2012 Request for Offers Seeking CHP Power Purchase Agreements

In accordance with the Qualifying Facility and Combined Heat and Power 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 & Electric Company (SDG&E) is issuing this 2012 CHP Request for Offers (“RFO”) to achieve its megawatt target (“MW Target”) and GHG Emissions Reductions Target, established and defined in the Settlement Agreement. This RFO solicits offers from owners and operators of CHP Facilities which are eligible energy generators (“Respondents”). By responding, Respondents are bound by the terms of this RFO.

Pursuant to the CHP Program Settlement approved by the California Public Utilities Commission (“CPUC”) on December 16, 2010 in [ Decision 10-12-035 ], SDG&E seeks to acquire a total of up to 160 MW of combined heat and power (“CHP”) nameplate capacity under Power Purchase Agreements (“PPAs” or “Agreements”) during the Initial Program Period (2011-2015) and 51 MW in the Second Program Period (2012-2020), both of which periods are defined in the [ Settlement Agreement Term Sheet ]. Through this RFO, the first of three solicitations to be held during the Initial Program Period, and various other procurement alternatives under the Settlement Agreement, SDG&E seeks offers to help meet its Initial Program MW Target of 160 MW by November 23, 2015.

This RFO is limited to existing, new, repowered, and expanded CHP facilities to seeking a CHP Pro Forma PPA with SDG&E and to existing CHP facilities that wish to change operations to convert the facility to a utility prescheduled generation facility. This RFO is not requesting bids for renewable energy credits, feed-in-tariff projects or other RPS procurement activities that exist or are being contemplated.

Latest Updates

March 14, 2012

• Initial Q&A has been posted

• Registration Form has been added
  please register by March 30, 2011

• Offer Form has been updated to reflect additional Curtailment Options
  see ‘Contract Pricing’ tab

• RA Confirmation has been posted

March 7, 2012

• CHP Pre-Bid Conference Presentation (pdf)

Pre-Bid Conference: March 7, 2012
9:30am - 12:30pm

In-Person Registration starts at 9:00am

Energy Innovation Center
Cabrillo Room ‘C’, 4760 Clairemont Mesa Blvd.
San Diego, CA 92117
Phone: (800) 613-8970
Complimentary parking is available on site

Webinar

Dial-In Number (Toll Free): (866) 835-8908
Web Link: http://icsus.meeting-stream.com/030712_Sempra_1571344/

Participants will use this link to register and join the live event. After the live event, this link becomes the archive (recording) link.

Winning Respondents shall enter into a PPA for the energy and capacity from eligible resources that can meet the criteria described in the RFO document (provided below). Respondents may modify the applicable PPA submitted as part of their offer package to the extent such modifications add value to the offer. SDG&E discourages any material modification of the Pro Forma PPA.

Solicitation Documents

Respondents must submit at least two (2) bids and may submit up to ten (10) offers per facility to this solicitation by submitting the forms listed below. The failure to provide the listed information may result in the offer being deemed non-conforming and may disqualify the offer from further consideration.

• The RFO (pdf)

Required Forms and Documents

• Offer Form (xlsx) – Bidders are required to complete the Offer Form as well as the other applicable appendices. Please submit one per project
  Note:  Respondents must submit more than one pricing option and less than 10 pricing options per project.The Offer Form should be completed in conjunction with the PPA form of contract when provided. In order for a PPA Offer to be considered, it shall include two GHG Compliance Cost options as set forth in the pro-forma CHP RFO PPA or Utility Prescheduled Facility (“UPF”) PPA, as applicable.

• Project Description Form (doc) – Submit one per project. A written description of the generating facility as well as the following information: (i) Nameplate of each generating unit, heat balance diagrams, thermal host and use, contractual arrangements, and description of all interconnection systems.

• CEC-2843 Application Form – Submit a copy of respondent’s application to the CEC requesting qualification for the Combined Heat and Power System.

• Electric Interconnection Information – Please provide copies of completed studies (System Impact Study, Phase 1 interconnection study, WDAT, etc.), provide the name of the substation and interconnection voltage applicable to the facility as well as the nearest 230kV substation (if known) in the Offer Form (listed above).

• Credit Application (doc) - Submit one per project. A credit application will be required under all PPAs. Changes to terms and conditions will render the offer non-conforming and disqualify the project from further consideration.

• Supplier Diversity Information (doc) - 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.

• CHP Pro Forma PPA (doc) OR UPF PPA (doc)
  CHP Pro Forma PPA or UPF PPA include some terms that provide options (e.g. 12 year term).  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. SDG&E discourages extensive modification of the CHO Pro Forma PPA.
• RA Confirmation (docx)
  For Capacity Only Products (Resource Adequacy) please submit a redline version of the RA Confirmation form.

All offers must be uploaded to the RFO Website no later than 1 PM, Pacific Prevailing Time, on the CLOSING DATE (see RFO Schedule). The Project Description Form and Model PPA must be in Word or Word-compatible format (not in PDF). The Pricing Forms must be in Excel or Excel-compatible format (not in PDF). The copy of completed Interconnection Study and Site Control Documentation must be in PDF format.

View Full RFO Schedule

RFO Communication

All questions or other communications regarding this RFO should be submitted via e-mail to:

[email protected]

with copies to the Independent Evaluator at:

[email protected]

All questions and answers will be posted on this website anonymously. SDG&E will not accept questions or comments in any other form, except during the pre-bid conference. Respondents are encouraged to check this RFO Website periodically for updates, notices, and postings.

Pre-Bid Conference

SDG&E will hold one pre-bid conference on March 7, 2012 in San Diego, California and will be available via webinar.

Participation in the pre-bid conference is NOT mandatory in order to submit an offer. Please monitor this website periodically as the venue will be posted as soon as arrangements are finalized. Please limit participation to two representatives per company.

By March 2, 2012 any potential Respondent interested in attending a pre-bid conference should send an email to:

[email protected]

The email should include the following information:

• Company name

• Attendees' names, titles and contact information

• Facility Name & Nameplate Capacity (MW)

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 on the RFO Website and upload the offer. To register, Respondents must fill-out and email an RFO Registration Form (available from the RFO Website) to:[email protected]. 

SDG&E will process the form and provide the interested party instructions necessary to upload offers.  A username/password combination will be issued allowing access to the offer upload link. All offers must be uploaded to the RFO Website no later than 1 PM, Local 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 inbox by 3:00 PM., Local Prevailing Time, on the Closing Date.  If the Respondent encounters technical difficulties with both the uploading process and the RFO inbox, they should provide evidence of such difficulties (e.g. a screen shot of the error message or a “sent email” notice with a time stamp before 3PM. on the Closing Date) and submit USB Thumb Drive or one CD of the bid package to SDG&E and the Independent Evaluator at the addresses below within 3 business days following the Closing Date.

San Diego Gas & Electric Company

Electric and Gas Procurement Department
Attn: 2012 CHP RFO
8315 Century Park Court, CP-21D
San Diego, CA 92123-1548

Independent Evaluator

Michael Katz
Van Horn Consulting
28 Brookdale Ct.
Lafayette, CA 94549

RFO Schedule

The following schedule and deadlines apply to this RFO. SDG&E reserves the right to revise this schedule at anytime and at SDG&E's sole discretion. Respondents are responsible for accessing the RFO website for updated schedules and possible amendments to the RFO or the solicitation process.