The URL can be used to link to this page

Home My WebLink About2020-05-21; Clean Energy Alliance JPA; ; Authorization of Request for Qualifications for Portfolio Management/Energy Advisory and Scheduling Coordinator ServicesClean Energy Alliance JOINT POWERS AUTHORITY Staff Report DATE: May 21, 2020 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 6: Authorization of Request for Qualifications for Portfolio Management/Energy Advisory and Scheduling Coordinator Services RECOMMENDATION: Clean Energy Alliance Board authorize the Interim Chief Executive Officer to issue a Request for Qualifications for Portfolio Management/Energy Advisory and Scheduling Coordinator Services, pursuant to the Scope of Work in Attachment A, and return to Board for award July 16, 2020. BACKGROUND AND DISCUSSION: As a community choice aggregator, Clean Energy Alliance (CEA) requires the services of a variety of technical consultants related to the business of procuring and providing energy services. CEA has contracted with Pacific Energy Advisors to provide a limited scope of services related to the initial forecasting and procurement activities, including those related to Resource Adequacy and Long-Term Renewable energy procurement. As CEA moves to the next phase of planning for and preparing to serve customers in May 2021, it is now appropriate to issue a Request for Qualifications (RFQ) for the next phase of services needed. Those services include energy portfolio management, procurement of conventional, short-term renewable and carbon free energy, as well as scheduling coordinator services including management of CEA's congestion revenue rights program. Attachment A includes the specific scope of work for the RFQ process. The RFQ will be written to provide flexibility for the Board to select one consultant to provide the full required scope, or to select more than one consultant should that be in in the best interest of CEA. FISCAL IMPACT Funding for the Portfolio Management/Energy Advisory and Scheduling Coordinator Services will be included in the proposed FY 20/21 budget to be before the Board for approval June 18, 2020. ATTACHMENTS: Attachment A -Scope of Work, Portfolio Management/Energy Advisory and Scheduling Coordinator Services May 21, 2020 Item #6 Page 1 of 3 Attachment A Scope of Work May 21, 2020 RFQ Power Services Page 2 of 3 Portfolio Management/Energy Advisory and Scheduling Coordinator Services The Scope of Work as outlined below is intended to provide a framework for the Request for Qualifications responses. Respondents are encouraged to provide expanded scope of work/additional tasks or services as deemed beneficial to Clean Energy Alliance. TASK 1: PORTFOLIO MANAGEMENT AND ENERGY ADVISORY SERVICES 1.1 Portfolio Management Strategy Develop and implement a Clean Energy Alliance (CEA) portfolio management strategy that includes initial power portfolio recommendations that align with CEA's stated goals, carbon reduction targets and power product options as identified by the CEA Board. 1.2 Energy Risk Management Develop and participate in an energy risk management process, as well as produce, maintain, and publish reports tracking CEA compliance with its adopted Energy Risk Management Policy, portfolio exposure, market risk and credit exposure. Selected respondent will be expected to identify and present risk-mitigation strategies to CEA's risk management team and leadership. Particular attention will be paid to proposers offering expertise and strategies to manage the risk to rate competitiveness posed by the Power Charge Indifference Adjustment (PCIA). Successful respondent may assist with drafting, implementing, complying and reporting on compliance with an Energy Risk Management Policy. Reports and presentation to the CEA Board and committees will be required. 1.3 Power Procurement Respondents will be responsible for preparing and issuing power supply RFPs for conventional, Resource Adequacy, renewable energy and carbon free energy, and negotiating power contracts on CEA's behalf. If more than one vendor is selected, vendors are expected to coordinate to ensure CEA portfolio needs are met, meeting all required regulatory and legislative mandates, CAISO rules and practices and CEA program goals and objectives. 1.4 Policy and Program Development If requested, assist CEA staff and management with various operational and procurement related policies including energy risk management policies. Possible program support could include local renewable energy development, energy storage initiatives, community solar & storage program, and energy efficiency program development. May 21, 2020 Item #6 Page 2 of 3 1.5 Other Services May 21, 2020 RFQ Power Services Page 3 of 3 Responders may add other services not listed above related to portfolio management and energy advisory services that is deemed beneficial to the success of CEA. TASK 2: CAISO SCHEDULING COORDINATION, SETTLEMENT AND CONGESTION REVENUE RIGHTS PORTFOLIO MANAGEMENT 2.1 Scheduling Coordinator (SC) Services Include short-term load forecasting (i.e. week-ahead, day-ahead, and hour-ahead) scheduling of load into the CAISO day-ahead market, validating CAISO statements for load settlements, minimizing and managing real-time imbalance exposure, accepting Inter-SC Trades, and managing Congestion Revenue Rights (CRR) portfolio and bidding into the various CRR auctions. 2.2 Future Generation/Compliance Filings and Other Obligations CEA does not currently own nor has any generating resources under its operational control and therefor is not requesting generation scheduling services as part of this RFQ, however, all respondents must possess the capability and experience to schedule future renewable generation projects that may be under contract with CEA in the future. Additionally, SCs will be required to submit regulatory compliance filings, such as monthly RA compliance reports to the CAISO on behalf of CEA. It is expected that the SC will be responsible for satisfying the CAISO's various settlement and financial requirements and obligations (i.e. collateral obligations). 2.3 CAISO Certification Respondents offering to provide SC services must be certified by the CAISO as a scheduling coordinator or must name a certified scheduling coordinator that wiH be contractually responsible for scheduling loads and resources throughout the proposed delivery term. If respondent is not a certified CAISO scheduling coordinator and will be naming a third-party to serve in this capacity, CEA requires such respondents to submit proposals that are co-signed by the anticipated scheduling coordinator, verifying the intended business relationship and the anticipated scope of services to be provided. 2.4 Methodologies and IT Respondents offering to provide SC services must describe the methodologies that will be used for load forecasting and CRR portfolio management as well as all the information systems that will be utilized in providing SC and settlement services to CEA and identification of those to which CEA will have access. Responses must describe the process and methods to be used for validating CAISO charges and credits that will be passed through to CEA. 2.5 Other Services Respondents may include other services that they deem beneficial to CEA's success. May 21, 2020 Item #6 Page 3 of 3 Item 6: Clean Energy Alliance Request for Qualifications Portfolio Management/Energy Advisory and Scheduling Coordinator Services Barbara Boswell, Interim Chief Executive Officer 5/21/20 CLEAN ENERGY ALLIANCE 32 Item 6: Clean Energy Alliance Request for Qualifications Portfolio Management/Energy Advisory and Scheduling Coordinator Services • Recommendation 0 Authorize Interim Chief Executive Officer to issue request for qualifications for Portfolio Management/Energy Advisory and Scheduling Coordinator Service and return to Board for award July 16, 2020 5/21/20 CLEAN ENERGY ALLIANCE 33 Item 6: Request for Qualifications Portfolio Management/Energy Advisory and Scheduling Coordinator Services • CEA requires additional technical services related to procurement of energy, portfolio management and scheduling coordinator services for May 2021 launch • Existing agreement with Pacific Energy Advisors scope limited to: 0 Development of Pro Forma 0 April 2020 Year-Ahead Resource Adequacy and related procurement 0 Initial Long-Term Renewable Procurement 0 Initial Renewable Portfolio Standards Procurement Plan 0 Integrated Resource Plan 0 Rate Setting Activities 5/21/20 CLEAN ENERGY ALLIANCE 34 Item 6: Request for Qualifications Portfolio Management/Energy Advisory and Scheduling Coordinator Services • Scheduling coordinator 0 Short-term forecasting 0 Scheduling CEA load into CAISO day-ahead market 0 Validating CAISO statements for load settlements 0 Managing Congestion Revenue Rights portfolio 0 Bidding into various CRR auctions • Capability to schedule future CEA owned/controlled generating facilities 5/21/20 CLEAN ENERGY ALLIANCE 37 Item 6: Request for Qualifications Portfolio Management/Energy Advisory and Scheduling Coordinator Services Board Discussion 5/21/20 CLEAN ENERGY ALLIANCE 39