Title
Energy Management System Contract Renegotiation (NB)
Staff recommends amending the Energy Management System (EMS) contract with General Electric Power Systems (GE).
Explanation
The GE EMS application is the primary tool through which the Utility operates the electric transmission and distribution systems, economically dispatches electric generation, controls electric generation to ensure compliance with mandated operating guidelines, and collects, processes and stores the data required to ensure adherence to operating and security requirements. The reliable and uninterrupted performance of the EMS application is critical to the safe, reliable, secure, and economic operation of the Utility's electric system. Periodic application upgrades and continuous contractor support services are necessary to keep the EMS application and the electric system operation aligned with mandated operating and security requirements that are becoming increasingly stringent and exacting. The improved system security element will minimize the risk of system sabotage and is required to comply with the North American Electric Reliability Council guidelines.
The City Commission authorized staff to negotiate and execute a six-year contract with GE on January 26, 2004. The six year contract was the result of a cooperative purchasing effort by six utilities which realized a price discount of approximately 60% for scheduled system upgrades and client support services.
GE has submitted a proposal to the group of six utilities to amend the existing EMS contract by expanding the level of support services provided by GE over the remaining three years of the existing contract at a $20,000 per year discount, extending the terms of the contract for an additional six years at a 30% per year discount, and providing significantly expanded GE security services. The GE application has performed well, upgrades have been delivered in a timely manner, and support services have been s...
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