09-27-2021 BPU RPT 10 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 27, 2021 SUBJECT: PROFESSIONAL CONSULTANT SERVICES AGREEMENT FROM RFP NO. 2074 FOR ELECTRIC COST OF SERVICE ANALYSIS AND RATE DESIGN WITH NEWGEN STRATEGIES AND SOLUTIONS, LLC FOR A TERM TO DECEMBER 31, 2023 WITH AN OPTIONAL 2 YEAR EXTENSION, IN THE AMOUNT OF $127,604 ISSUE: Consider approving a Professional Consultant Services Agreement from RFP No. 2074 for Electric Cost of Service Analysis and Rate Design with NewGen Strategies and Solutions, LLC., for a term to December 31, 2023 with an optional two-year extension, in the amount of $127,604. RECOMMENDATION: That the Board of Public Utilities: 1. Approve Professional Consultant Services Agreement from RFP No. 2074 for Electric Cost of Service Analysis and Rate Design with NewGen Strategies and Solutions, LLC., for a term to December 31, 2023; and 2. Authorize the City Manager, or his designee, to execute the optional two year contract extension. BACKGROUND: As Riverside Public Utilities (RPU) plans for its future, a cost-of-service analysis and rate design project is necessary for financial planning purposes as well as to design future rate adjustments beyond the current electric utility five-year rate plan that includes a final year rate adjustment effective January 1, 2023. Some issues RPU has identified for determining future revenue requirements and designing rates include: Changing Industry and Regulatory Requirements The impacts of distributed generation, electric vehicles, and renewable energy portfolio requirements need to be considered along with changes in local, state, and federal regulatory requirements. This includes the City of -carbon electricity production by 2040 while continuing to ensure safe, reliable, and affordable energy for all residents. Operating and Infrastructure Costs The costs of production, transmission, distribution, and funding for capital improvements to meet the Electric Util