SDG&E 2014 All-Source Request for Offers Seeking Demand Response Resources (DR)

Description of the RFO

In accordance with Decision (“D.”) 14-03-004 – Decision Authorizing Long-Term Procurement for Local Capacity Requirements (“LCR”) due to the Permanent Retirement of the San Onofre Nuclear Generation Station (the “Track 4 Decision”) approved on March 13, 2014, San Diego Gas & Electric Company (“SDG&E”) is issuing its 2014 Local Capacity Requirement   Request for Offers (“RFO”) seeking Demand Response (“DR”) Resources.

SDG&E was authorized to procure between 500 MW and 800 MW of incremental local capacity by 2022 to meet local capacity needs stemming from the retirement of the San Onofre Nuclear Generation Station (“SONGS”).  SDG&E is authorized to procure at least 200 MW, and may procure up to the full 800 MW, of authorized additional capacity from preferred resources[1] of which at least 25 MW will come from energy storage. 

SDG&E has separately filed an application for Commission approval of a 600 MW bilateral contract with a Conventional resource, the Carlsbad Energy Center (A.14-07-009).  If approved, 600 MW of SDG&E’s need will be filled by this contract and SDG&E will be authorized to procure a minimum of 200 MW of preferred resources, including at least 25 MW of energy storage.  In this event, bidders shall be notified that 600 MW of the need eligible under this RFO has been filled.

Solicitation Documents

Forms are available on the RFO Website.  Failure to provide the required information may result in the proposal being deemed non-conforming and may disqualify the proposal from further consideration.

• The RFO document (pdf)

Required Forms and Documents

1. Demand Response Products Pricing Offer Form –Bidders must include in their Offer Form including proposed pricing (xls). Credit Offer Form – Both the offer form and the credit offer form should be completed.

2. Project Description Form (Attachment A) – please submit one per project (doc)

3. Redline forms of the Pro-Forma Agreement will NOT be required as part of the bid package.

4. Completed E3 Calculator

   1. DR E3 Tool - Factor Analysis_______

   2. DR E3 Tool – Reporting Template

5. Diverse Business Enterprise Subcontracting Commitment and Reporting Requirements (DBE) Form (Attachment C) – please provide a copy of certification documents received from the California Public Utilities Commission. An application can be made before submission of the offer and referenced in the offer (doc).

6. Credit Application for All Source RFO (Attachment D)   – please submit one per project. A credit application will be required under all PRO FORMAs. Changes to terms and conditions will render the offer non-conforming and disqualify the project from further consideration (doc).

The Project Description Form (Attachment A), Redlines to the Pro-Forma Agreement (Attachment B) and Credit Application for All Source RFO (Attachment D) must be in Word or Word-compatible format (not in PDF).  The Demand Response Products Pricing Offer Form and E3 Calculator must be in Excel or Excel-compatible format (not in PDF). The Diverse Business Enterprise Subcontracting Commitment and Reporting Requirements (DBE) Form Attachment C must be in PDF format.

All Offers must be uploaded to the PowerAdvocate® website no later than 1:00 p.m., Pacific Prevailing Time, on the CLOSING DATE (see RFO Schedule).  

DR RFO Schedule

The following schedule and deadlines apply to this RFO.  SDG&E reserves the right to revise this schedule at any time and in SDG&E’s sole discretion.  Respondents are responsible for monitoring the RFO Website for updated schedules and possible amendments to the RFO or the solicitation process.

RFO Communication

The RFO and all subsequent revisions and documents are available for download from the RFO Website (http://www.sdge.com/AllSourceRFO2014) and the 2014 Local Capacity Requirement Demand Response Resources RFO event on the PowerAdvocate® website.  Potential Respondents are responsible for monitoring the RFO Website and PowerAdvocate® for subsequent updates, notices and postings.

The RFO website contains RFO forms and documents, the RFO Schedule, and a Question and Answer forum.  All questions or other communications regarding this RFO must be submitted via email to [email protected] by the DEADLINE TO SUBMIT QUESTIONS as specified in Section 5.0 RFO Schedule.  SDG&E will not accept questions or comments in any other form, and will not respond to questions submitted after the DEADLINE TO SUBMIT QUESTIONS.

DR Questions & Answers

Outreach Event/Pre-Bid Conference

SDG&E will host three bidder outreach events.  The first event is scheduled for September 26, 2014 which will be an in-person event (with dial-in / webinar available for those that cannot attend in-person).  The second event will be a conference call / webinar only is scheduled for October 24th.  The third event will focus primarily on the demand response, energy efficiency and energy storage product types will be in-person (conference call / webinar available) and is November 10th. Participation in these events is NOT mandatory in order to submit an offer.

Please monitor the RFO Website for further details (such as conference presentation materials and final arrangements).  SDG&E will make efforts to notify bidders of outreach event details via e-mail as well as providing this information via the RFO Website.

Any party interested in attending these events should email the following information to [email protected]:

• Company name, and
• Attendees’ names, titles and contact information

RFO Announcements

Please check this website periodically as SDG&E will post all solicitation announcements, including scheduling changes or RFO amendments if any.

Register to Submit Offers

Any party interested in submitting an Offer must register to receive access to the 2014 Local Capacity Requirement RFO Demand Response Resources event on PowerAdvocate® in order to submit an Offer. To register, Respondents must follow the instructions outlined in Section 6 of this RFO, RFO Website and Communications. All Offers must be uploaded to the PowerAdvocate® no later than 1:00 p.m., Pacific Prevailing Time, on the CLOSING DATE (see RFO Schedule).  If Respondents encounter technical difficulties with the uploading process, they should provide evidence of such difficulties (e.g. a screen shot of the error message) and email the bid to:

The RFO mailbox: [email protected]

Carbon Copy (CC) to: [email protected]  and [email protected]

Emails shall be received by 1:00 p.m., Pacific Prevailing Time, on the Closing Date.

[1] Preferred Resources are defined in the Energy Action Plan – as updated in the Energy Action Plan II and 2008 update to the Energy Action Plan II in the loading order as follows: “The loading order identifies energy efficiency and demand response as the State’s preferred means of meeting growing energy needs. After cost-effective efficiency and demand response, we rely on renewable sources of power and distributed generation, such as combined heat and power applications. To the extent efficiency, demand response, renewable resources, and distributed generation are unable to satisfy increasing energy and capacity needs, we support clean and efficient fossil-fired generation.” – See the Energy Action Plan II, p.2 at: http://www.energy.ca.gov/energy_action_plan/2005-09-21_EAP2_FINAL.PDF