10/10/2023 Item #9
City Council
CATA CLARA CARE Item #9: Agreement with
CITY OF Hyundai Electric for the
•D0D000 Purchase of up to 12
Transformers
1852
RTC 23-122
THE MISSION CIT
Oct 10, 2023
* SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Agenda
• SVP Receiving Stations Upgrades
• Request for Proposal (RFP) - High Voltage Transformers • Transformer Capacity and Reliability Increase
• Purchase Costs (Base & Optional Units)
• Staff Recommendation
POST MEETING MATERIAL
1 10/10/2023 Item #9
- SILICON
VALLEY
POWER.
CIT OF SANTA CLARA
SVP Receiving Station Upgrades
• Northern Receiving Station (NRS): B
NORTHERN
• Relocation of two existing PG&E 115 kV overhead connections and OA RECEIVING CAISO meters, additional transformers, upgrade of existing STATION main/transfer bus configurations, circuit breakers, disconnect (NRS) switches and system protection improvements.
• Mation Colege
• 30% design is underway
101 NORTH SANTA
SLAHA
• Early procurement to meet project schedules
SCOTT
• Scott and Kifer Receiving Stations (SRS & KRS): *RECEIVING
STATION AA
• Replaces end of life infrastructure and increases capacity (SRS) @KIFER • Full Rebuild - New 60kV/115kV Switchgear, control rooms, RECEIVING transformers, circuit breakers, disconnecting earthing switches, cable STATION sealing, relocation of 6okV and 115kV transmission lines associated (KRS) with each substation.
• Value engineering underway Santa
Clara
• Early procurement to meet project schedules
- SILICON
VALLEY
POWER,
CITY OF SANTA CLARA
Request for Proposal (RFP)
Purchasing Department led the RFP Process for /EVALUATION HYUNDAI SIEMENS JSHP TOSHIBA
CRITERIA TBEA
selection based on "Best Value" Proposal Content/
Structure / Technical 10 6 4 5
- 62 Companies viewed the RFP, seven proposals Info (10%) anufacture
were received, out of which 2 were deemed rformance Reo 8 5 3 5 (25%)
incomplete. Manufacturer's
QA/QC Procedures 9 5 3 5
- Proposals were ranked using the following metrics (20%) Delivery Schedule 6 6 8 9 8
• 25% - Manufacturer's Performance Record
• 25% - Delivery Schedule Cumulative Score 6.55 4.85 4 4.75 • 20% - Costs 1% of Based on
undal at 100% 92% 74% 61% 73%
• 20% - Manufacturer's QA/QC Procedures 10 8 NA
st (20 NIA NA
• 10% - Proposal Content/ Structure/ Technical Info TOTAL MULATI
- Recommendation Wrathall & Krusi (Hyundai) ORE/RANKII 8.55 7.6 NA NIA NIA (based out of 10
• Submitted the best value proposal comprised of initial (total points) proposal, oral presentation, and best and final offer.
- Evaluation panel consisted of five SVP staff members
and technical consultant support
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10/10/2023 Item #9
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Capacity and Reliability Increase
• Transformer Replacement Project Achieves Two Goals:
• Replaces near end-of-life equipment and with larger capacity transformers • Enhances reliability and mitigates economic risk with options to purchase additional transformers for future load growth.
• Scott and Kifer Receiving Stations - Over 50 years old (end of life) • Full rebuild and replacement of transformers
• Increasing capacity from 372 to 672 MVA with ability to expand. • Northern Receiving Station - Constructed in 2004
• Additional 230kV/115kV transformer increases capacity from 420 to 980MVA • Replacing 115kV/6okv transformers increasing capacity from 372 to 672 MVA • Accommodates new CAISO HVDC transmission line and new SVP 115 kV transmission line
• Enhanced reliability with two energized spare transformers (one 230kV/115kv and one 115kV/6okV transformer). This mitigates economic risk of a loss of a 230kV/115kV transformer estimated at $16 million/year of avoided higher Transmission Access Charges
5 SILICON
VALLEY
POWER.
Capacity and Reliability Increase
• Transformer Replacement Project Achieves Two Goals:
• Replaces near end-of-life equipment and with larger capacity transformers • Enhances reliability and mitigates economic risk with options to purchase additional transformers for future load growth.
• Scott and Kifer Receiving Stations - Over 50 years old (end of life) • Full rebuild and replacement of transformers
• Increasing capacity by more than double with ability to expand. • Northern Receiving Station - Constructed in 2004
• Additional 230kV/115kV transformer which more than doubles capacity Replacing 115kV/6okv transformers which more than doubles capacity • Accommodates new CAISO HVDC transmission line and new SVP 115 kV transmission line
• Enhanced reliability with two energized spare transformers (one 230kV/115kv and one 115kV/6okV transformer). This mitigates economic risk of a loss of a 230kV/115kV transformer estimated at $16 million/year of avoided higher Transmission Access Charges
6 3
10/10/2023 Item #9
* SILICON
> VALLEY
POWER.
CITY OF SANTA CLARA
Transformer Purchase Costs
• Initial purchase of Nine Transformers $60.6 million
• Optional purchase of Three Transformer for future
growth at KRS/SRS and further design/analysis at NRS
($20.8 million)
• SVP will seek Council approval for the issuance of Debt Financing in 2024 - $81 Million
- Costs incurred before debt is issued will be covered, per - If Debt Financing is not approved, an alternative fundin nechanism would need to be identified
7 MA SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Staff Recommendations
• Authorize the City Manager to negotiate and execute an agreement with Wrathall & Krusi (Hyundai)
- For delivery of up to twelve (12) High Voltage Transformers including delivery, installation, and related services not to exceed $81,392,908
• Authorize City Manager to negotiate and execute amendments to the Agreement - For an additional amount not to exceed $8,100,000 for design changes and unanticipated issues that may arise during production or commissioning of the transformers. - For minor changes such as extending the term including any schedule delays so that the full warranty term is included in the final agreement or otherwise needed to initiate the purchase. 8 8
4 10/10/2023 Item #9
City Council
SITA CLARION
Item #9: Agreement with
Hyundai Electric for the
Purchase of up to 12
Transformers
1852
RTC 23-122
THE MISSION CIT
Oct 10, 2023
9