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
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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
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.
| Generating Facility | CHP Facility ("CHP") | Utility Prescheduled Facility ("UPF") |
| Facility Vintage | New, Existing, Repowered, Expanded | |
| Maximum Term | 7 Years for Existing for Repowered, 12 Years for new and Expanded meeting Credit requirements (Section 3). | As Negotiated |
| PPA Type | CHP Pro Forma PPA | CHP UPF PPA |
| Nameplate | Larger than 5 MW | |
| Delivery Point | CAISO | |
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.
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The RFO (pdf)
Required Forms and Documents
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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.
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CEC-2843 Application Form – Submit a copy of respondent’s application to the CEC requesting qualification for the Combined Heat and Power System.
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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).
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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.
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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.
RFO Communication
All questions or other communications regarding this RFO should be submitted via e-mail to:
with copies to the Independent Evaluator at:
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:
The email should include the following information:
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Company name
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Attendees' names, titles and contact information
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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:chprfo@sdge.com.
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.
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No. |
Item |
Date |
|---|---|---|
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1. |
RFO Issued |
February 21, 2012 |
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2. |
Pre-Bidder’s Conference |
March 7, 2012 |
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3. |
DEADLINE TO SUBMIT QUESTIONS Question submittal cut-off date. Answers to all questions will be posted on the website no later than March 26, 2012 |
March 21, 2012 |
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4. |
DEADLINE TO REGISTER Those intending to bid must register to receive a username/password in order to upload electronic offers. |
March 30, 2012 |
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5. |
CLOSING DATE: Offers must be uploaded to and received by the RFO Website no later than 1:00 PM (Pacific Prevailing Time). |
April 6, 2012 |
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6. |
SDG&E Begins Bid Evaluation Process |
April 6, 2012 |
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7. |
DEADLINE TO SUBMIT E-Binder or CD Respondents submit to SDG&E one USB Thumb Drive or one CD. Respondents submit to the IE one USB Thumb Drive or one CD. |
April 13, 2012 |
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8. |
SHORTLIST NOTIFICATION SDG&E notifies Shortlisted Bidders |
May 23, 2012 |
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9. |
SHORTLISTED BIDDERS ACCEPTANCE/WITHDRAWAL Letter due from Shortlisted Bidders indicating:
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+10 Days after Shortlist Notification |
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10. |
SDG&E issues appreciation notices to unsuccessful Respondents |
+3 weeks after Shortlisted Bidders accept/withdraw |
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11. |
SDG&E commences with PPA Negotiations |
up to 24 weeks* |
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12. |
Submits Advice letters with PPAs to CPUC for approval |
+4 weeks after PPAs are negotiated and executed |
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* Negotiation time will vary depending on facility vintage and proposed contract terms and modifications. |
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Q1: Is SDG&E considering Capacity only products?
A: SDG&E will consider Capacity only (Resource Adequacy) products, but these products will be evaluated separately from the Pro-Forma and UPF Offers that have been received. SDG&E has uploaded a Resource Adequacy Confirmation onto the CHP website to allow for these products. The form has been uploaded to the RFO Website.
Q2: For a facility providing a hybrid combination of CHP must take and UPF Capacity, how is the required efficiency for the facility determined.
A: A hybrid offer (ie a CHP resource with limited dispatch capability) will be considered. The facility must comply with the eligibility set forth in the RFO Eligibility requirements. SDG&E will compare the efficiency of the “must take” resource to the efficiency of the settlement defined Double Benchmark resource to determine the GHG Reduction benefit. For the UPF portion (dispatchable portion) of the facility, SDG&E will assess the change in operation (from base load to dispatchable) in order to determine the GHG Reduction benefit. Please submit the hybrid combination as two separate bids and note that both bids are linked.
Q3: The CEC 2843 Application appears to establish eligibility for the AB 1613 feed-in-tariff which is only available to units < 20 MW. Our facility is much larger. Is this truly a requirement, or can we instead provide historical data?
A: If you do not have a copy or are not required to file the CEC 2843 Application, your bid will still be eligible. Please populate the Offer Form with historical data.
Q4: I could not find the link to the RFO Registration Form on the RFO website. Where can it be found?
A: The registration form has been uploaded to the website as of March 14, 2012 (Download Form). SDG&E will follow up with an username/password combination allowing access to the upload link.
Q5: Does the project have to be offered by the Operator or Owner? Can there be no transfer of Title to another company and then sale to SDG&E?
A: As long as SDG&E is entitled to all of the same protections that an owner/operator can offer, SDG&E will consider the marketer offer.
Q6: The Capacity Allocation Factors when applied to the formula is section 3(a) of the PPA Exhibit D yields payments very different than those obtained using SCE and PG&E Factors. Please explain how to determine the Capacity payment using the Capacity Allocation Factors listed in Exhibit D.
A: The steps listed below yield capacity payments in line with those calculated using SCE and PG&E factors.
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Populate a 4 TOD Period x 12 month matrix with appropriate values from the SDG&E table in the PPA.
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Create another 4 x 12 matrix with hours per TOD period per month. (We recognize that the number of TOD hours per month varies slightly from year to year.)
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Multiply the values in step 1 by values in step 2. For example, for the cell corresponding to January On-Peak multiply the factor 0.013237 by 63 hours.
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Divide each of the 48 results from step 3 by 100. After this step is performed the sum of the factors arranged in a matrix of 4 TOD periods by 12 months is 1.0.
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Use the results from step 4 in the monthly capacity payment calculations for each TOD period.
Q7: Under the Economic Curtailment participation section, SDG&E can only exercise curtailment of the facility during times with CAISO Market Prices fall below $0/MWh. What if we wish to offer curtailment when the CAISO Market price is something other than $0/MWh?
You may do so. SDG&E has updated the Offer Form to allow the Seller to set the Market price (If other than a $0/MWh price) at which SDG&E can curtail generation. If the Seller would like to offer curtailment at any price input “Mkt” into cell C123 of the ‘9. Contract Pricing’ tab.