Request For Energy Proposal

REQUEST FOR INFORMATION FROM PROVIDERS OF

WHOLESALE ELECTRIC POWER, CAPACITY, ENERGY & OTHER RETAIL

SERVICES

 

 

A wholesale purchaser of electric energy (customer) in the ECAR control area desires to identify and procure potential suppliers of electric power (providers) for the purpose of subsequently extending invitations to bid for wholesale power supply; and acquire information and ideas for the purpose of identifying parties that may have an interest in developing a strategic relationship to pursue local/regional opportunities in a newly deregulated retail electric market. The intent of this Request for Information (RFI) is fivefold:

 

  • to identify at an early stage, those organizations or entities that may be responsive to an RFP for power supply process, and

 

  • to determine from prospective providers the type of information that is desired to make an RFP for power supply efficient and effective for both provider and

 

  • to identify opportunities and ideas for developing a competitive retail strategy

 

  • to identify those organizations or entities that will be responsive to openings for the creation of a strategic alliance to pursue opportunities of the newly deregulated retail electric market, and

 

  • to determine from prospective proposers the type of information that is desired to make discussions efficient and effective for both parties.

 

At the time a formal Request for Proposal (RFP) is released, direct announcements will be provided to those providers who have expressed an interest in proposing wholesale power supply options and who are, or will be, in a position to respond.

 

Also, at the time a mechanism for discussion is established, direct announcements will be provided to those parties that have expressed an interest in entering discussions regarding a strategic alliance and that are, or will be, in a position to respond.

 

The Customer will use the information gathered through the RFI process to assist it in determining if it is feasible and beneficial to enter into a strategic relationship as it plans for retail service to end-use consumers.

 

Confidentiality Statement:

Should any specific information requested in this RFI be considered by the provider as sensitive or confidential, the provider should so indicate in its response.

 

Nature of Wholesale Customer:

The wholesale purchaser of power is a municipally-owned electric utility with a monthly peak demand in the range of 30 to 50 MW and a minimum load of 20 MW. Annual energy purchases are in the order of 250 GWH. The customer can produce about ten percent (10%) of its peak load through self­owned generation that can be dispatched for peak shaving, peak management, off-system sales, or for other purposes such as emergency standby generation. The customer currently receives purchased power at transmission voltage. The customer will be seeking one or more power supply arrangements that will result in the customer's full requirements being met through wholesale power purchases and continued use of self-generation. Furthermore, the customer intends to seek one or more strategic alliances that will enhance the customer's competitive position in the local/regional retail market.        

 

General Instructions:

Responses to this Request for Information should be received at the below address no later than 5:00 PM on Month_______________Date____, Year_____. Responses to the RFI should adhere to the specifications contained herein.

 

Send a copy of the response that should be submitted to:

RFI Response

Symmetry Device Research, Inc. 2278 Arbor Avenue Suite #234

Hayward, California 94541-4894

Phone:  (510) 491-3264

Fax:      (510) 887-0993

 

Any questions concerning interpretation of the RFI should be submitted in writing or by fax.

 

Responses to each enumerated request should be clear and unambiguous. Each response should be identified by the complete request number, (e.g. "1.a."). All responses should be in the form of a descriptive statement, either giving the response directly, or clearly referring to an appropriate attachment. Any attachments or auxiliary information submitted as a response to any of the enumerated requests should be clearly identified as to which request they are intended to satisfy.

 

Not a Request for Proposal or an Offer to Purchase:

This Request for Information is not a Request for Proposal for electric power supply or an offer to purchase electric power or other services. Symmetry Device Research, Inc. reserves the right to modify or withdraw from the information gathering process described herein at any time for any reason. No rights shall be vested in any party, individual, or entity by virtue of its preparation to participate in, or its participation in, such process. Symmetry Device Research, Inc. or its client makes no guarantee that discussions will proceed or that an RFP will be issued as a result of the RFI process. Symmetry Device Research, Inc. reserves the right to waive any formalities in the responses received or to extend the time for response upon written or faxed request.

