Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement and Compliance
ACM: David Gaines
DATE: August 18, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a third amendment to a Professional Services Agreement between the City
of Denton and GL PwrSolutions Inc., amending the contract approved by City Council on February 5,
2013, in the not-to-exceed amount of $857,469.06; amended by Amendment 1 approved by the City
Manager; amended by Amendment 2 approved by the City Council; said third amendment to continue
to provide compliance, studies, modeling, and other professional services for Denton Municipal
Electric’s transmission and generation assets as required by regulatory agencies including the Federal
Energy Regulatory Commission (FERC), North American Electric Reliability Corporation (NERC),
Texas Reliability Entity (TRE), and the Electric Reliability Council of Texas (ERCOT); providing for
the expenditure of funds therefor; and providing an effective date (File 5148 – providing for an
additional third amendment expenditure amount not-to-exceed $284,259, with the total contract amount
not-to-exceed $2,253,668.14). The Public Utilities Board recommends approval (4 - 0).
INFORMATION/BACKGROUND
As a transmission owner/operator, transmission planner, and a generation owner, Denton Municipal
Electric (DME) is required to adhere to regulatory protocols, requirements, and standards from FERC,
NERC, TRE, and ERCOT to develop annual transmission planning studies such as the FERC 715 study,
perform modeling information on an weekly basis, coordinate transmission system changes with each
ERCOT modeling group and other electric utilities, attend ERCOT working group meetings, and prepare
additional studies as needed. DME is also obligated to review projects proposed by other utilities and
generation entities.
GL PWR Solutions Inc. currently provides these professional services under contract 5148. The
remaining funding on this contract allows GL PWR Solutions Inc. to start the required studies and
modeling related to transmission compliance requirements for 2021, but there is insufficient funding to
complete these tasks. The deadline for several activities is approaching. Since timing is important, the
requested amendment to utilize GL PWR Solutions, Inc. will allow DME to complete the FERC 715
study and modeling submissions before their deadline. DME must meet deadlines for all submissions to
avoid being in violation of NERC, ERCOT, and TRE requirements. DME does not possess all the
software and training necessary to complete the requirements.
The third amendment will provide funding necessary to complete these activities for 2021. DME does
intend to complete the RFQ process for a new contract for 2022 and beyond. A summary of how the
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215 E. McKinney Street
Denton, Texas
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amendment estimate was constructed is included in the proposal attached as Exhibit 1. Amendment #1
added funding to perform studies related to the Denton Energy Center and amendment #2 added funding
to extend services for 3 years.
The annual FERC, NERC, TRE, and ERCOT requirements that are in effect currently are:
• Preparation of the FERC 715 Annual Transmission Assessment (detailed evaluation of
transmission performance for a five-year period and development of solutions that will resolve
all NERC or ERCOT performance standard violations that were discovered in the analyses).
• Preparation of the ERCOT Annual Steady State Working Group Data Sets (The Data Set
consists of the transmission computer models for eight seasonal cases for the first future year
and consists of the transmission computer models for future years two through six, which
requires a total of seven additional cases.).
• Preparation of the ERCOT System Protection Working Group present and future year short
circuit cases (preparation of five short circuit models).
• Submission of dynamics data in response to requests from the ERCOT Dynamics Working
Group.
• Preparation and maintenance of a Geomagnetic Disturbance Model. This requirement was
added in 2016.
• Review and verify the ERCOT loss factor calculations
• Review and update ERCOT contingency definitions
• Review and update the ERCOT Data Dictionary (definition of all busses in the ERCOT power
system model)
• Response to inquiries and requests for information from ERCOT and any of their working
groups related to modeling issues.
• Coordination of planned transmission system projects with adjacent transmission owners to
include review of system protection plans and changes.
• Coordinate discussions with other utilities for transmission planning to ensure that projects
proposed will provide the best benefit to all transmission owners in the area and represent the
best solutions for resolving performance issues for all transmission service providers.
• Preparation of project approval documentation for ERCOT regional planning group and
ERCOT submissions.
• Preparation of reports and documentation in response to ERCOT, NERC, TRE, or other utility
inquiries.
• Attendance at meetings to assist and represent DME including participation in conference calls.
• Perform such follow up analysis as needed by DME to fully define project requirements.
• Preparation of Facility Interconnection Studies for submission to ERCOT for any generation
interconnection requests received including preparation of responses to any questions received
from market participants. (Generation Interconnection Requests are infrequent occurrences but
must be responded to when received. DME is working on concluding evaluation of the
interconnection request for the Denton Energy Center at this time.)
GL PWR Solutions has provided the above listed services for DME since November of 2010. The
knowledge base that they have acquired and the computer data that has been assembled by GL PWR
Solutions for the studies and ERCOT submissions since that time builds experience and understanding
with the DME transmission system and provides great advantage for the future evaluations and modeling
that must be completed. All the services proposed to be obtained from GL PWR Solutions are related
and require much of the same data, files, knowledge, and expertise. Making use of a single entity to
address all the requirements stated above, and leveraging the knowledge and data assembled by GL
PWR Solutions continues to be the most efficient use of resources.
It should be noted that FERC, ERCOT, and NERC requirements are “relatively” stable, but they are not
static. Therefore, additional funding has been included that covers anticipated regulatory changes, the
potential need for preparation of project approval submittals to ERCOT, the possibility that DME could
require analytical or technical representation for proposals submitted by ERCOT or other utilities,
preparation of generation interconnection requests should any be received, and for other analytical or
compliance related support needs that may arise.
Contract #5148 is structured to be billed on an hourly basis for work performed and does not obligate
DME to provide work to fulfill the contract amount or to make any minimum expenditure.
DME recommends an amendment to the existing contract. This recommendation is based on reference
comments from Purchasing Department, timing related to submission deadlines, and due to studies and
model developments presently in process. Both entities are satisfied with the terms and conditions in the
existing contract.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 5, 2013, City Council approved a contract with GL PwrSolutions Inc., in the not-to-exceed
amount of $857,469.06 (Ordinance 2013-023).
On November 2, 2016, City Manager approved Amendment 1 with GL PwrSolutions Inc., in the not-
to-exceed amount of $99,500.
On February 7, 2017, City Council approved Amendment 2 with GL PwrSolutions Inc., in the not-to-
exceed amount of $1,012,440.08 (Ordinance 2017-033).
On August 10, 2020, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award Amendment No. 3 with GL PwrSolutions Inc., to continue to provide compliance, studies,
modeling, and other professional services for Denton Municipal Electric’s transmission and generation
assets as required by regulatory agencies including the Federal Energy Regulatory Commission (FERC),
North American Electric Reliability Corporation (NERC), Texas Reliability Entity (TRE), and the
Electric Reliability Council of Texas (ERCOT), in the not-to-exceed amount of $284,259, for a total
amended contract amount of $2,253,668.14.
PRINCIPAL PLACE OF BUSINESS
GL PwrSolutions Inc.
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This project is ongoing.
FISCAL INFORMATION
These services will be funded from operations and maintenance budget account 600500.7854.5880A.
Purchase Order #161435 will be revised to include the third amendment amount of $284,259. The total
amount of this contract is $2,253,668.14. Project item costs for this contract are attributable to the
transmission category and will ultimately be recovered through the Public Utility Commission
transmission cost of service program (TCOS).
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Amendment 1
Exhibit 4: Ordinance and Amendment 2
Exhibit 5: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Mark Zimmerer, 940-349-7169.
Legal point of contact: Mack Reinwand at 940-349-8333.