City Council Agenda Report
Meeting Date: June 18, 2024
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Management Analyst
Subject
Licensing Agreement with Ascend Analytics LLC
Recommendation
Approve and authorize the City Administrator to execute the SmartBidder Licensing Agreement with Ascend Analytics LLC (Ascend), in substantially the same form as submitted, to provide the licensing battery optimization software in an amount not-to-exceed $186,396 for a three-year term.
Background
Vernon Public Utilities (VPU) operates an electric distribution system and generation facilities that reside within the California Independent System Operator (CAISO) control area and are connected to CAISO through Southern California Edison’s 220-66 kV Laguna Bell Substation.
VPU is a municipal electric utility engaged in the generation, distribution, and participation in CAISO’s wholesale energy markets under the second amended and restated Metered Subsystem Agreement (MSSA), and its distribution system is fully embedded within the CAISO operating Balancing Area.
VPU recently entered into two Power Sales Agreements for the Daggett Solar Power 2 and Sapphire Solar Power Projects. Both these projects are a co-located solar photovoltaic (PV) and battery energy storage systems. VPU staff anticipates executing additional renewable agreements in the future. As such, VPU needs a battery optimization software system that will be used as a decision support tool to assist staff in the optimized scheduling of the battery storage component of these resources. The optimization software will review and produce solutions that maximize revenues in all CAISO markets available to battery energy storage systems.
In accordance with Vernon Municipal Code (VMCCM) Section 3.32.080, on May 95, 2023, staff issued a Request for Proposals (RFP) for Battery Energy Storage System Optimization Software.
The RFP was advertised on the City’s Planet Bids platform. The scope of services included licensing battery optimization software that will be used to guide staff in the optimized scheduling of the battery storage resources.
Proposal packages were received from five firms by the June 9, 2023 deadline. A qualified panel thoroughly examined the proposals received based on the professional qualifications (40%), cost and fees to the City (30%), demonstrated competence (20%) and overall quality and responsiveness to the RFP (10%).
Due to unexpected circumstances, the resource management staff decided to temporarily hold on reviewing the proposals and awarding a contract. The City Attorney’s Office provided guidance and found no issues with delaying the review process. However, on February 1, 2024, VPU staff notified vendors that the review process was about to start and asked them to submit any changes to their proposals by February 20, 2024. Vendors did not make any substantive changes to their submitted proposals.
While all five firms met the minimum criteria, the proposal from Ascend Analytics LLC (Ascend) demonstrated the best expertise, experience, and comprehensive approach to the services requested in the scope of work detailed in the RFP. In addition to Ascend being the lowest bidder, its SmartBidder software delivers the most up to the minute information to maximize revenues in the CAISO Day-Ahead (DA) and Real-Time (RT) Markets and provides the ability to submit the bids directly to the CAISO markets. SmartBidder’s advanced AI forecasts and bid optimization agents capture both average and extreme events, leading to better revenue realization.
Furthermore, Ascend’s current Public Power customers in the CAISO include Burbank Water and Power, City of Redding, City of Riverside, the Los Angeles Department of Water and Power, among others, supports the reliability and professional qualities that will aid the City in maximizing the use of its renewable resources. In summary, Ascend’s SmartBidder software is a powerful tool for optimizing energy storage and renewable projects, providing actionable insights, and maximizing value to the battery storage component of these renewable resources.
Staff recommends that the City Council approve the SmartBidder Licensing Agreement with Ascend to provide the license battery optimization software for a total amount not-to-exceed $186,396 over the term of three years.
The proposed Licensing Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $186,396 for the three-year term. Sufficient funds are available in the Fiscal Year 2024-25 Electric Fund Budget, Resource Management Department, Professional Services – Other, Account No. 055-050-590-529215 for fiscal year 2024-25 and sufficient funds will be budgeted in subsequent years.
Attachments
1. Licensing Agreement with Ascend Analytics LLC