 

Information Requests Capacity:

 

General

  1. Please provide contact information:
    1. Name of provider
    2. Principal contact person
    3. Title of principal contact person
    4. Street address
    5. Mailing address
    6. Phone number
    7. Fax number
    8. E-mail address
    9. Legal status of provider (e.g., corporation, limited partnership, etc.)

 

  1. Provide a brief history of the provider. This history should contain, but not be limited to, the following information:
    1. Principals of provider and other corporate organizational information
    2. Date provider began producing and/or marketing wholesale electric power
    3. Date provider began producing and/or marketing electric power and/or providing retail services
    4. Number of years provider has been in business

 

  1. Please indicate any affiliated organizations, such as parent companies, subsidiaries, joint ventures, etc.

                     

  1. Please indicate the primary role the provider would seek to fulfill in establishing a wholesale power Please list any retail services offered other than electric power, such as electric transmission, natural gas, telecommunications, metering, billing, demand side management, financial, fuel hedging, fuel management services, or other service (please specify). 
    1. Provider will own or have direct physical control over generating
    2. Provider will take title to and resell electric power produced by
    3. Provider will facilitate transactions between buyer and seller, but will not take title to the power,
    4. Other power marketer (please describe).

 

  1. If applicable, provide the date and the FERC docket number in which the provider received FERC approval to act as a Power Marketer, or the date an application for Power Marketer status was filed at Please specify the services or products that the provider may offer as part of a strategic alliance, or other possible areas of mutual benefit for the parties.

 

  1. To further demonstrate the provider's ability to successfully arrange and manage wholesale power contracts, please provide information regarding wholesale power wheeling arrangements that the provider has been successful in These references will not be contacted until an RFP is issued and the responder has officially identified a contact person as an RFP reference. (Optional) To further demonstrate the provider's ability to successfully offer retail services and/or develop strategic alliances, please provide information regarding other strategic retail alliances or partnerships that the provider has been successful in establishing. These references will not be contacted until discussions commence and the responder has officially identified a contact person as a reference. The information provided should include, but not be limited to, the following:
    1. Identify the wholesale electric customer or strategic partnership
    2. Services offered under the agreement
    3. Other pertinent information (magnitude, type of agreement, date agreement was instituted, term of the agreement, )

 

  1. Is the provider currently involved in the retail marketing of electric power? If not, does the provider have plans to market electric power on a retail basis?

 

Questions Regarding the Form of an RFP and a Strategic Alliance:

  1. It is envisioned that an RFP will be released in the fall of How much time will you as a power provider require to prepare a proposal? Is thirty days sufficient?

 

  1. It is envisioned that discussions regarding retail services and a strategic alliance will begin in the fall of _____. How much time will you as a provider require to prepare for discussions? Is thirty days sufficient?

 

  1. Please provide information on any general terms and conditions or other contract elements that you as a power provider desire in an RFP for wholesale power

 

  1. Please provide general guidance and information on any issues or terms and conditions that you desire to be discussed regarding a retail strategic alliance.

 

  1. Indicate electronic means (if any) for updating the information provided in response to this Please include the provider's Internet WWW address (if any).

 

  1. If the provider is a generator (producer) of electricity, please respond to the questions found on Attachment Below.

                           

For Providers Who Have Direct Control of Generating Resources:

  1. Please provide a list of the electric generating plants owned or under the control of the This list should include, but not be limited to:
    1. Name of plant
    2. Location of plant
    3. Output ratings (MW) of each generating unit
    4. Fuel source(s) of generating units
    5. Transmission system and NERC reliability control area to which plant is connected

 

  1. Indicate the total capacity (MW) controlled by the provider (currently owned or contracted).

 

                    

 


 

REQUEST FOR PROPOSAL

PROVISION OF DIRECT ACCESS ELECTRIC SERVICE

 

 

Robert F. Driver Building, Ltd, a real estate management business located in San Diego, California, is seeking proposals from providers of direct access electric service.

