REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to execute Amendment No. 2 to an Agreement with Claris Strategy Inc. to Provide Additional Electric Utility Security Consulting Services for Silicon Valley Power, for a Total Not-to-Exceed Compensation of $489,088
Report
BACKGROUND
In 2014, California Senate Bill 699 was adopted in response to the 2013 Metcalf Substation attack. The bill directed the California Public Utilities Commission (CPUC) to establish regulations to enhance the physical security of electrical distribution systems.
In January 2019, the CPUC issued Decision 19-01-018 establishing physical security requirements for California investor-owned utilities in California. The decision also purported to extend its reach to publicly owned utilities (POUs) such as Silicon Valley Power (SVP). Although the CPUC Decision's application to POUs is an overextension of CPUC jurisdiction and regulatory power, SVP and other publicly owned utilities have good reason to voluntarily participate in the program in that it will assist SVP and other utilities to keep up with industry standards with regard to physical security.
Under this decision, electric utilities are required to develop a comprehensive physical security plan for its electric systems, have the plan reviewed by a third party, and submit the plan to the CPUC for review and acceptance by July 10, 2021. SVP completed and submitted its Utility Security Plan in 2021, and the plan was subsequently reviewed and accepted by the CPUC.
The CPUC also requires utilities to review and update their physical security plans every five years. Accordingly, SVP's next update is due to the CPUC by August 10, 2026.
To assist with its participation in the program, SVP initiated a competitive solicitation to retain a qualified consultant to perform a Threat and Vulnerability Assessment (TVA), prepare standard security designs for future substations, and update SVP's 2021 Utility Security Plan....
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