SDG&E 2014 All-Source Request for Offers (RFO) Eligible Local Combined Heat and Power Purchase Agreements (CHP)

Description of the RFO

In accordance with Decision (“D.”)14-03-004 – Decision Authorizing Long-Term Procurement for Local Capacity Requirements due to Permanent Retirement of the San Onofre Nuclear Generation Station (the “Track 4 Decision”) approved on March 13, 2014, and the Qualifying Facility (“QF”) and Combined Heat and Power (“CHP”) Program Settlement Agreement and related documents (including the CHP Program Settlement Agreement Term Sheet) approved by the California Public Utilities Commission (“CPUC”) on December 16, 2010 in Decision 10-12-035 (collectively, the “Settlement Agreement”), San Diego Gas and Electric (“SDG&E”) is issuing its 2014 Combined Heat and Power (“CHP”) Request for Offers (“RFO”) to solicit offers (“Offers”) from owners and operators of CHP facilities and Utility Prescheduled Facilities (“UPF”) within the San Diego Local Subarea (as defined by the CAISO[1]). Additionally, resources procured through this RFO will count towards SDG&E’s CHP Program Settlement[2] goal. Under the CHP Program Settlement, SDG&E seeks to acquire a total of 160 MW of CHP name plate Capacity under Power Purchase Agreements (“PPAs” or “Agreements”) during the Initial Program Period (2011-2014) and 51 MW during the Second Program Period (2016-2020), both periods are defined in the Settlement Agreement. 

SDG&E is issuing this 2014 CHP RFO to help meet its Local Capacity Requirements (“LCR”) established in the Track 4 Decision (specifically, the Track 4 Decision authorizes procurement of a minimum of 200 MW of preferred resources[3] - 25 MW of which must come from energy storage) and to make progress towards its CHP Program Settlement goals. This RFO solicits offers from owners and operators of CHP and UPF facilities.

As authorized in the Track 4 Decision, SDG&E is seeking up to 775 MW from qualifying CHP facilities. CHP capacity acquired through this solicitation will also allow SDG&E to make progress toward its Initial CHP Program Period goal of 160 MW and potentially its Second Program Period goal of 51 MW.

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

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. Offer Form (xls). Credit Offer Form – Both the offer form and the credit offer form should be completed.
2. Project Description Form (doc)
3. Electric Interconnection Information

   Note: Please provide copies of completed studies, and provide the name of the substation and interconnection voltage applicable to the facility as well as the nearest substation in the Offer Form. 

4. CEC-2843 Application Form

   Note: Submit a copy of respondent’s application to the CEC requesting qualification for the Combined Heat and Power System

5. Credit Application (doc)

6. Supplier Diversity Information (doc) if applicable

7. CHP Pro-forma PPA

   CHP UPF Pro-forma PPA

Note: Submit up to one of each if respondent wishes to bid in the facility as both a base load and dispatchable resource. CHP RFO Pro Forma PPA Redline will be used for base load resources and the CHP Utility Prescheduled Facility PPA Redline will be used for dispatchable resources.

The Model PPA includes some terms that provide options.  Respondent should provide a redline of the Model PPA that reflects the attributes of their proposed project by selecting the correct options.  Terms that do not provide options are non-modifiable.

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).  

RPS 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 CHP 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 6.0 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.

Questions and Answers / FAQs

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 and 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 scheduled for 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 SDG&E RPS RFO event on PowerAdvocate® in order to submit an Offer. To register, Respondents must follow the instructions outlined in Section 7 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 Barbara.Sands@PAConsulting

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

[1] See the CAISO “Local Capacity Technical Analysis” – draft version for 2015 available at: http://www.caiso.com/Documents/DraftReport-2015LocalCapacityTechnicalAnalysis.pdf; final  version for 2014 located at: http://www.caiso.com/Documents/May1_2013-2014FinalReport-LocalCapacityTechnicalAnalysisR11-10-023.pdf To summarize, projects that interconnect within SDG&E’s service territory connecting to transmission or distribution facilities at a point that is electrically west of the ECO or Suncrest substations bidding as fully deliverable will meet this requirement.

[2] The CHP Program Settlement was approved by D.10-12-035 on December 21, 2010 and became effective on November 23, 2011 (when the conditions precedent were satisfied).

[3] 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