 

Service Offerings:

Respondents to this Request for Proposal (RFP) are requested to furnish written price quotations for provision of direct access electric supply. Price quotations must be for firm, full requirements electric supply and include clear indications of the type of pricing plan offered and major terms of the service offering. Required elements for evaluation of the price quotation and terms are indicated on Appendix A Related forms for basic contracts and term sheets for the service offering must be attached to the response to this RFP.

 

Background and Qualifications:

Each respondent is required to furnish evidence of its qualifications to provide direct access electric service and general information related to its business practices. At a minimum, specific answers to all questions in Appendix B must be furnished. Additional written information will be accepted from the respondent. Marketing literature also will be accepted; however, a specific question should not be answered with “see attached literature”.

 

Electric Load Information:

Electric service for the business is provided at one metered location, at 1620 Fifth Avenue, San Diego, California. Historical load and billing information for the account is summarized on Appendix C. The Utility Distribution Company for the electric service is San Diego Gas & Electric Company (SDG&E).

 

Provision of Responses and Seclection:

All replies to this RFP must be signed by a person of authority with the respondent. All replies must be sent by mail or courier service and received no later than Month________ Date___ Year_____. Replies to this RFP in the form of fax or e-mail will not be accepted. All replies will be held in confidence and evaluated expeditiously, with a short list of potential suppliers selected on or before Month________ Date___ Year_____. It is the intent of the customer that it will enter into detailed discussions with this short list of potential suppliers, with the aim of selecting one of those respondents for negotiation of a contract for provision of direct access electric service. The meter reading date early in the Month ________ Year_____ is targeted for commencement of the direct access service.

 

All inquiries and responses are to be directed exclusively to Driver’s consultant managing this RFP:

Darwin E. Richards

Chairman & CTO

Undercurrents Energy a Subsidiary of SDRI

Symmetry Device Research, Inc. (SDRI)

22078 Arbor Avenue Suite #234

Hayward, California 94541-4894

Phone/Fax: (510)-491-3264; (510)-887-0993

E-mail: darwin_richards@hotmail.com

 

 

APPENDIX A: PROPOSED PRICE QUOTATION AND TERMS OF DIRECT ACCESS ELECTRIC SERVICE FIRM, FULL REQUIREMENTS

 

Respondents should select for proposal one or more of the pricing structures set forth below:

 

  • Discount from bundled PX Energy Credit appearing on direct access bill
  • Discount from commodity portion only of PX Energy Credit
  • Discount from total electric bill
  • Fixed price
  • Share-the-Savings
  • Other (Describe)

 

Proposed pricing levels for each structure should include detailed formulae for and elements of their calculation, levels of discounts, any applicable caps, floors or ceilings, on-off-peak pricing splits, and any adders such as for scheduling coordination, meter data management services, DASR submission, etc.

 

Using the monthly historical load data furnished in Schedule C, display the hypothetical annual cost of the proposed pricing structure(s). For structures involving discounts from levels of PX price, use an assumption of unconstrained PX prices of 2.5 cents/Kwh on-peak and 1.5 cents/Kwh off-peak, prior to discount. Clearly indicate assumptions for each non-commodity component included in the proposal, if applicable, such as for ISO/PX uplift, unaccounted for energy, imbalances, etc. Do not include any assumption for costs of congestion management. For any proposal involving a share-the-savings structure, clearly indicate assumptions for indices against which savings are to be calculated, as well as the respective percentage split in savings to the customer and the ESP.

 

Major terms and conditions of the proposed service offering(s) not related to price may be set forth either separately in response to this request, or may be noted as included in contract forms and term sheets. Related contract forms and term sheets for the proposed service offering(s) must be attached to the response, regardless whether the major terms and conditions not related to price are set forth separately.

 

 

APPENDIX B: BACKGROUND AND QUALIFICATIONS OF RESPONDENT ELECTRIC SERVICE PROVIDER (ESP) AND GENERAL INFORMATION

 

Business Organization:

 

  1. When was the ESP established? What is the form of its organization (corporation, LLC, LP, etc.)? What is the registration number for the business in the State of California?

