Item 15
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 15
____________________________________________________________________________________ TO: Board of Directors
FROM: Gordon Samuel, Assistant General Manager & Director of Power Services SUBJECT: Ratify services agreement with First Principles Advisory, LLC for Integrated Resource Planning Portfolio Modeling
DATE: July 14, 2022
RECOMMENDATION
Ratify signed agreement with First Principles Advisory for Integrated Resource Planning (IRP) portfolio modeling services for an amount not to exceed $33,750 for a term July 1, 2022 expiring December 1, 2022.
BACKGROUND
VCE was required by the California Public Utilities Commission (CPUC) to prepare an IRP for the supply of energy in the period from 2020 to 2030. The objective of the IRP is to provide guidance for VCEA’s Board, executive management, and the public regarding the expected power supply cost and the resources needed for meeting electric demand in the 2020-2030 period. VCE submitted VCE’s first IRP and associated Action Plan to the CPUC on August 1, 2018. The IRP process calls for an update every two years with the update originally due May 1, 2020; however, due to the COVID-19 pandemic, the CPUC extended the due date twice with a final due date of September 1, 2020. VCE submitted their update to the CPUC on September 1, 2020. The next two year update of the IRP is due to the CPUC on November 1, 2022.
Historically, SMUD has assisted VCE by performing portfolio modeling to be included in VCE’s two year IRP update with the assistance of VCE’s regulatory legal counsel Keyes & Fox who finalizes and submits the update to the CPUC. Assistance elsewhere was needed to prepare portfolio modeling. As a result, VCE advertised a Request for Proposal for IRP portfolio modeling services on May 5, 2022 with a due date of May 27, 2022. Proposals were received and negotiations with First Principles Advisory to perform the work occurred. After review by VCE’s general legal counsel Richards, Watson, & Gershon, Executive Officer Mitch Sears signed the agreement attached.
NEXT STEPS
The scope of work is to take place over the next five (5) months with periodic updates being provided to both the Board and the Community Advisory Committee (CAC). The final report is anticipated to be available and presented in late quarter 3 or early quarter 4 of 2022. 2 CONCLUSION
Staff is recommending that the Board ratify via resolution agreement with First Principles Advisory for Integrated Resource Planning (IRP) portfolio modeling services for an amount not to exceed $33,750 for a term July 1, 2022 expiring December 1, 2022.
ATTACHMENTS
1. RFP for consulting services
2. Agreement between VCE and First Principles Advisory, LLC
3. Resolution 2022-XXX
VALLEY CLEAN ENERGY RFP NO. 2022IRP
RFP 2022IRP 1
Valley Clean Energy Alliance
604 2nd Street, Davis, California 95616
Phone: (530) 446-2750
REQUEST FOR PROPOSALS
FOR
2022 Integrated Resource Plan Portfolio Modeling
PROPOSALS ARE DUE:
Friday, May 27, 2022 BY 4:00 P.M. (Pacific Daylight Time) Proposals must be e-mailed in PDF form to [email protected] with any preliminary redlines to VCE Sample Agreement
Valley Clean Energy Alliance is a Joint Powers Authority consisting of the Cities of Davis, Woodland, and Winters and the County of Yolo.
VALLEY CLEAN ENERGY RFP NO. 2022IRP
RFP 2022IRP 2
Scope of Services
2022 IRP Modeling
I. INTRODUCTION
Valley Clean Energy (VCE) is seeking a qualified consultant (Contractor) to provide system modeling and technical support that will be used in the 2022 Integrated Resource Plan (IRP) process at the California Public Utilities Commission (CPUC).
The successful proposal submittal must demonstrate that the Contractor has the appropriate professional and technical background to fulfill the scope of work. The contractor must have expertise in electric system modeling and a proven ability to update, maintain, and run such models.
The chief use of this production cost modeling is in the context of the CPUC’s IRP proceeding, although VCE reserves the right to request modeling for other proceedings where modeling is relevant, such as Resource Adequacy (RA).
