REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Execute a Professional Services Agreement Between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Consulting Services Related to Electric Transmission, Power Generation, and Regulatory and Electric Market Design, for a Total Cost Not-to-Exceed $3,287,500 Over a 5-Year Term, of Which $2,630,000 is the Maximum Contribution from the City of Santa Clara
Report
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), participates in the California energy market, which is subject to frequent regulatory and market changes implemented by the California Independent System Operator (CAISO), the California Energy Commission (CEC), and other agencies that can have significant impact on customer rates. In order to analyze these changes and to make effective and appropriate comments, the Cities of Santa Clara and Palo Alto jointly contract with the Northern California Power Agency (NCPA) to obtain the assistance of industry transmission experts. NCPA contracts with the appropriate industry experts to provide the services. The Cities of Santa Clara and Palo Alto have been contracting out these services for the last 22 years. The current contract is set to expire on December 31, 2025.
Earlier this year, the NCPA sent out a Request for Proposals (RFP) to find the appropriate consultant to provide such services. NCPA received one proposal from Flynn Resources Consultant Inc. (Flynn RCI) who was responsive to the request and demonstrated substantial experience and qualifications to provide the necessary services. These services include monitoring the CAISO and PG&E transmission planning activities, analyzing specific cost impacts, meeting participation, coordinating with other parties, and as necessary, preparing formal position submittals to the CAISO, CEC, and other parties on transmission and grid planning issues.
DISCUSS...
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