 

  1. What is the ESP’ s Dunn’s number or identifier for other credit rating agency?

 

  1. Is the ESP a marketer (takes and transfers title), aggregator, or broker for this transaction?

 

  1. If the ESP is an aggregator or broker, who will be the other parties to this transaction?

 

  1. Provide a description of the affiliations of the ESP (parent, partners, subsidiaries, etc.).

 

  1. Provide a basic description of the ESP’s operations, to include approximate number of people and in what functions they are engaged.

 

  1. Does the ESP or its affiliate(s) also furnish natural gas commodity? Petroleum products?

 

CPUC Registration:

 

  1. Provide the ESP’s CPUC Registration Number. If not registered, explain why.

 

  1. Has the ESP’s registration ever been suspended by the CPUC? If suspended, for what reason? Is this suspension still in effect?

 

  1. Does the ESP currently comply with all consumer protection standards mandated by the CPUC in D.98-03-072 related to proof of financial viability and technical and operational ability? If not currently in compliance, does it intend to comply? If it does not intend to comply, why not?

 

  1. Provide copies submitted to the CPUC, or in their current draft form, of the ESP’s Standard Service Plan and Section 394.5 Notice, as well as the ESP Registration Application and attachments currently on file with the CPUC, or in its current draft form in response to the requirements of D.98-03-072.

 

  1. Does the ESP currently have any customer complaints lodged against it with the CPUC? If so, provide a copy of each complaint.

 

Primary Market Focus:

 

  1. What is the primary customer focus of the ESP — residential, institutional, commercial, industrial and/or agricultural?

 

 

  1. Does the ESP have a primary geographic focus in California — North, Central, South?

 

Customer Service:

 

  1. Does the ESP have a headquarters or other physical presence established in Alameda County, such as a marketing office?

 

  1. Does the ESP have a Customer Service capability? What is it? How does the ESP intend to service this account?

 

Trade Associations:

 

  1. List any memberships in energy-related associations or trade groups.

 

  1. Is the ESP or its affiliate a member of the Western Systems Power Pool (WSPP)? Western Regional Transmission Association (WRTA)? Western Systems Coordinating Council (WSCC)?

 

Tax Matters:

 

  1. Has the ESP received certification from the California Board of Equalization for collection and remittance of the State Energy Surcharge? Is the ESP in good standing with the BOE? Provide BOE registration number.

 

  1. Has the ESP received certification from or is it registered with the local taxing authorities for collection and remittance of any local franchise fees or other applicable fees and taxes related to this transaction? Is the ESP in good standing with the local taxing authorities? Provide registration number(s) or other identifier(s) for the local jurisdiction(s) related to this transaction.

 

Renewables Certification and Supply:

 

  1. Is the ESP a certified renewable energy provider with the California Energy Commission? If so, what is the registration number?

 

  1. Does the ESP intend to service this transaction from a portfolio of renewable energy sources?

 

  1. What is the approximate percentage mix of the ESP’s supply portfolio (bilateral in-state, bilateral out-of-state, Power Exchange, own generation, etc.)?

 

Wholesale Electric Activity:

 

  1. Does the ESP or its affiliate have experience in buying/selling in wholesale electric markets in California or the West? If so, what is the current estimated annual volume (Mwh) of wholesale electric transactions in California or the West, as reported to the FERC?

 

  1. Is the ESP or its affiliate a FERC-certified wholesale electric power marketer? Date of certification?


UDC Agreements:

 

  1. Does the ESP have in place an executed Direct Access Service Agreement with? ___________________ Date of Agreement?

 

  1. Does the ESP currently provide direct access electric service to other customers in ___________________ territory?

 

  1. If not, does it have any pending Direct Access Service Requests (DASRs) with ___________________?

 

  1. How many DASRs (by type - pending, active and rejected) does the ESP currently have with ___________________?

 

  1. Does the ESP have in place executed Direct Access Service Agreements with PG&E and SCE? Dates of Agreements?

 

  1. Does the ESP currently provide direct access electric service to other customers in the service territory of PG&E? SCE?

