SCIP_Consultant_Services_Statement_of_Objectives__0002.pdf

Statement of Objective (SOO) San Carlos Irrigation Project (SCIP)

Utility Scale Resource and Power Pooling Optimization Consultant Services

1. Purpose

The Bureau of Indian Affairs / San Carlos Irrigation Project (“SCIP”) operates an electric utility as part of their duties as a Federal Agency. BIA has a requirement to comply with 25 Code of Federal Regulation (CFR) 175, specifically 25 CFR 175.205 which states that rates and fees will be reviewed at least annually to: (a) Determine if our financial requirements are being met to ensure the reliable operation of the utility; and (b) Determine if revenues are sufficient to meet the statutory requirements.

2. Scope

SCIP is requesting a qualified Electric – Utility Scale Resource and Power Pooling Optimization Consultant who will furnish all necessary labor, supervision, materials, licenses, insurance, transportation, and equipment necessary to provide utility regulatory compliance services and technical consulting for current and future SCIP electric operations.

Qualified firm must specialize in utility rate and cost-of-service studies, coordinated resource scheduling with similarly situated preference power entities, energy accounting at both retail and wholesale levels in support of power contract administration, power resource planning and procurement, power system planning studies, and demonstrated working relationships with transmission providers. Experience with hydropower resource scheduling is also required.

3. Period and Place of Performance

Services shall be provided for a 12-month base period with the option to extend services annually up to an additional four (4) 12-month periods. Consultant shall primarily provide services at the main SCIP facility located at 13805 N Arizona Blvd, Coolidge, AZ 85128.

4. Background

Contract # INA15PC00140 was awarded in August 2015 for similar services.However, increased focus on future rate options and recommendations is needed to ensure SCIP’s ability to meet financial requirements.

5. Objectives

BIA SCIP promotes efficient administration, operation, maintenance, and construction of utilities by following and enforcing: (a) Applicable statutes, regulations, Executive Orders, Indian Affairs manuals, Operations Manuals; (b) Applicable written policies, procedures, directives, safety codes; and (c) Utility industry standards.

BIA SCIP requires the successful awardee to develop and implement a plan to successfully achieve the following three (3) objectives:

OBJECTIVE 1:

Analyze data and present solutions to SCIP to manage its power contracts and resource pooling. Tasks associated with this objective may include but not be limited to:

Forecast and prepare resource requirements – This task requires specific knowledge of transmission/distribution interconnections and supply routes to effectively supply power to the appropriate point of receipt on the SCIP system. Also, will require a thorough understanding of SCIP’s historical load patterns and trends, which will be made available upon award to the successful vendor.

Forecast and prepare annual/monthly/hourly power schedules with appropriate offices (Western Area Power Administration (Western), Arizona Electric Power Cooperative (AEPCO), Southwest Power Pool Resources Group (SPPR), and the Southwest Public Power Agency (SPPA) – This task will require extensive knowledge of the various SCIP power purchase and transmission agreements, and how those resources can be most economically and efficiently scheduled under these contracts. Also, this task requires understanding of SCIP’s historical loads patterns and the ability to discern the power consumption data among SCIP, the San Carlos Apache Tribe, and the Gila River Indian Community Utility Authority (GRICUA).

Coordinate resource deliveries and transmission tags with Western, SPPA, AEPCO and others – This task requires experience and a working relationship with SCIP suppliers on power pre- schedules and experience responding to short term curtailments or other operational challenges during the scheduled month. Qualified firm must be qualified power scheduling agency for pre-schedule and schedule SCIP’s loads.

Coordinate resource scheduling/pooling activities with similar Arizona load serving entities

- This interaction requires specialized experience working with all the other participating power pool entities to analyze their needs in relation to SCIP’s needs; to effectively coordinate the available resources to the benefit of all parties. Also, requires working relationships with existing Balancing Authorities.

Review resource invoices for accuracy including reconciling deliveries, schedules, tags and proper itemization with GRICUA, SPPA, and AEPCO – This task requires detailed knowledge of supplier invoice parameters, scheduling dynamics, and transmission delivery procedures.

Provide monthly billing audits for SCIP’s customers GRICUA – This task will require knowledge of SCIP and GRICUA dynamic systems interaction, loads and loss factors.

Assist SCIP with long term power resource acquisition, participation in pooling opportunities, such as resource exchange programs Integrated Resource Schedule (IRS), SPPR and SPPA – This task requires on-going participation in identified resource exchange programs. It also requires current involvement in the SPPR/SPPA Joint Action Agency process.

Attend Power Marketing Meetings, as requested by the Contracting Officer’s

Representative (COR), that potentially could impact SCIP’s power supplies and delivery options [Colorado River Storage Project (“CRSP”), Irrigation and Electrical Districts Association of Arizona (“IEDA”), SPPR, IRS, Parker-Davis Project (“PDP”), Western and WECC] – The vendor should have the ability to readily provide this service to other utilities/load serving entities to maximize the value to SCIP, as well as minimize the cost burden of this crucial activity by sharing the cost with the other entities when possible.

