Coordination and Related Support Services , to APX Inc. (APX), a CAISO - certified Scheduling Coordinator, in an amount not -to-exceed $136,500,000, $6,000,000 for APX.’s professional services and $130,500,000 for CAISO pass-through power related transaction charges , and with a duration of five years; and
WHEREAS, On March 8, 2022, by Resolution No. 79-22, the Board of Supervisors approved the c ontract with APX for an amount not -to-exceed $ 134,742,800, including $4,242,800 for professional services, and $130,500,000 for the CAISO pass -through power related transaction charges of, and with a duration of five years; and
WHEREAS, On January 6, 2023, per Resolution No. 22-0109, the General Manager executed Amendment No. 1 increas ing only the CAISO pass -through power related transaction charges amount by $125,000,000, to ensure sufficient funding for power costs while a more substantial Amendment No. 2 went through the process for approval by this Commission and the Board of Supervisors, for a total not-to-exceed contract amount of $259,742,800, with no change to the contract duration; and
WHEREAS, On January 24, 2023, by Resolution No. 23-0025, this Commission, approved Amendment No. 2., increasing only the CAISO pass-through power related transaction charges amount by $636,000,000, to allow for payment of the CAISO pass -through power related transaction charges through APX, a CAISO -certified scheduling coordinator, for a total not-to-exceed contract amount of $895,742,800, with no change to the contract duration; and
WHEREAS, On March 1, 2023, by Resolution N o. 095-23, the Board of Supervisors approved Amendment No. 2; and
WHEREAS, Staff recommends that this Commission approve Amendment No. 3 to increase the professional services amount by $3,105,000, and increase the CAISO pass -through power related transaction charges by $362,644,222, and extend the contract duration by three years, for a total not -to-exceed contract amount of $1,261,492,022, and a total contract duration of eight years; and
WHEREAS, Pursuant to Chapter 14B of the San Francisco Administrative Code, the Contract Monitoring Division (CMD) Local Business Enterprise (LBE) sub-consulting requirement has been waived for this contract; and
WHEREAS, Funds to cover the cost will be available from the Hetch Hetchy Power Operating Budget, the CleanPowerSF Operating Budget, and the CleanPowerSF Customer Fund; now, therefore be it
RESOLVED, That this Commission hereby approves Amendment No. 3 to Contract No.
PRO.0152, Power Scheduling Coordination and Related Support Services, with APX, increasing the contract amount by $365,749,222 and extending the contract duration by three years, to maintain continuity of service, for a total not-to-exceed contract amount of $1,261,492,022 and a total contract duration of eight years, s ubject to Board of Supervisors approval under Charter Section 9.118; and be it
FURTHER RESOLVED, That this Commission authorizes the General Manager, in consultation with the City Attorney, to make other necessary, non- material changes in the Third Amendment.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of July 22, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission