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HomeMy WebLinkAbout2020-09-17; Clean Energy Alliance JPA; ; Clean Energy Alliance Award Request for Qualifications # 2020-004 Scheduling Coordinator ServicesClean Energy Alliance JOINT POWERS AUTHORITY Staff Report DATE: September 17, 2020 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 8: Clean Energy Alliance Award Request for Qualifications # 2020-004 Scheduling Coordinator Services RECOMMENDATION: Authorize Interim Chief Executive Officer to execute an agreement with The Energy Authority to provide Scheduling Coordinator and Congestion Revenue Rights Portfolio Management Services, through June 30, 2023, for an annual amount not to exceed $140,400, to be billed monthly at $11,700, plus a one- time fee of $28,700, subject to General Counsel approval. BACKGROUND AND DISCUSSION: At its May 21, 2020 regular meeting the Clean Energy Alliance Board authorized the issuance of a Request for Qualification (RFQ) for Portfolio Management/Energy Advisory and Scheduling Coordinator Services. RFQ 2020-004 was issued on May 26, 2020, with proposals due June 17, 2020. The RFQ separated Portfolio Management/Energy Advisory (Task 1) and Scheduling Coordinator Services (Task 2) into two separate tasks and responders could propose on either or both tasks. The CEA Board awarded the Portfolio Management Services tasks at the August 2020 Board meeting. The scope of work for Task 2— Scheduling Coordinator Services included: • CEA Load Forecasting • Scheduling of load into the CAISO day-ahead market • Validating CAISO statements for load settlements • Minimizing and managing real-time load imbalance exposure • Managing Congestion Revenue Rights portfolio and bidding into the CRR auctions • Scheduling of future CEA owned renewable generation projects • Posting of CAISO collateral obligations. CEA received four responses for the Task 2 scope of work: • Direct Energy • Pilot Power • The Energy Authority • Zglobal, Inc. The proposals were reviewed by a committee made up of Jason Haber, City of Carlsbad, Cathy DeFalco, California Choice Energy Authority and Barbara Boswell, Interim Chief Executive Officer. Sept. 17, 2020 Item 1*8 Page 1 of 2 September 17, 2020 Award Scheduling Coordinator Page 2 of 2 The responses were evaluated based on four categories: • Background and experience: Demonstrated experience performing the scope of work; • Management, personnel and qualifications: Qualifications of personnel, familiarity with CCA requirements and issues; • Approach to performing scope of work: Approach demonstrated ability to perform tasks and meet critical deadlines; Project costs: Fees were realistic for services being performed. A short list of firms to be interviewed was developed based on the results of the RFQ evaluations. Firms invited to interview were: Direct Energy, The Energy Authority and ZGlobal. The same committee members participated in the interviews. Fees proposed by the three short listed firms are summarized below: FIRM NOT TO EXCEED AMOUNT NOTES Direct Energy $15,000/month beginning May 2021 for Scheduling Coordinator services plus 20% of Congestion Revenue Rights revenues realized Included a guarantee of positive new revenues related to CRR portfolio management The Energy Authority $11,700/month beginning May 2021 plus one-time fee of $28,700 ZGlobal $7,970/month beginning May 2021 Base fee did not include posting of CAISO collateral obligations. Posting of up to $500,000 would be additional $2,084/month Based on the results of the selection process, The Energy Authority was selected as the most qualified and cost effective proposal. FISCAL IMPACT Fees will be charged at $11,700 per month, beginning May 2021, with a one-time payment of $28,700 due after program launch. The fees are included approved CEA FY 20/21 budget as well as in the future year pro forma expenses. ATTACHMENTS: None Sept. 17,2020 Item #8 Page 2 of 2