Report to City Council
ID: 26-0103 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer
AGENDA DATE: March 17, 2026
TITLE: SECOND AMENDMENT TO THE ENERGY
SCHEDULING AND TRADING SERVICES AGREEMENT
WITH TENASKA POWER SERVICES (REPORT OF:
PUBLIC WORKS) (DISTRICT: ALL DISTRICTS)
TITLE SUMMARY: Authorization And Approval Of The Second Amendment To The Energy Scheduling And Trading Services Agreement
With Tenaska Power Services Company, Amending The
Term For An Additional Two Years
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Approve the Second Amendment to the Energy Scheduling and Trading Services Agreement with Tenaska Power Services, Company;
2. Authorize the City Manager to execute the Amendment to the Energy Scheduling and Trading Services Agreement with Tenaska Power Services, Company; and
3. Authorize the City Manager, or their designee, to execute any subsequent amendments to the Energy Scheduling and Trading Services Agreement with Tenaska Power Services, Co mpany, in accordance with the terms of the agreement, and within the budg etary amounts previously approved by the City Council as part of the adopted and/or amended budget process, subject to the approval of the City Attorney.
ID: 26-0103 Page 2
SUMMARY
This report recommends approval of a Second Amendment to the Energy Scheduling and Trading Services Agreement with Tenaska Power Services Co., amending the term for an additional two years.
DISCUSSION
To balance the energy needs of its customers, electric utilities buy and sell energy through the California Ind ependent System Operator (CAISO), the nonprofit public benefit corporation responsible for managing the state’s electric transmission system and administering the wholesale power market. Participation in the wholesale market requires certification as a Sch eduling Coordinator by CAISO or the retention of a firm that is CAISO-certified. A Scheduling Coordinator represents market participants, including generators and load-serving entities such as utilities, and is responsible for daily energy scheduling, trading, and the tracking and settlement of transactions. Certification requires demonstration of creditworthiness, installation of required validation and communications software, and completion of CAISO market systems training and testing.
On May 3, 2016, th e City Council approved a five -year agreement with Tenaska Power Services Co. for energy scheduling, trading, and settlement services for Moreno Valley Utility. The agreement was granted its first extension on November 17, 2020, for an additional five -year term. Tenaska was selected through a competitive procurement process and submitted the lowest-cost proposal among the three responses received at the time of contract execution.
The current agreement is set to expire, and a second amendment is proposed to extend the term for an additional two years. The extension is recommended for the following reasons: (1) continued volatility and evolving conditions in the wholesale energy and capacity markets, which could make transition to another Scheduling Coordinat or operationally complex and potentially more costly; (2) Tenaska’s consistently strong performance, with no CAISO compliance or settlement issues and reliable support to the Utility; (3) limited staff resources currently available to manage a transition d ue to competing operational and strategic priorities; and (4) Tenaska’s established familiarity with the Utility’s load profile, resource portfolio, and planned system expansion, which supports continuity, operational efficiency, and informed market participation.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
Staff recommends this alternative as it will maintain existing scheduling services with no interruption in service to the utility and its customers.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative, due to limited staffing capacity which could potentially result in higher costs to the City for scheduling, settlement, and risk mitigation services.
ID: 26-0103 Page 3
FISCAL IMPACT
There is no fiscal impact associated with the second extension of the Agreement. The costs related to energy scheduling and trading services are already incorporated into the annual purchased power budget adopted by the City Council.
NOTIFICATION
Publication of the Agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Daniel Carlos Melissa Walker, P.E.
Power Supply Manager Public Works Director/City Engineer Concurred By:
Jason Niccoli, P.E.
Electric Utility Division Manager
CITY COUNCIL GOALS
Advocacy: Develop cooperative intergovernmental relationships and be a forceful advocate of City policies, objectives, and goals to appropriate ext ernal governments, agencies and corporations.
Positive Environment: Create a positive environment for the development of Moreno Valley's future.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ID: 26-0103 Page 4
Report Approval Details
Document Title: STAFFREPORT_PW_MVU_SECOND AMEND_TENASKA POWER SERVICES.docx
Attachments: - Tenaska Second Amendment Draft.pdf
Final Approval Date: Mar 9, 2026
This report and all of its attachments were approved and signed as outlined below:
Melissa Walker
Sean Kelleher
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez