Denton Ionwave #9003 Addendum 1

City of Denton Solicits Energy Trading Risk Management (ETRM) Software for Denton Municipal Electric

The City of Denton, through Denton Municipal Electric (DME), is seeking proposals for a commercial-grade Energy Trading Risk Management (ETRM) software solution to modernize and support its energy trading operations. - Government Buyer: - City of Denton Purchasing Department, with Denton Municipal Electric (DME) as the end user - OEMs and Vendors: - No specific OEMs named; open to all vendors with proven, commercially deployed ETRM solutions, especially those with ERCOT market experience - Products/Services Requested: - Energy Trading Risk Management (ETRM) Software Solution - Must support front, middle, and back office functions: trade capture, position management, risk analytics (Monte Carlo simulations, Value at Risk, Cash Flow at Risk), credit and collateral management, invoicing, and accounting - Integration with EMDS data exports and third-party data vendors - Support for both physical and financial energy products (power, natural gas, environmental commodities, CRRs, options, swaps, etc.) - Integration with exchanges such as ICE and NGX - Scalable for up to 16 users with future growth - Capable of on-premise or cloud (preferably AWS) hosting - Robust audit controls, security, user access management, and automation of data flows and reporting - Ability to handle large data volumes (approx. 1 TB migration) - Implementation, integration, and data migration services - Training and documentation for DME personnel - Support and maintenance for at least one year post go-live, with options for annual subscription and future upgrades - Unique or Notable Requirements: - Must comply with ERCOT market rules - Preference for AWS hosting capability - Excludes dispatch optimization and environmental commodity registry integration - Must meet specific insurance and confidentiality standards - Pricing firm for first year, with capped annual adjustments - Contract term is five years with option for six-month extension - Estimated Contract Value: - Likely in the $500,000 to $2,000,000 range over five years, depending on solution scope and services - Primary Locations: - DME Administration Building, 1659 Spencer Road, Denton, TX 76205 (place of performance) - 901-B Texas Street, Denton, TX 76209 (delivery location) - 215 E McKinney St, Denton, TX 76201-4299 (billing address) - Potential Competitors: - Vendors with established ETRM platforms, such as Openlink (ION Group), Allegro Development (now part of ION), FIS, Enuit, Trayport, and Endur

Description

The City of Denton is issuing a Request for Proposal (RFP) for Energy Trading Risk Management (ETRM) software to support Denton Municipal Electric's risk and energy management operations. The procurement seeks a commercial-grade ETRM solution with capabilities across front, middle, and back office functions, including trade capture, position management, risk analytics, credit and collateral management, and invoicing. The system should integrate with existing data sources, support ERCOT market rules, and be scalable and user-friendly. Proposals are due by April 15, 2026, with a virtual pre-submittal conference held on March 26, 2026.

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