HomeMy WebLinkAboutF-4.1. Approval of Contract Extension with OATI, IncCONSENT ITEM F-4
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: JUNE 24, 2024
SUBJECT: APPROVAL OF CONTRACT EXTENSION WITH OATI, INC
BACKGROUND:
Among one of the several power resource division functions, staff settles transactions with the California
Independent System Operator (CAISO) with the assistance of settlement software that parses, organizes,
and shadow-settles voluminous transaction data. Azusa Light and Water (ALW) has an agreement with
OATI, Inc., successfully providing this software as a service. Light and Water Staff and OATI staff have
discussed extending the agreement for 3 years at a fixed annual cost.
RECOMMENDATION:
Staff recommends the Utility Board take the following actions:
1) Approve a 3-year contract extension with OATI, Inc. for webSettlement Software Services and
have the General Manager execute the agreement
ANALYSIS:
ALW, as a Scheduling Coordinator with the CAISO, schedules the City’s daily demand, import
transactions, and any necessary trades with counterparties. All Scheduling Coordinators settle
transactions with the CAISO at-least on a weekly basis. Such transactions may be settled using 5 or 15-
minute pricing data, which results in the production of a significant amount of data. To process and
transfer such large amounts of settlement information CAISO uses XML programmatic as well as
compressed delimited data. To manage such large amounts of raw information, ALW contracted service
with OATI, Inc.
OATI provides multiple services to the energy industry. One is its webSettlement service, which allows
users to view and validate voluminous raw settlement data. ALW has successfully used this product to
shadow/validate CAISO settlements and verify its weekly CAISO invoices since 2015. The current
agreement automatically renews annually with a 3% escalation. Recently OATI staff approached ALW
and offered to extend the existing agreement. The proposal for this extension includes a one-time 4%
increase from the current monthly rate and freezing this rate for three years.
Approved
Utility Board
06/24/2024
Approval of OATI Extension
June 24, 2024
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Staff values the reliability of such critical service and recommends extending the agreement for another
three years. The monthly fee for this service will be $9,318 per month with no escalation. The extension
will expire on July 30, 2027. Staff recommends the approval of the 3-year extension of webSettlement
services provided by OATI, Inc. and have the General Manager execute the agreement.
FISCAL IMPACT:
The fiscal impact of the recommended actions in this consent item is $9,318 per month. Staff has
sufficient funds to use in fund #33-40-785-560-6493 to pay for this service.
Prepared by: Prepared by:
Richard Torres Tim Vuong
Assistant General Manager – Senior Power Resources Planner
Resource Management
Reviewed and Approved: Reviewed and Approved:
Danny Smith Tikan Singh
Utilities Admin & Finance Manager General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) AZUSA Change Order #06