Exemption, Board of Water and Power Commissioners and City Attorney reports, and Ordinance relative to the Large Power Transformers and Variable Shunt Reactors for Various Substations Project.

This ordinance authorizes the Los Angeles Department of Water and Power (LADWP) to procure Large Power Transformers (LPTs) and Variable Shunt Reactors (VSRs) using a competitive sealed proposal method with negotiation capabilities. This deviates from the traditional lowest-bidder approach due to the highly specialized and complex nature of the equipment, which includes custom engineering, long manufacturing timelines (16-48 months), and advanced technological requirements. The procurement process will allow for consideration of factors beyond price, such as performance reliability, delivery schedules, and manufacturer support. The contracts awarded under this ordinance can have a term of up to nine years. The estimated total cost for this procurement is approximately $732 million, funded through power reliability surcharges passed on to LADWP customers. This initiative is part of the Power System Reliability Program (PSRP) and is crucial for modernizing aging infrastructure and achieving LADWP's goal of 100 percent carbon-free energy by 2035.

This measure allows LADWP to more effectively procure critical, specialized equipment needed to maintain and upgrade the power grid. While the $732 million cost will be funded through existing power reliability surcharges, it aims to ensure a more resilient and reliable power supply for residents and supports the transition to clean energy.

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