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SFPUC seeks retroactive fix and two-year extension for APX scheduling contract
Summary
At its March 4 meeting the Budget and Finance Committee heard SFPUC staff explain a requested retroactive correction to Amendment 1 and a two-year extension (through June 15, 2022) of the APX scheduling-coordinator contract, including additional ISO pass-through charges; the committee voted to forward the resolution to the full Board with a positive recommendation.
The San Francisco Budget and Finance Committee on March 4 heard from Sunita Jones of the San Francisco Public Utilities Commission about a resolution to retroactively approve Amendment 1 and to approve Amendment 2 to the APX scheduling-coordinator contract.
Jones told the committee the amendments would increase the contract’s not-to-exceed amounts and extend the contract by two years to June 15, 2022 so the city can continue submitting energy schedules into the day-ahead ISO market without a service gap. "We found that there was a mistake in Amendment 1," Jones said, and staff are asking the Board to retroactively correct that error before proceeding with Amendment 2.
Budget Analyst Sevin Campbell, of the Office of the Budget Analyst, told the committee the packet seeks three approvals: retroactive approval of the existing APX agreement, correction of the previously approved amount (from $105,000,000 to $107,900,000 as described in the resolution), and approval of a second modification that would add roughly $40,000,000 and extend the term by two years. Campbell said the city’s spending on the contract historically is about $27,000,000 to $30,000,000 per year and recommended approval.
The SFPUC presentation clarified that a portion of the increase represents ISO passthrough charges the city must pay to participate in the grid, not payments to the contractor for scheduling services. Jones said the agency has an RFP for a new scheduling coordinator in development and that the requested amendment is intended to "tide us over until we can get another contract in place and we don't want to have a gap in services." The presentation identified an additional $39,900,000 (reported in the staff presentation) for ISO pass-through charges; another staff summary in the record rounds that figure to $40,000,000.
After questions and no public comment, Chair Sandra Lee Feuer moved to forward the resolution to the full Board of Supervisors with a positive recommendation; the motion was taken without objection.
The committee did not take a roll-call vote on the floor; the item will appear on the Board of Supervisors agenda where supervisors may ask about the retroactive approval and the 2015 contract history, the chair warned.
