SFPUC Commission Meeting
March 10, 2026
Request for Award
PRO.0327
HHWP NERC Compliance and Audit Support
Adam Mazurkiewicz, Division Manager, Hetch Hetchy Water and Power 1 SFPUC’s NERC Compliance Program
Hetch Hetchy Water and Power must comply with mandatory North American Electric Reliability Corporation (NERC) standards
• Standards govern reliability, operations, planning, and cybersecurity • More than 56 Reliability Standards with 254 requirements that apply to 1,862 devices • Standards each require procedures and staff training, and are subject to audits and updates
• New standards continue to be issued
The Compliance Program Requires:
• Specialized knowledge and understanding to interpret NERC Standards • Implementation of standards to new or upgraded assets • Audit preparedness
• Immediate response to NERC inquiries
2 Risks of Non-Compliance
• Significant financial penalties
• Costly mitigation plans
• Legal defense
• Reputational harm
• Potential operational restrictions
3 Hetch Hetchy Water and Power
System Territory
4 Territory covers over 150 linear miles
Scope of As-Needed Professional Services
5 • Maintain and support HHWP’s NERC Compliance Program • Support regulatory compliance obligations with additional entities • Compliance and cybersecurity management
• Training and subject matter expertise
• Compliance process review, documentation, and controls • Audit readiness and on-site support
• Support for new or revised standards
• Asking the Commission to award PRO.0327:
• Not-to-exceed $11,600,000
• Five-year duration
Past Contract Use
• Replaces PRO.0070 (2021-2027)
and CS-246 (2013-2020)
• Contracts provided access to expert
knowledge and understanding of
regulations
• Have provided efficient compliance
program oversight and prevented
regulatory violations
• Supports NERC compliance for all
SFPUC Enterprises
6 Thank you!
Questions?
7 DEPARTMENT
Hetch Hetchy Water and Power
Division of the Water Enterprise
AGENDA NO.
8 MEETING DATE
March 10, 2026
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: Robert Gonzales
Award Contract No. PRO.0327, HHWP NERC Compliance and Audit Support
Summary of
Proposed
Commission Action:
Award Contract No. PRO.0327, HHWP NERC Compliance and Audit Support to Archer Energy Solutions, LLC , in the amount not- to-exceed $11,600,000 and with a duration of five years , to provide as-needed professional services to assist with Hetch Hetchy Water and Power in meeting the obligations to the North American Electric Reliability Corporation (NERC), Western Electricity Coordinating Council, California Independent System Operator, and California Public Utilities Commission regulatory compliance programs, subject to Board of Supervisors approval under Charter Section 9.118.
Background: The San Francisco Public Utilities Commission (SFPUC) Water Enterprise Hetch Hetchy Water and Power Division (HHWP) is an owner, operator, and user of the Bulk Electric System and as such is subject to compliance with the North American El ectric Reliability Corporation ( NERC) Reliability Standards. HHWP is registered with NERC for the following reliability functions:
• Generator Owner
• Generator Operator
• Transmission Owner
• Transmission Operator
• Transmission Planner
HHWP has responsibilities under the NERC Operations and Planning Standards and the Critical Infrastructure Protection Standards. HHWP has been responsible for operating the SFPUC’s NERC Compliance Program for over 16 years.
There are c urrently over 56 Reliability standards with 254 individual requirements which touch 1,862 devices that are applicable to HHWP .
Without the requested services , including process es, procedures , and documentation to demonstrate implementation of the requirements , HHWP will be unable to maintain compliance with NERC Standards.
Violation of these standards either discovered by the Western Electricity Coordinating Council (WECC) or self -reported by HHWP can have Agenda Title: PRO.0327, HHWP NERC Compliance and Audit Support Commission Meeting Date: March 10, 2026
significant financial and reputational implications. Along with monetary penalties ranging from $1,000 to $1,545,000 per violation per day, violations of Reliability Standards impact to the SFPUC may include expenditures on legal defense, development of costly mitigation plans, and impacts on the City and County of San Francisco’s reputation within the industry and with the public.
Scope of Contract: This contract will provide as-needed support to HHWP, enabling the SFPUC to meet NERC/WECC Reliability Standards and California Public Utilities Commission ( CPUC) regulations. Staffing and consulting services for the program include, but are not limited to:
• Compliance Program management;
• Critical Infrastructure Protection standards compliance management; • Readiness assessment;
• Subject Matter Expert training;
• On-site audit/spot check support;
• Compliance process review, documentation, and controls; • Risk management consulting;
• Cyber vulnerability assessments;
• Functional registration review; and,
• Services for regulatory issues associated with the issuance of new or revised NERC or WECC Reliability Standards.
