HomeMy WebLinkAboutA015 - Request to reallocate funding for Electric Services SCADA System UpdateITEM #:18
DATE:05-26-26
DEPT:ELEC
SUBJECT:REQUEST TO REALLOCATE FUNDING FOR ELECTRIC SERVICES SCADA
SYSTEM UPDATE
COUNCIL ACTION FORM
BACKGROUND:
The Combustion Turbine Controls Upgrade Capital Improvement Project has seen significant
savings as the result of favorable bids and a scope change involving using a Programable
Logic controller (PLC)-based platform instead of a Distributed Control System (DCS) platform
extension. Approximately $800,000 is estimated to be saved at the conclusion of the project
compared to the budgeted funds.
The electric utility’s Supervisory Control and Data Acquisition (SCADA) system is used to
monitor status and control power flows for interconnections to neighboring utilities, local
distribution, and transmission. Data from SCADA is also used as the basis for billing energy
transactions. The capabilities SCADA provides are crucial to the function of the electric utility.
The existing SCADA system was installed in 2000. Since then, SCADA software and
hardware have advanced to meet evolving industry standards and regulatory requirements.
Historically, the City maintained the system through support agreements with the current
vendor, which provided routine maintenance and periodic software and hardware updates at a
reasonable cost. Recently, however, the vendor ’s business practices have changed, making
ongoing maintenance and updates more complex and more costly.
Staff is particularly concerned that the vendor no longer supplies the hardware needed
to support the current system or complete future upgrades. The SCADA system is
currently due for updates, but completing those updates with the current vendor would
be significantly more difficult and costly. Future updates are expected to present the
same challenges. For these reasons, staff proposes using savings from the
Combustion Turbine Controls Upgrade Capital Improvement Project to pursue a
replacement of the current SCADA system.
To begin securing a replacement SCADA system, staff will issue an RFP for engineering
services. The selected engineering firm will develop the work scope, specifications and other
supporting documents for a SCADA system with Automatic Generation Control (AGC), define
evaluation criteria to assess each vendor ’s proposal, provide an engineering cost estimate,
provide standard terms and conditions for the procurement of a SCADA system, and assist
City staff during bidding and project execution. The specification and relevant supporting
documents will be used in an RFP process to select a vendor.
The selected SCADA vendor will be capable of providing hardware, software, and integration
services required for a functional SCADA platform. Their solution will also be scalable and
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architecturally flexible to accommodate additional generating stations such as the Ames
Municipal Energy Center, upgrades to the transmission and distribution system, and
integration of third-party systems such as Advanced Metering Infrastructure (AMI), Outage
Management System (OMS), and Advanced Distribution Management System (ADMS). It is
estimated that the engineering services and the new system will cost $800,000. Staff would
like to use the $800,000 savings from the Combustion Turbine Controls Upgrade Capital
Improvement Project to fund this project.
ALTERNATIVES:
1. Approve the request to reallocate savings from the Combustion Turbine Controls
Upgrade CIP project to a new SCADA upgrade CIP project.
2. Do not approve the request.
CITY MANAGER'S RECOMMENDED ACTION:
The electric utility’s Supervisory Control and Data Acquisition (SCADA) system is used to
monitor status and control power flows for interconnections to neighboring utilities, local
distribution, and transmission. Data from SCADA is also used as the basis for billing energy
transactions. The capabilities SCADA provides are crucial to the function of the electric utility.
The existing SCADA system is in need of update, but completing those updates and any future
updates with the current vendor will be significantly more difficult and costly due to their
changing business practices. Pursuing a replacement system will allow City staff to identify
other cost effective and functional SCADA solutions.
The initial step regarding the SCADA project will be to hire an engineer at a later date to
develop the specifications for a future proposal. Since no funding currently exists for
this new project, before initiating this project the staff would like the Council's approval
for the reallocation of the savings from the Combustion Turbine Controls project to this
new SCADA project. Therefore, it is the recommendation of the City Manager that the
City Council adopt Alternative No. 1, as described above.
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