Post Date: 5/24/11



Post Date: 6/15/11

General

Q1: What if the notes section of the Excel forms does not have enough space for comments?

A1: Even though the full text is not visible when viewing the entire form, the data is captured in the cell when you click on the cell.

Q2: When are the updated Time of Delivery (TOD) factors going to be available?

A2: The TOD factors are available in the form now.

Q3: When will Attachment D be finalized?

A3: We have asked the CPUC to complete their revisions to the Project Viability Calculator by the end of May.

Q4: In Section XX. H, p 51; Required Forms for Short-term Offers, should the reference in this section be to Section VIII.D, and not VIII.C?

A4: Yes, the reference should be to section VIII.D “Required Forms”.

Q5: Will there be a form biogas contract available for review? If so, when?

A5: There will not be a form contract issued. Please submit a detailed term sheet.

Q6: Is there a bid deposit required for each proposal?

A6: Yes, for each project that is shortlisted. It does not apply to power or RECs from existing resources for terms of less than 5 years.

Q7: Do existing, operating projects need to provide the same level of information as new ones?

A7: Existing projects will generally require less information than new facilities. As noted on page 23 of the Solicitation Protocol, we do not required tabs 6 and 7 and some of the information in tab 3 related to the construction of a new facility.

Q8: Is a PPA mark-up acceptable?

A8: PG&E prefers that offers include a term sheet.

Q9: Can all variations of an offer be submitted in one Attachment D and one Attachment I?

A9: A separate Attachment D should be submitted for each offer variation. One detailed term sheet (Attachment I) is sufficient.

Q10: Is there a preference for women-, minority- or service disabled veteran-owned business enterprises (WMDVBE)?

A10: WMDVBE status, or intent to subcontract with MWDVBE suppliers, is a consideration in the solicitation.

Q11: The RFO seems to use the terms “seller” and “participant” interchangeably on page 22 when limiting the number of Offers to five if the offered projects total more than 200MW. Please confirm that these terms are interchangeable.

A11: Yes.

Q12: If “Participant A” has 6 projects totaling over 200MW, and forms two wholly-owned project companies (B and C), and contributes 5 projects to B and one project to C, is each project company a “participant,” so that each project company may submit offers for up to 5 projects? 

A12. PG&E considers the parent the participant.  The offer limit will be applied so that A, B and C submit no more than 5 offers in aggregate of any technology.  PG&E will consider the experience of Participant A when assessing project viability (e.g. experience building utility scale generation) and credit risk.

Q13: If the answer above is that Participant A (the parent) and project companies B and C are treated as a single consolidated entity, and therefore limited to 5 Offers in the aggregate, would the answer be different if Participant A owned only 50% of project company B while owning 100% of project company C, i.e. would there now be two qualified “participants” that could each submit Offers for 5 projects, or a total of 6 Offers in this example? 

A13: PG&E would consider the joint venture (Company B) a separate Participant, with a separate offer limit.  PG&E would consider the experience of Participant A, as well as the experience of the other company owner when assessing project viability and credit risk.  In order to be considered a separate participant, Company B should be a separate and discrete legal entity.  We would expect that entity to be able to provide separate tax information if shortlisted.

Q14: If the answer above is that Participant A’s ownership in B results in a total of 6 projects being deemed offered by “Participant A” in the RFO (thereby exceeding the 5 Offer limit), what level of Participant A’s minority ownership (e.g. 15%, 40%, 49%?) in project company B would qualify that project company as an independent “participant” so that each of project company B and C in this example would have its own 5 Offer limit?  

A14: N/A.  The answer is that Participant A may submit 5 offers, and Participant B (the joint venture) may submit 5 offers.  As long as Participant B is a true joint venture, the ownership percentage is not relevant.

Q15: Is it possible for more than one offer at a particular site to make the shortlist? If so, who chooses which offer to go forward with?

A15: An offer refers to a specific project at a specific site. The seller may propose variations on the offer. PG&E will shortlist the project based on the most competitive offer variation.

Q16: What if the land is in another IOU’s territory?

A16: Projects in SCE’s and SDG&E’s territories are within the CAISO and can be submitted into this solicitation.

Q17: Please clarify the rules for when multiple bids from different portions of a project are bit to different off-takers.

A17: The offer submitted to PG&E should not be contingent on the sale of another portion of the project to another party. Ideally, portions of the project being sold to different off-takers would need to be metered separately. It will look like separate projects that are adjacent. Alternatively, the offer could be for a fixed percentage of project output going through a single meter.

Q18: What will be the heat rate used for biogas?

A18: Biogas will be assessed at a 7,200 Btu/kWh heat rate.

Q19: Do the pricing alternatives required for projects intending to utilize ARRA federal tax incentives count against the 4 offer variations limitation?

A19: No, this information can be provided on the pricing tab.

Q20: Will PG&E consider a joint PPA with another IOU?

A20: No, not at this time.

Q21: Does PG&E give higher scores to more environmentally friendly plants?

A21: Environmental attributes, such as the project’s impact on air quality or the ability to improve public health, are considered in our evaluation of offers. Please refer to the “Other Project Attributes” of the Protocol, page 26.

Q22: What is the maximum duration for the PPA?

A22: There is no maximum duration, although PG&E has not yet executed any RPS PPAs longer than 25 years.

Q23: Please identify the LMP zone applicable for the Tehachapi area? (SCHD or SCEN)?

A23: The zone would depend on the actual point interconnection. The Tehachapi area encompasses both LMP zones.

Q24: Does PG&E have a technology preference, based on peak load?

A24: No, PG&E does not have a preferred technology. Each project is evaluated based on the net value of energy when it is delivered.

Q25: What is a “high level block diagram” as listed in the requirements for a Project Description?

A25: A “high level block diagram” is a basic schematic showing the major components of the project and associated facilities and their location on the site.

Q26: Page 14 of the handout slides refers to PPA vs PSA. Please clarify PSA. Under what circumstances will PG&E enter into a Purchase and Sale Agreement?

A26: PSA is a Purchase and Sale Agreement for utility ownership. Under a PSA, the Participant would develop the project for purchase by PG&E upon commercial operation. Such proposals will be considered head to head against PPA offers.

Q26: What types of price escalators are acceptable? Is a price indexed to CPI acceptable?

A26: A price escalator is acceptable, as long as it allows PG&E to know the full price of your offer for every year of the contract at bid evaluation time.  As an example, you may propose an offer that is priced at $90/mwh in year 1, plus 1% escalation.  An offer priced at $90/mwh plus CPI, would not provide the same price certainty over the delivery term and would not be acceptable.

Eligibility

Q1: Isn’t 2% equal to about 200 MW of baseload? Is PG&E really going through all of this for the equivalent of 200 MW baseload?

A1: As shown on Table III.1 of the RFO Protocol, 200 MW of baseload power is equal to about 2% of PG&E’s bundled sales. Assuming a capacity factor of 25% for intermittent resources, PG&E could procure 800 MW for an equivalent amount of energy.

Q2: Does PG&E have a preference for any particular size project?

A2: PG&E does not have a specific preference for any particular size project. PG&E will consider the market value of the energy, and the viability of the project. PG&E will also consider counterparty concentration (see page 44 of the protocol).

Q3: Does PG&E prefer to treat microgeneration ( ................
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