Funding and Costs: Funding Source: Current and future appropriations to Hetch Hetchy Water and Power’s WECC/NERC Programmatic Budget (Project No. 10025712)
Not-to-Exceed Amount: $11,600,000
Schedule: Advertised: May 27, 2025
Estimated Notice-to-Proceed Date: May 2026
Estimated End Date: May 2031
Duration: five years
Evaluation and
Selection Criteria:
The evaluation and selection process consisted of three components:
(1) Written Proposal; (2) Diversity, Equity, and Inclusion (DEI) Submittal; and (3) Social Impact Partnership (SIP) Submittal bonus evaluation. The consultant teams could be awarded up to a maximum of 1,049.75 total points:
995 points for the written proposal, 5 points for the DEI submittal, and 49.75 bonus points for the SIP Submittal.
The technical evaluation panel consisted of individuals knowledgeable on the subject matter and included staff from the SFPUC, Sacramento Municipal Utility District, and Roseville Electric Utility. The panel reviewed and ranked the consultant teams during the written proposal phase . A separate panel of Agenda Title: PRO.0327, HHWP NERC Compliance and Audit Support Commission Meeting Date: March 10, 2026
community benefits experts evaluated the Social Impact Partnership Submittal.
On July 15, 2025, in response to a Request for Proposals (RFP) for Contract No. PRO.0327, the SFPUC received eight proposals. Four proposals were deemed non-responsive for not meeting the minimum qualifications .
Following the evaluation of the four proposals, s taff recommends award to the highest-ranked proposer.
Final Score
Summary:
Written Proposal, DEI submittal, and SIP Submittal:
Firms
Written
Proposal
Score
(995)
DEI
Score
(5)
CMD
Bonus %
SIP
BONUS
Score
(50)
Total Score
1. Archer
Energy
Solutions, LLC
952.50 5 0 49.75 1007.25
2. Guidehouse
Inc. 863.50 0 0 25.30 888.80
3. Ampere
Industrial
Security
778.66 5 0 0 783.66
4. TRC
Solutions, Inc. 718.50 0 0 0 718.50
Note: Scores have been rounded to the second decimal place.
Environmental
Review:
This action does not constitute a project under the California Environmental Quality Act Guidelines Section 15378 because it will not result in a physical change in the environment.
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division waived the Local Business Enterprise (LBE) subcontracting requirement for this contract citing ‘outreach to LBE firms conducted with no qualified responses’ with recommendation the ‘sub- requirement is not suitable’.
Agenda Title: PRO.0327, HHWP NERC Compliance and Audit Support Commission Meeting Date: March 10, 2026
Red – denotes water coverage area
Black – denotes transmission coverage area
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Water Enterprise Hetch Hetchy Water and Power division (HHWP) is an owner, operator, and user of the Bulk Electric System and as such is subject to compliance with the North American Electric Reliability Corporation (NERC) Reliability Standards; and
WHEREAS, It is necessary to procure professional services of qualified consultants to support to HHWP to meet NERC/ Western Electricity Coordinating Council (WECC) Reliability Standards and California Public Utilities Commission (CPUC) regulations; and
WHEREAS, Violation of these standards either discovered by WECC or self -reported by HHWP can have significant financial and reputational implications; and
WHEREAS, The estimated cost of services is not to exceed $11,600,000; and
WHEREAS, On May 27, 2025, t he SFPUC advertised a Request for Proposals for HHWP’s NERC/WECC Compliance Program; and
WHEREAS, On July 15, 2025, the SFPUC received eight proposals; and
WHEREAS, Services are anticipated to begin in May 2026 and end in May 2031 and the duration of this contract is five years; and
WHEREAS, SFPUC and Contract Monitoring Division (CMD) staff, upon review of the proposal scores, determined that Archer Energy Solutions, LLC is the highest ranked firm based on the established scoring criteria; and
WHEREAS, The CMD waived the Local Business Enterprise (LBE) subconsultant participation requirement for this contract; and
WHEREAS, Funds for Contract No. PRO.0327, HHWP NERC Compliance and Audit Support, will be available from current and future appropriations to Hetch Hetchy Water and Power Project 10025712 WECC/NERC Compliance; and
WHEREAS, This action does not constitute a project under the California Environmental Quality Act Guidelines S ection 15378 because it will not result in a physical change in the environment; now, therefore, be it,
RESOLVED, That this Commission hereby awards Contract No. PRO.0327, HHWP NERC Compliance and Audit Support , to Archer Energy Solutions, LLC in the amount not-to- exceed $11,600,000, and with a duration of five years, subject to the Board of Supervisors approval pursuant to Charter Section 9.118; and, be it,
FURTHER RESOLVED, That this Commission authorizes the General Manager to approve amendments or modifications to the contract that the General Manager determines, in consultation with the City Attorney, are in the best interest of the City, are necessary or advisable to effectuate the purposes and intent of this resolution, and are in compliance with all applicable laws, including the City Charter.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of March 10, 2026.
Director of Commission Affairs
San Francisco Public Utilities Commission