Distribution Investment Deferral Framework Standard Offer Contract (“SOC”) Pilot

Products Solicited & Submittal Documents

SDG&E seeks to procure incremental in front of the meter DERs,* to defer planned distribution projects that meet needs that are more than two years in the future. 

This website provides an overview of the market solicitation. Respondents are strongly encouraged to download and thoroughly review the documents pertaining to the resource type(s) that the respondent is interested in providing, available below, to fully understand all aspects of this Pilot.

The planned distribution upgrade that will be offered in the year 1 SOC Pilot will be for the thermal need that is identified in the Grid Needs Assessment (“GNA”) and Distribution Deferral Opportunities Report (“DDOR”) for year 2025 as “GNA_2021_0002” and “DDOR_2021_0002.”  

See the second table in Appendix A (page 59 of PDF and page 19 of report) of SDG&E’s August 16, 2021 “2021 GRID NEEDS ASSESSMENT AND DISTRIBUTION DEFERRAL OPPORTUNITY REPORT OF SAN DIEGO GAS & ELECTRIC COMPANY (U 902 E).”  

2021 GRID NEEDS ASSESSMENT AND DISTRIBUTION DEFERRAL OPPORTUNITY REPORT OF SAN DIEGO GAS & ELECTRIC COMPANY (U 902 E)

The thermal need is for 0.86 MW during hours-ending 14-22 in the months of June through October in the year 2025.  There is no associated back-tie need.  

During the subscription period which opens on September 15, 2021, entities may offer to supply all or a portion of this capacity from In-Front-Of-the-Meter (“IFOM”) resources.  Behind-The-Meter (“BTM”) resources may not be used to support offers in the SOC pilot.  SDG&E prefers to meet the entire need from a single offeror; however, SDG&E will consider contracting with more than one offeror if doing so will provide ratepayer savings.

Entities will submit offers in the form of quantities (“MW”) that the offeror is willing to provide at the offeror’s specified percentages of the offer price cap.  The offer price cap, which is the one-year deferral value of the planned distribution upgrade, will be specified in $/kW-month.  Payments will be made on an equal basis after the end of each of the five need months.   

An entity may submit as many offers – quantities at percentages of the offer price cap (up to and including 100%) -- as it chooses.  SDG&E may select any, or all, of the offers submitted by an entity, and the entity must perform on all selected offers.  

SDG&E will select offers on October 15, 2021, at which point the subscription period is closed.  If the cumulative quantity of offers submitted is at least 90% of the need, SDG&E will tender the Technology Neutral Pro Forma (“TNPF”) contract to the selected offers for signature.**   SDG&E will provide two weeks for entities to return the signed TNPF contract and provide the information required by the contract.  Selected offers will be paid for the quantities indicated at the percentages of the offer cap that the offeror submitted.  

If signed contracts cumulate to less than 100% of the thermal need, SDG&E will initiate contingency plans to ensure grid reliability is maintained.

Pricing Sheet: The estimated total deferral value for deferring the selected project by one year in 2025 is $89,417. 

Cost Cap: The cost cap is $20.79/kW-month = $89,417 / (860 kW x 5 months of 2025)

Participation in this Pilot requires the completion of the Offer Form, TNPF Contract populated with required information specific to the proposed DER, and credit application. These documents are available via the links below.  Failure to provide the listed information may result in an offer being deemed non-conforming and thus may disqualify the offer from further consideration. Multiple offers are acceptable; the offeror must perform on all selected offers.***

Offer Form

TNPF Contract

Credit Application

SDG&E strongly encourages Diverse Business Enterprises (“DBEs”), “Women-Owned Businesses” or “Minority-Owned Businesses” or “Disabled Veteran Business Enterprises” as defined in G.O. 156, to participate in this RFO.  Furthermore, SDG&E strongly encourages developers to utilize DBEs during various stages of project development and construction.  As a part of G.O. 156, SDG&E will require developers to identify, verify and report their DBE contractors/subcontractor spending if any. 

Additional information on SDG&E’s DBE program can be found at our Supplier Diversity page  or at the CPUC website. 

* D. 21-02-006 sets forth the criteria for determining whether offered resources are “incremental.”

**  “When the 90% acceptance trigger is met, IOUs sign contracts with providers.”  Commission-adopted Energy Division staff proposal a p. 53.

*** Note: only one credit application and TNPF need to be provided if providing multiple offers.