Energy Risk Management Consultant Wholesale Energy Risk Management Quantitative Model Review and Development

Background
The City of Anaheim Public Utilities Department (APU) is seeking proposals for an Energy Risk Management Consultant to enhance its Wholesale Energy Risk Management framework. This initiative aims to validate and improve the management of risks associated with Power Supply, Natural Gas, and Battery Energy Storage Systems (BESS), aligning with industry best practices in the utility sector.

APU serves approximately 360,000 residents and 15,000 businesses across a 50 square mile area, utilizing a mix of generation sources and transmission resources.

Work Details
The consultant will be responsible for the following tasks:
1) Validate the existing Power Supply Risk Management model, including cash flow at risk (CFaR) analysis, and provide strategic recommendations for improvement.
2) Review and validate the Natural Gas Risk Management program, assessing existing hedging strategies and developing a risk management model tailored to APU's needs.
3) Develop a comprehensive BESS risk management program that includes Value at Risk (VaR) analysis, degradation modeling, and operational constraints. Deliverables must include mathematical models and detailed program descriptions for APU staff to maintain.

Period of Performance
The contract is expected to commence on June 1, 2026, following the selection of a finalist on April 23, 2026. The initial term is three years with options for two one-year extensions.

Place of Performance
The services will be performed within Anaheim, California.

Bidder Requirements
Respondents must demonstrate experience in providing similar consulting services and have qualified personnel available for the project. They must comply with California prevailing wage laws and maintain an active registration with the California Secretary of State as well as an active Anaheim business license.