II. BACKGROUND
2.1 VCE is a joint powers authority providing a state-authorized Community Choice Energy (CCE) program. Participating VCE governments include the City of Davis, the City of Woodland, the City of Winters and the unincorporated areas of Yolo County. PG&E continues to deliver the electricity procured by VCE and to perform billing, metering, and other electric distribution utility functions and services. Customers within the participating jurisdictions have the choice not to participate in the VCE program.
2.2 Since VCE started serving load in June 2018, VCE has added resources under long term contracts and is gradually building up a portfolio of short and long term assets in line with its vision and the demand of its customers. To date, VCE has relied mainly on market purchases of energy, RA, and Renewable Energy Credits (RECs) in order to serve its electric demand and meet regulatory requirements with respect to RA and renewable energy. VCE has since contracted for solar, solar plus energy storage, standalone energy storage, and demand response resources.
III. DETAILED SCOPE OF WORK
The scope of work for this project includes the following:
• Compile and maintain electric system model database from public sources where possible, including:
o Generator list and specifications, including heat rates, outages, retirement dates, etc.
o Transmission constraints
o Load Data
o Weather Data
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• Provide and update written documentation of model assumptions and logic as requested
• Integrate CPUC’s Preferred System Portfolios (PSPs) into system model once they become available on or around June 15, 2022, along with other modeling requirements known as Inputs & Assumptions (I&A) such as Effective Load Carrying Capacity (ELCC) values for different resources
• Integrate VCE’s load from the CEC’s 2021 IEPR forecast (Mid Baseline – [Additional Achievable Energy Efficiency] AAEE Scenario 3, [Additional Achievable Fuel Substitution] AAFS Scenario 3) Form 1.1c as modified by VCE (if applicable) into system model • Integrate VCE’s existing and planned portfolio into system model • Integrate Inputs & Assumptions to be determined by Astrape, E3, and CPUC Staff • Run system model to develop reliability assessment, decarbonization metrics, and cost analysis
o Compare PSPs to VCE’s existing and planned resources portfolio o Perform sensitivities and scenario analysis to identify possible emissions or cost savings
• Provide relevant data cleaning and analysis scripts to VCE staff as requested for review • Develop charts and graphs summarizing outputs to be used in the IRP Narrative as requested by VCE staff for use by VCE’s other consultants who will be writing the Narrative
• Coordinate and Timely Provide necessary graphs, charts, and data points with VCE staff and its other consultants for the purpose of completing all required IRP compliance files such as the Narrative, Resource Data Template, and Clean System Power Calculator • By July 11, 2022, Enter Data into Templates by filling out the Clean System Power Calculator and the Resource Data Template with data on RA, energy, load, criteria pollutants, energy contract information, and all other information from the model and from VCE staff to meet the compliance requirements of the PSPs and any requested alternative VCE portfolio (if applicable) and provide the templates to VCE staff and its other consultants for review, editing, and Narrative development • Develop Outline for the Reliability Section of the Narrative based on model outputs • Ensure Timely Preparation of all requirements for the November 1, 2022 due date IV. FEE SCHEDULE
Contractor shall provide a not to exceed lump sum price. If VCE modifies the scope and additional study work needs to be performed, Contractor shall provide a change order price before initiating the work.
V. PROPOSAL REQUIREMENTS
In order to be considered, all proposals must be submitted by the deadlines listed in the RFP schedule included herein. When completing the Contractor’s RFP response, Contractor must include the following detail:
• Background and experience of all staff involved in modeling, including:
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o Name, position, and short biography of employee(s) responsible for providing this service
o Hourly rate
o Modeling / quantitative analysis expertise
• Description of the modeling tools used, including:
o Scope (CAISO/California/WECC)
o Time horizon (full year, multiple years, etc.).
o Granularity (daily, hourly, sub-hourly)
o Runtime (hours per model run, including min/max ranges depending on number of scenarios and any performance improvements that can be realized through running multiple scenarios in parallel)
o Any data or cloud services (AWS, etc.) used for storing data or improving performance.