Report/Deliverables associated with this objective:

Report/Deliverable Delivery Timeframe Scheduling letter to Western Area Power Administration for CRSP and PDP power

Monthly

IRS Group email documenting final distribution of resources and special conditions

Monthly

Western Billing Allocation Worksheet

Daily CRSP Power Schedules Monthly Summary of Integrated Federal Resource and Power Transactions

SCIP Attachment I to Exhibit A Loads and Resources Forecast

SCIP hourly CRSP pre-schedule to AEPCO balancing authority

SCIP hourly CRSP pre-schedule to Western

AEPCO hourly price sheet Monthly GRICUA Wheeling audit report Monthly SCIP-GRICUA settlement invoice breakout Monthly Parker-Davis Project energy exchange request to Western

Annual

SCIP Attachment P – 10 year forecast to Western

Annual

EIA 861 form data Annual

OBJECTIVE 2:

Analyze data and present solutions to SCIP for future rate revenue requirements and rate design options and recommendations on an annual basis. Tasks associated with this objective may include but not be limited to:

Study the current operations and the status of revenue requirements of the electric power utility program at SCIP - The study will determine the cost-of-service and must incorporate the concept of unbundled cost for providing electricity – This task requires knowledge of power purchase, transmission, and wheeling agreements and a strong understanding of the requirements under 25 CFR 175. This task will require a thorough understanding of SCIP's historical loads and patterns to accurately forecast future purchase power costs. It also requires an understanding of "preference power" principles and their applicability for cost allocation and rate setting. Vendor must demonstrate the ability to work with reports and data formats provided from SCIP's accounting system.

Develop electric power rates and service fee schedules that incorporate the cost-of-service and unbundled costs of electricity in accordance with the 25 CFR 175 requirements – This task requires participation in Federal Power Marketing rate processes and the ability to coordinate rate changes with SCIP's fuel adjuster surcharge. Must provide BIA with a variety of

(1) rate design options and (2) revenue options to ensure SCIP builds up its reserves and funding to perform maintenance. In addition to the report, the contractor must annually present their options and recommendations to BIA.

Plan, publicize and lead public meetings to present data on proposed rate adjustments;

evaluate customer feedback and provide input to BIA Government SCIP personnel on final determination – This task requires demonstrated ability to conduct public meetings in accordance with 25 CFR 175 and consultation on the Federal Register Notice and public hearing processes.

Prepare a written report on the items listed above, including a discussion of issues and concerns, finding and conclusions, and recommendations – This task requires appropriate level of technical writing for the intended use by SCIP.

Report/Deliverables associated with this objective:

Report/Deliverable Delivery Timeframe Wheeling Sales report

Breakdown of Sales Forecast, Year-over-year Changes, Summary of Sales Changes

Financial Pro-Forma

Cost of Service model Annual Executive Summary of Rate Changes Annual

Customer Impact Report Annual Rate Comparison Report Annual New Rate Tariff Sheets Annual Cost-of-Service and Rate Design Report Annual Public Information Meetings (Coolidge, Oracle, San Carlos)

Report Package for WRO Director Annual

OBJECTIVE 3:

Provide technical planning, reporting, and special studies services. Tasks associated with this objective may include but not be limited to:

Work with SCIP on developing and supporting renewable resource integration, resource conservation plans, and formal Integrated Resource Plan (“IRP”) filing – This task requires experience developing and filing Integrated Resource Plans. Requires registered professional engineer on staff to supervise and approve any technical work.

Work with SCIP on Power System Planning Studies – This task requires extensive experience and detailed knowledge of sub-regional and regional transmission systems [including experience dealing with the ACC, WECC, North American Electric Reliability Corporation (“NERC”) and Federal Energy Regulatory Commission (“FERC”)] and obtain knowledge of SCIP’s transmission and distribution system.

Assist SCIP with NERC/FERC reliability compliance requirements – This task requires registered professional engineer to supervise and approve the technical work.

Assist SCIP in regional planning/operational requirements – This task requires registered professional engineer to supervise and approve the technical work.

Special requests for studies and/or audits will be made by the Power Manager – This task requires knowledge of SCIP operations, systems, rates, loads, and resources. Also, requires extensive experience and detailed knowledge of sub-regional and regional transmission systems [include experience with dealing with the Arizona Corporation Commission (“ACC”), WECC, NERC and FERC].

Work with SCIP on development of a Strategic Plan and Operational Analysis – Provide analysis of different operating modes to including partial and whole divestiture, and the impacts on SCIP’s operations. Evaluate the feasibility, risks, and benefits associated with various operational scenarios and recommend strategies for optimization.

Assist, as needed with adhoc Financial Analysis – This task would include elements of both short-term and long-term budgeting, comparison of actuals to estimates, and calculating reserve fund requirements.

Hydropower Resource scheduling support - SCIP participates in coordinated hydropower resource scheduling with other regional preference utilities and require resource scheduling support from the successful awardee.

Report/Deliverables associated with this objective:

Report/Deliverable Delivery Timeframe Engineering studies associated with Power System Planning

10-year future forecast for SCIP power consumption growth, operations, and maintenance

Five-year Integrated Resource Plan

(“IRP”)

Annual

Annual update to Five Year IRP Annual Documentation of compliance with NERC Reliability Standards

Annual

Annual Annual Annual Annual

6. Operating Constraints

SCIP intends to award a single Firm Fixed Price (FFP) contract to provide the services identified in this solicitation. Current SCIP rate increases went into effect in September 2023. Services under the resultant contract will be required for the next annual review.