HomeMy WebLinkAbout~Master - Contract Renewal for Electric Load Forecasting Software RESOLUTION NO. 23-302
RESOLUTION APPROVING CONTRACT RENEWAL FOR ELECTRIC LOAD
FORECASTING SERVICES FOR THE CITY OF AMES
WHEREAS, Electric Services provides energy to most homes and businesses in Ames.
Energy that is not produced by the City's local electric generation is purchased through a regional
organization called the Midcontinent Independent System Operator (MISO). This energy is
purchased on a day-ahead and real-time basis, to match customers' electric requirements with
energy production. To accomplish this, sophisticated software is needed to balance electric load
forecasting information to create the right balance of local generation and market purchases; and,
WHEREAS, this action involves a subscription for load forecasting software customized
for Ames that provides the necessary platform, tools and functionality to enable staff at Electric
Services to transact with the MISO Energy Market. The software utilizes a machine learning
forecast engine utilizing Al technology and multiple weather forecasts to deliver accurate load
forecasts that are customized for Ames, which enables Electric Services to market, schedule, and
manage the City's load(the electrical demand needed by its customers) in MISO; and,
WHEREAS, the use of this software enables staff to make strategic decisions to optimize
the utility's portfolio in the MISO market. It is also of critical importance for monitoring and
communicating peak load alerts for Ames.Electric Services has been using Enverus software since
2009. Rather than purchasing the software, the City leases the product; and,
WHEREAS, Enverus has offered the utility a 10% rate savings if the utility enters into a
3-year contract instead of a typical 1-year contract. The 3-year contract would still be billed in
annual installments, with $25,572 due in FY 2023-24, $26,876 due in FY 2024-25, and $28,247
due in FY 2025-26. The approved FY 2023/24 operating budget includes $30,000 for this software
and related support services; and,
WHEREAS, because a 3-year contract could commit the utility to payments beyond the
currently approved budget, staff has requested the inclusion of a non-appropriation clause in the
agreement. This clause would allow cancellation without penalty in the event the City Council did
not appropriate funds for the software in future budgets.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the contract renewal with Enverus, of Dallas, Texas, in the total amount of$80,695 for the
period of July 1, 2023, through June 30, 2026, conditioned upon the vendor agreeing to a non-
appropriation clause, is hereby approved.
ADOPTED THIS 23rd day of May, 2023.
�5w- � e 4:�e
Renee kall, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 23rd day of May, 2023.