o List and detailed description of model outputs (cost, emissions, reliability metrics, etc.), providing samples where relevant
o Granularity of outputs (generator level / balancing authority level) o System requirements for the model (Mac / Windows, which OS, RAM, etc.) o A description of how the model stores data for, and handles analysis of, multiple scenarios—i.e., how a user can run different scenarios without having to manually change the database every time
• Reports or presentations summarizing model results
• Experience with CPUC proceedings, especially an understanding of CPUC-jurisdictional load-serving entity IRP requirements, familiarity with the RESOLVE model, and the Clean System Power tool and Resource Data Template developed by E3 • The Contractor should affirm whether the model’s database is already “in-model,” or would have to be purchased separately, and provide relevant pricing data for access and maintenance
• Describe how the Contractor will adhere to anti-trust and collusion laws while providing this service to VCE
• Describe how the Contractor will avoid conflicts of interest with other power providers and/or regulatory bodies while providing this service to VCE • The Contractor should provide a project management plan with proposed dates and milestones
• Any preliminary redlines to the VCE Sample Contract should be provided with RFP response
VI. PROPOSAL EVALUATION
VCE will evaluate all proposals based on the following criteria:
• Experience with production cost models
• Staff qualifications
• Model specs
• Fee Schedule
• Project management plan with proposed dates and milestones VALLEY CLEAN ENERGY RFP NO. 2022IRP
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• Compliance with VCE Sample Contract
VCE may, or may not, negotiate contract terms with selected Contractor(s) prior to award, and expressly reserves the right to negotiate with several Contractors simultaneously and, thereafter, to award a contract to the Contractor(s) offering the most favorable terms.
Proposals submitted, therefore, should contain the Contractor’s most favorable terms and conditions, as the selection and tentative award may be made without further discussion with any Contractor.
VCE reserves the right to accept or reject any and all submitted proposals, to waive minor irregularities, modify services, and to request additional information or revisions to offers, and to negotiate with any or all Contractors at any stage of the evaluation.
VCE will not make a final contract award unless it is approved by its Board of Directors.
VII. CONTRACTOR MINIMUM QUALIFICATIONS
The proposals submitted in response to this RFP shall be evaluated for award based on the following criteria and weighting.
Item Criteria Description Weighting
Experience and Qualifications
1. Experience of firm
2. Resumes of staff designated to support this scope
3. CCA/Public Power/Energy experience
40%
Compliance with VCE Sample Contract 20%
Price 40%
Total 100%
7.1 Proposal Submittal Requirements
1. Ten pages maximum submitted electronically. Executive Summary with brief description of company including Firm or individual name and contact information, including e‐mail and website addresses, year organized, principals with the firm, types of work performed, number of employees.
2. Resumes of key staff that would work on VCE projects.
3. Information on any previous experience or services provided, including CCA experience.
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4. Other factors or special considerations you feel would influence the selection of your proposal.
5. List of references and contact information.
6. Preliminary redlines to VCE Sample Contract (if any).
7.2 Miscellaneous
1. Additional Information
Scope of Services may be revised upon mutual agreement between the Contractor and VCE.
2. Ownership of Work Products
All notes, documents, and final products in all native formats (e.g., Word, Excel, PowerPoint, databases, handwritten notes) produced in the performance of this agreement shall be the property of VCE and shall not be shared with other entities without permission from VCE staff.
VIII. RFP Timeline
8.4 Instructions to Proposers
1. Time and Manner of Submission
The Proposal shall be submitted electronically to and received by VCE's office no later than 4:00 p.m. PDT on Friday, May 27, 2022.
Submit to:
Gordon Samuel, Assistant General Manager
Email: [email protected]
Use the subject line: “IRP Modeling Consulting Services” • Each proposal shall include the full business legal name, DBA, and address and shall be signed by an authorized official of the company. The name of each person signing the proposal shall be typed or printed below the signature. • All proposals submitted become the property of VCE.
