Title
Approve Amendment No. 2 to the Professional Services Agreement with VIASYN Inc., to increase the total amount payable from $50,000 to $71,000 in order to provide continued energy scheduling coordination services, Renewable Energy Credit management, and financial settlement for the Nacimiento Hydroelectric Facility under its Power Purchase Agreement and, authorize the General Manager to execute the Amendment.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
Approve Amendment No. 2 to the Professional Services Agreement with VIASYN Inc., to increase the total amount payable from $50,000 to $71,000 in order to provide continued energy scheduling coordination services, Renewable Energy Credit management, and financial settlement for the Nacimiento Hydroelectric Facility under its Power Purchase Agreement and, authorize the General Manager to execute the Amendment.
SUMMARY/DISCUSSION:
Nacimiento Hydroelectric Plant began selling power through the California Independent System Operator (CAISO) in 2013. Participation with CAISO requires scheduling power production in advance of the date it is transmitted to the high-voltage electrical grid, schedule revisions, and outage reporting, all according to CAISO protocols. CAISO requires these functions be performed by a Certified Scheduling Coordinator. Weekly processing of CAISO invoices and resolution of any disputes to CAISO settlements are also required. In addition, hydroelectric generated power receives Renewable Energy Credits (RECs) issued by the Western Renewable Energy Generation Information System which requires a Qualified Reporting Entity (QRE) to account for and verify transfer of RECs to the power buyer.
The Agency does not have in-house CAISO Certified Scheduling Coordinator or WREGIS QRE capabilities. Thus, the Agency chose VIASYN Inc. as its Scheduling Coordinator in 2013 and QRE in 2014. VIASYN also performs monthly invoicing functions for the Agency for power generated per the Power Purchase Agreement. This Amendment No. 2 continues the services of VIASYN, Inc. with no change to the scope of services, which includes all of the services described above, and availability for additional electric power market consulting if needed.
On April 1, 2014, the Agency entered into a Power Purchase Agreement (PPA) with Northern California Power Agency (NCPA) through 2033. This Amendment to the VIASYN, Inc. Agreement does not change the PPA with NCPA, the price obtained for power generated, or any operating procedures.
Amendment No. 2 adds $21,000 to the Agreement with VIASYN, Inc. which, based on prior monthly costs, is estimated to carry VIASYN’s services for approximately 12-15 months.
OTHER AGENCY INVOLVEMENT:
The Monterey County Counsel Office has reviewed Amendment No. 2.
FINANCING:
The Agency has budgeted monies in FY 2016-17 Fund 130 - Hydroelectric Plant Operations to increase the encumbrance for this contract by $21,000, and the total amount payable under this Agreement from $50,000 to $71,000.
Prepared by: Chris Moss, Senior Water Resources Engineer, (831) 755-4860
Approved by: _______________________________________________
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
1. Board Order
2. Amendment No. 2
3. Amendment No. 1
4. Master Services Agreement