REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to an Agreement for Services with Aspen Environmental Group to Provide As-Needed Consultant Services for Electric Rate and Fee Analysis for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On October 13, 2020, the City Council approved an Agreement for Services (Agreement) with Aspen Environmental Group (Aspen) to provide as-needed electric fee and rate analysis services. The Agreement resulted from a competitive formal procurement process published on the City's e-procurement system.
Aspen's services include applying rate schedules and developing fees in complex configurations, typically involving service to Silicon Valley Power's (SVP) largest customers; resolving unique billing and meter issues; monitoring market developments that may affect SVP's cost, rate structure or rate levels; and preparing rate-related analyses, reports, and presentations.
The Agreement with Aspen has a maximum compensation of $450,000, an initial five-year term effective through October 31, 2025, plus five one-year options to extend the term through October 31, 2030.
DISCUSSION
Since the Agreement was executed with Aspen, Aspen has supported SVP by helping to conduct important analysis on SVP's electric rates and fees. On account of recent extraordinary increased costs for fuel, materials, equipment, and labor, SVP has leaned more heavily on Aspen to analyze their impact on SVP's rate and fee structure. Aspen also performs analysis and maintenance of meter data collected from the field for billing reports that identify anomalies prior to bill issuance. In addition, Aspen conducts rate/cost analyses and analytics on data to support long-range and short-range budgetary planning. Given the various unique factors impacting electric power costs and rates, SVP relies on Aspen's expertise to ensure that rate revenues are adequate to fund its costs o...
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