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HomeMy WebLinkAbout#10 Extension to Aspen Environmental Group AGENDA ITEM #10 r P, -I Public Utility District MEETING DATE: January 17, 2024 TO: Board of Directors FROM: Jared Carpenter, Electric Utility Director SUBJECT: Consideration of Approving an Extension to the Aspen Environmental Group Contract for the Integrated Resources Plan. Zt APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Authorize the General Manager to execute a contract amendment with Aspen Environmental Group (Aspen) for Integrated Resources Planning (IRP), extending the contract terms from December 31, 2023, to July 1, 2024. BACKGROUND: Through a competitive bidding process, the District entered into a professional services agreement with Aspen to develop the District's first Integrated Resource Plan (IRP), approved at the June 7, 2023 Board meeting. These services were expected to be completed by December 31, 2023, but the District requested some modifications late in the project to ensure recent changes in the available power supply market were incorporated into the plan. Due to these changes, the project needs to be extended into 2024 to allow for the final major milestone of presenting the results to the Board and completing the final report. No additional funds are required. ANALYSIS AND BODY: As part of the IRP deliverables, Aspen's proposal included the following strategic services for the development of an IRP: • Meet with District staff to discuss IRP goals, project schedule, and key concerns; • Develop a load forecasting model to determine the District's energy and capacity requirements; • Review existing power supply contract and the options available to the District; • Review Western Area Power Administration's contract proposal for Stampede generation and assist with contract negotiations; • Identify and create an optimal set of energy resources, planning reserve margins, transmission agreements, RPS standard, GHG regulations, and costs; • Perform a sensitivity analysis to assess the impact of variation to key input values; Page 1 of 2 Page 19 of 109 • Develop a written IRP report summarizing the findings, analysis, methodology, and recommendations; and • Present the IRP study to the Board. All deliverables are complete, except the final step of presenting the IRP to the Board and incorporating any changes that result from that presentation. GOALS AND OBJECTIVES: District Code 1.05.020 Objectives: 1. Responsibly serve the public. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1.05.030 Goals: 1. Manage for Financial Stability and Resiliency 2. Environmental Stewardship: Create a sustainable resilient environment for all our communities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. FISCAL IMPACT: None. ATTACHMENTS: None Page 2 of 2 Page 20 of 109