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WATER ENERGY L I F f 23 W& RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: November 16, 2012 ITEM NO: 11 SUBJECT: INCREASE ANNUAL PURCHASE ORDER FOR DEMINERALIZED WATER SERVICES AT RIVERSIDE ENERGY RESOURCE CENTER-PURCHASE ORDER NO. 930932 ISSUE: That the Board of Public Utilities consider increasing the annual Purchase Order No.130932 issued to General Electric(GE)Mobile Water Inc.from$500,000 to$800,000 for water treatment services at Riverside Energy Resource Center(RERC). RECOMMENDATION: That the Board of Public Utilities approve an increase to Purchase Order No. 130932 issued to GE Mobile Water Inc. in the amount of $300,000 for mobile water treatment services at Riverside Energy Resource Center. BACKGROUND: RERC Units 3 and 4 were fully commissioned in June 2011 doubling the Plant's capacity to 200 megawatts (MW)of power production. During operations, deminera[ized(ultrapure)water is used to cool the turbines to enhance equipment efficiency, increase power output and comply with air quality emissions regulations. Water usage is directly proportionate to the run hours of the units. Historical budgets for demineralized water services have been based on prior years expenditures combined with anticipated run profiles for the units during the planned budget year. In the current fiscal year,$500,000 was budgeted for demineralized water services at RERC. The extended outage at the San Onofre Nuclear Generating Station combined with the above normal temperatures and humidity experienced for an extended period this summer has caused all four units at RERC to be dispatched almost daily since July. Total operating hours this summer reached 1,740 hours, more than triple the 490 hours RERC operated in the summer of 2011. In 2010,a Request for Proposal was issued for water treatment services and GE Mobile Water Services Inc. provided the best pricing with optimum service delivery schedules to meet the RERC facility needs. It is anticipated that the $300,000 change order will provide sufficient funding to supply RERC with demineralized water services for the balance of the fiscal year. FISCAL IMPACT: The total requested change order is $300,000 bringing the total purchase order amount to $800,000. Sufficient funds are available in the RERC Maintenance-Generating Plant Account No. 6120130-424131.