Agenda Information Sheet
DEPARTMENT: Denton Municipal Electric
CM/ ACM: Todd Hileman
Date: May 2, 2017
SUBJECT
Title
Consider adoption of an ordinance authorizing the City Manager, or his designee, to execute an amendment to the Energy Trading Risk Management Contract with ABB/Ventyx. The Public Utilities Board recommends approval (6-0).
Body
BACKGROUND
This agenda item is to seek approval by City Council for an amendment to the existing Energy Trading Risk Management (ETRM) software contract with ABB/Ventyx. This software is in use by the Energy Management Organization (EMO) as the "System of Record" to track and record energy purchases and sales. As the "System of Record" for EMO transactions, the ETRM software is similar to JD Edwards for City accounting functions. The purpose of the software is:
* Records energy transactions
* Aggregates transactions and communicates energy schedules with the Electric Reliability Council of Texas (ERCOT)
* Tracks our financial results
* Provides transaction reporting and;
* Provides invoicing and counterparty checkout capabilities
Both ABB/Ventyx and DME believe the existing ETRM system is not appropriate for use with the City's Renewable Denton Plan (RDP) focus for the following reasons:
* High variability of renewable PPA agreements require hourly updates to ERCOT
* A much larger volume of transactions
* ABB/Ventyx does not plan to enhance their software to accommodate RDP
* Because both ABB/Ventyx and DME have changed their business models, both parties agreed to change the length of the contract term
RECOMMENDATION
Consideration of approval of an amendment to the Energy Trading Risk Management (ETRM) software system contract with ABB/Ventyx.
ESTIMATED SCHEDULE OF PROJECT
The existing software contract, once amended, will run through December 1, 2017, following the City Council approval on May 2, 2017.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On April 28, 2017, a briefing on this matter was provid...
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