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Committee approves retroactive amendment to SFPUC agreement to cover ISO transmission charges
Summary
The committee approved an amendment to the SFPUC scheduling agreement with APX Inc., increasing the not-to-exceed amount by $100 million to cover California ISO transmission charges and authorized retroactive payments to cover months since the original agreement commenced.
The Budget & Finance Committee voted to amend a San Francisco Public Utilities Commission contract with APX Incorporated (Agreement CS-344) to increase the not-to-exceed amount by $100,000,000 to a total of $105,000,000 to cover California Independent System Operator (ISO) transmission charges.
SFPUC acting energy infrastructure manager Laurie Mitchell explained that the SFPUC previously paid transmission charges through a PG&E interconnection agreement that expired June 30, 2015; APX is now the city’s scheduling coordinator and has covered billing for July and August 2015. Assistant General Manager Barbara Hale said the costs have been incurred historically but are now billed through APX rather than PG&E. The budget analyst reported ISO billings for July–September of $4,969,988 and recommended retroactive authorization to June 16, 2015, when the original agreement began.
The committee accepted the budget analyst’s recommendation to amend the resolution to provide retroactive authority to cover APX’s prior payments and approved the amendment and the underlying resolution as amended.
Implementation: SFPUC said the APX pass-through charge covers I.S.O. transmission payments and APX receives no margin on the passthrough. The Power Enterprise budgets have accounted for the increases; the department will proceed to execute the amended agreement and reflect the change in budget documents.
