REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 2 to an Agreement for Services with Guidehouse, Inc. for Consulting Services for North American Electric Reliability Corporation (NERC) Compliance Support
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
To meet its mission, goals and regulatory needs, the City of Santa Clara's Electric Department, Silicon Valley Power (SVP), requires a variety of specialized services, including North American Electric Reliability Corporation (NERC) Compliance Support currently provided by Guidehouse, Inc.
SVP is required to comply with over 600 NERC Reliability requirements, as approved by the Federal Energy Regulatory Commission (FERC). Every three (3) years, the department undergoes a NERC Compliance audit conducted by the Western Electric Coordinating Council (WECC), the regional entity responsible for compliance enforcement in the Western Interconnection. The most recent WECC Audit was in Spring of 2020 and the next full Audit will be Spring of 2023. In addition to these audits, SVP undergoes a yearly Self-Certification of Compliance with select Standards. The next self-certification is due in February 2021. The NERC Reliability Standards encompass three main areas of electric reliability:
1. Operations
2. Engineering - called Operations and Planning (O & P)
3. Critical Infrastructure Protection (CIP). CIP Standards require SVP to minimize the exposure of cyber security information, such as cybersecurity practices, tools, and logical data.
SVP relies on professional support from industry experts to assist with applying new or revised Standards/Requirements. Services include providing assistance with interpreting the applicability of regulatory requirements to SVP's electric system; drafting internal policies and procedures; assessing and configuring operational technology or program tools; developing appropriate internal controls, reviewing, correctin...
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