2. Explanations to Proposers
All requests, questions or other communications regarding this RFP shall be made in writing to VCE via email no later than 4:00 p.m. PDT on Friday, May 20, 2022. Address all communications to Gordon Samuel ([email protected]). To ensure that written requests are received and answered in a timely manner, email correspondence is required. An FAQ response document will be posted on VCE’s RFP Website at https://valleycleanenergy.org/solicitations-rfp the week responses are due.
VCE will not be bound by any oral interpretation of the Request for Proposal, which may be made by any of its representatives or employees, unless such interpretations are subsequently issued in the form of an addendum to this Request for Proposal.
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3. Withdrawal or Modification of Proposals
Proposals may be modified or withdrawn only by an electronic request received by VCE prior to the Request for Proposal due date.
4. Revisions and Supplements
Addenda: If it becomes necessary to revise or supplement any part of this Request for Proposal an addendum will be provided.
5. Proposal Evaluation and Selection Process
The proposals submitted shall be evaluated for award based on the criteria described in the “Proposal Requirements” section of this RFP.
VCE may request additional information from any or all Proposers after the initial evaluation of the proposals to clarify terms and conditions.
Based on VCE's review of the proposals received, a “short listed” group of Proposers may be selected. The “short listed’ firms may be required to make verbal presentations of their qualification to VCE. If a presentation is determined to be required, the presentation will be considered in the overall technical rating.
The contract will be awarded to the best-qualified Proposer, after price and other factors have been considered, provided that the proposal is reasonable and is in the best interests of VCE to accept it.
The right is reserved, as the interest of VCE may require, to reject any or all proposals and to waive any irregularity in the proposals received.
Within fourteen (14) calendar days after notice of award, the successful Proposer shall deliver to VCE the required insurance certificates as per section 3.10 of the sample contract and the signed copies of the contract. The contract forms will be forwarded to the Proposer with the award notification.
6. Duration of Contract
This contract shall be for one year, subject to approval by VCE's Board of Directors of the corresponding annual budget, unless otherwise mutually agreed upon in writing.
The Budget is subject to the approval of VCE's Board of Directors.
7. Qualifications of Proposers
VCE expressly reserves the right to reject any proposal if it determines that the business and technical organization, financial and other resources, or experience of the Proposer, compared to the work proposed justifies such rejection.
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8. Proposal Preparation Costs
The costs of developing proposals are entirely the responsibility of the Proposer and shall not be charged in any manner to VCE.
9. Conflicts
If conflicts exist between the contract and the other elements of this Request for Proposal, the contract prevails. If conflict exists within the contract itself, the Terms and Conditions govern, followed by Scope of Services. If conflict exists between the contract and applicable Federal or State law, rule, regulation, order, or code; the law, rule, regulation, order, or code shall control. Varying levels of control between the Terms and Conditions, drawings and documents, laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement(s) shall control.
10. Manner and Time of Payment
Billing shall be submitted monthly with a detailed, itemized billing on a monthly basis in order to avoid any confusion of services provided.
11. Subcontractors
The Proposers must describe in their proposals the areas that they anticipate subcontracting to specialty firms. Identify the firms and describe how Proposer will manage these subcontracts.
Contractor will pay subcontractors in a timely manner.
Nothing contained in the Contract shall create any contractual relation between any subcontractor and VCE.
12. Notice Related to Proprietary/Confidential Data
Proposers are advised that the California Public Records Act (the “Act”, Government Code §§ 6250 et seq.) provides that any person may inspect or be provided a copy of any identifiable public record or document that is not exempted from disclosure by the express provisions of the Act. Each Proposer shall clearly identify any information within its submission that it intends to ask VCE to withhold as exempt under the Act.
Any information contained in a Proposer’s submission which the Proposer believes qualifies for exemption from public disclosure as "proprietary” or “confidential” must be identified as such at the time of first submission of the Proposer’s response to this RFP.
