REPORT TO COUNCIL
SUBJECT
Title
Action on a License Agreement for Silicon Valley Power (SVP) Authorizing the City Manager to:
1. Execute Amendment No. 1 to the current License Agreement with Energy Exemplar, LLC to add third party software used to generate forecast models for timing of power purchases; and
2. Negotiate and execute additional amendments to add or delete services or licenses consistent with the scope of the agreement and allow future rate adjustments not to exceed a fifteen percent (15%) annual increase, subject to appropriation of funds.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
This action amends an existing agreement for a software product currently used by SVP. Therefore, competitive bidding is not required.
In order to produce a 10-year resource forecast model, and support the production and forecast of the operations budget, the City of Santa Clara's Electric Department, Silicon Valley Power (SVP) uses PLEXOS which is a licensed software distributed by Energy Exemplar, LLC. In addition to SVP's need for assembling a production cost forecast for budgetary purposes, SVP has various needs to generate production cost simulations in order to participate in: California Independent System Operator (CAISO) stakeholder initiatives, California Public Utility Commission (CPUC) proceedings, Integrated Resource Planning and reporting to regulatory agencies, and/or internal sensitivity studies when market conditions for fuel, hydro year conditions, carbon allowance value, or other key marginal costs of SVP's supply portfolio change significantly from previous modeled expectations. These study simulations require the use of various industry mathematical standards that may change and require Energy Exemplar to update the application.
This agreement renews annually, and the City may terminate the agreement for convenience at any time upon thirty days' notice. PLEXOS software is widely us...
Click here for full text