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W A T F R E N E R G Y L RIVERSIDE PUBLIC UTILITIES .�W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: AUGUST 13, 2018 ITEM NO: 7 SUBJECT: AWARD REQUEST FOR PROPOSAL NO. 1809 FOR SOFTWARE SERVICES AGREEMENT FOR CALIFORNIA INDEPENDENT SYSTEM OPERATOR CONGESTION REVENUE RIGHTS VALIDATION AND ANALYSIS SOFTWARE WITH POWER MARKET CONSULTING, INC., OF IRVINE, CALIFORNIA, FOR A ONE-YEAR TERM, WITH THE OPTION OF ANNUAL RENEWALS, FOR AN INITIAL NOT -TO -EXCEED AMOUNT FOR $72,805 ISSUE: Award Request for Proposal No. 1809 for Software Services Agreement for a subscription and license of the OASISLive software system for validation of California Independent System Operator Congestion Revenue Rights charges and credits with Power Market Consulting, Inc., of Irvine, California, for a one- year term, with the option of seven one-year renewals, for an initial not -to -exceed amount of $72,805. RECOMMENDATIONS: That the Board of Public Utilities: Award Request for Proposal No. 1809 for Software Services Agreement with Power Market Consulting, Inc. for a subscription and license of the OASISLive software system for a one-year term, for an initial not -to -exceed amount of $72,805; 2. Authorize the City Manager, or his designee, to execute the Software Services Agreement with Power Market Consulting, Inc., including making minor non -substantive changes and to execute the annual renewals with an escalator no greater than 3% on the subscription fee and 2% on the consulting support fees; and 3. Authorize the City Manager, or his designee, to terminate the Software Services Agreement if the renewals are not agreed upon by both parties. BACKGROUND: As a California Independent System Operator (CAISO) market participant, the City of Riverside (Riverside) acquires and manages financial instruments called Congestion Revenue Rights (CRRs) in order to offset congestion costs that Riverside can incur in the day -ahead market. Riverside's long-term (ten-year forward) CRR portfolio has a current value of approximately nine million dollars, and the utility routinely acquires or purchases an additional one to two million dollars of CRRs on an annual basis. To acquire CRRs, Riverside participates in the CAISO's annual and monthly CRR allocation and auction processes. To optimally perform and participate in the allocation and auction processes, Riverside must have rapid Page 49