A failure to identify information contained in a Proposer’s submission to this RFP as "proprietary” or “confidential” shall constitute a waiver of Proposer’s right to object to the release of such information upon request under the Act. VCE favors full and open disclosure of all such records. VCE will not expend public funds defending claims for access to, inspection of, or to be provided copies of any such records.
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13. Contract
VCE’s standard contract (Attachment A – sample contract) is included in the Sample Contract section of this Request for Proposal. VCE may reject proposals that contain exceptions to the Terms and Conditions included in the sample contract.
5.5 Performance Requirements
Performance Requirements/Acceptance Criteria
a. All Milestones shall be completed in accordance with approved schedule. b. Deliverable items must be complete, legible, comprehensible, and satisfy all requirements set forth in the scope of work.
5.6 Reference Documents
VCE will provide reference documents to aid in the preparation of RFP responses after execution of the non-disclosure agreement (NDA) – a sample NDA is attached as Attachment B.
5.7 Resource and Submittal Requirements
Contractor shall provide all resources required to complete the work described herein, including but not limited to skills, services, supervision, tools, documents, information, labor, materials, equipment, computing capability, transportation, and any other necessary item or expense to fulfill the work requirements.
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ATTACHMENT A - SAMPLE CONTRACT
A SAMPLE CONTRACT IS ATTACHED HERETO.
SAMPLE CONTRACT INTENTIONALLY REMOVED
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ATTACHMENT B – SAMPLE NON-DISCLOSURE AGREEMENT
A SAMPLE NON-DISCLOSURE AGREEMENT IS ATTACHED HERETO.
SAMPLE NON-DISCLOSURE AGREEMENT
INTENTIONALLY REMOVED
July 6, 2022
Item 15
1 VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2022- _______
A RESOLUTION OF THE BOARD OF DIRECTORS OF VALLEY CLEAN ENERGY ALLIANCE
RATIFYING AN AGREEMENT WITH FIRST PRINCIPLES ADVISORY, LLC FOR INTEGRATED
RESOURCE PLANNING PORTFOLIO MODELING SERVICES
WHEREAS, the Valley Clean Energy Alliance (“VCE”) was formed as a community choice aggregation agency (“CCA”) on November 16, 2016, under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Yolo, and the Cities of Davis and Woodland, to reduce greenhouse gas emissions, provide electricity, carry out programs to reduce energy consumption, develop local jobs in renewable energy, and promote energy security and rate stability in all of the member jurisdictions. The City of Winters, located in Yolo County, was added as a member of VCE and a party to the JPA in December of 2019; and, WHEREAS, on May 5, 2022, a Request for Proposal (RFP) was released by VCE seeking proposals for Integrated Resource Planning (IRP) portfolio modeling services to assist in the two year update of the IRP to be submitted to the California Public Utilities Commission (CPUC); and, WHEREAS, VCE staff reviewed and evaluated the RFP responses; and WHEREAS, staff recommended to VCE’s Executive Officer that VCE enter into an agreement with First Principles Advisory, LLC (FPA) to prepare portfolio modeling services; and, WHEREAS, the Executive Officer signed the agreement with FPA effective July 1, 2022.
NOW, THEREFORE, the Board of Directors of the Valley Clean Energy Alliance resolves as follows:
1. Ratifies VCE entering into a services agreement with First Principles Advisory, LLC to prepare portfolio modeling services for VCE’s two year update of the Integrated Resource Plan, for an amount not to exceed $33,750 effective July 1, 2022 terminating December 1, 2022.
PASSED, APPROVED, AND ADOPTED, at a regular meeting of the Valley Clean Energy Alliance, held on the ___ day of _____________ 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Jesse Loren, VCE Chair
___________________________________
Alisa M. Lembke, VCE Board Secretary
Attachment A: First Principles Advisory, LLC agreement
Item 15
2 ATTACHMENT A
INTEGRATED RESOURCE PLAN PORTFOLIO MODELING SERVICES AGREEMENT
WITH FIRST PRINCIPLES ADVISORY, LLC