 

  1. If not, does it have any pending DASRs with PG&E? SCE?

 

  1. How many DASRs (by type - pending, active and rejected) does the ESP currently have with PG&E? SCE?

 

Billing and Credit:

 

  1. What customer billing option (dual, ESP consolidated, UDC consolidated) does the ESP intend to use for this transaction?

 

  1. Is this (one of) the option(s) selected for use in the ___________________ contract? If not, has the ESP arranged to have this other option included in the ___________________ contract?

 

  1. If dual or ESP consolidated billing is used for this transaction, will the ESP perform the billing function itself, or does it intend to use a third-party billing provider?

 

  1. Does the ESP or its third-party billing provider also handle consolidation with electric of other commodities or utility services, such as natural gas, telephone, water, etc.?

 

  1. Provide a copy of the billing form that will be used for this transaction.

 

  1. How does the ESP prefer to receive payment — by check or electronic funds transfer?

 

  1. Describe the customer credit standards used by the ESP. If required, what form(s) of customer security does the ESP normally accept?

 

Scheduling Coordination:

 

  1. Who will be the Scheduling Coordinator for this account? Does the ESP have a signed agreement in place with the SC, or will the ESP act as its own SC?

 

  1. Is the SC certified with the California Independent System Operator (ISO)?

 

  1. Is the ESP or the SC a certified Participant in the California Power Exchange (PX)? In the Automated Power Exchange (APX)?

 

  1. Does the ESP intend to directly charge the customer for Scheduling Coordination services, or will this be included as part of the quoted price? If directly charged in addition to the quoted price, how would this charge be made or calculated?

 

  1. Does the ESP intend to directly charge the customer for the various charges from the ISO and PX such as congestion ancillary services, imbalances and uplift, or will these be included as part of the quoted price? If directly charged in addition to the quoted price, how would each of these costs be allocated to the customer?

 

Load Data and Pre-Scheduling:

 

  1. What type of load data does the ESP require in order to prepare and maintain a Pre-schedule for this account?

 

  1. How would the ESP propose to obtain this data? What customer involvement would be required?

 

Meter Data Management:

 

  1. Who will be the Meter Data Management Agent for this account? Does the ESP have a signed agreement with the MDMA, will it default MDMA functions to the UDC, or will it act as its own MDMA?

 

  1. If non-utility MDMA services are to be utilized, has the MDMA or the ESP been certified to provide this service? Does the ESP intend to directly charge the customer for MDMA-related services, or would they be included in the quoted price? If directly charged in addition to the quoted price, how would these costs be allocated to the customer?

 

Automatic Meter Reading:

 

  1. Does the ESP have the capability by itself to sell, own, install, maintain, or read direct access electric meters? Through an existing relationship with an affiliate or a third-party Meter Service Provider (MSP)? Is the ESP or the MSP certified by the UDC to provide these services?

 

  1. If this account requires installation of a demand interval meter to become eligible for direct access electric service, and the ESP can provide this meter itself or through an affiliate or third-party MSP, what ownership and/or payment plan would be contemplated?

 

  1. If this account requires installation of a demand interval meter to become eligible for direct access electric service, would the ESP arrange for the UDC to change out the meter, and would the ESP offer some form of incentive to the customer for this to occur?

 

 

Energy Efficiency Services:

 

  1. Does the ESP have the capability by itself to provide energy efficiency services such as energy audits, lighting equipment retrofits, etc.? Through an existing relationship with an affiliate or a third-party? What are these services?

 

  1. What payment options are offered for such services?

 

Risk Management Services:

 

  1. Does the ESP offer any services that can be used by the customer to manage its supply and/or financial risk of the transaction? What are these services?

 

  1. What payment options are offered for such services?

 

Contact Information:

 

  1. Provide contact information about the person(s) in your organization that can respond to questions about your response to this RFP.

 

 

APPENDIX C: SUMMARY ELECTRIC LOAD INFORMATION

 

The attached spreadsheet displays the following monthly data for each of the latest twelve months, for the electric account that is the subject of this RFP:

 

Summer:

On-Peak Kwh

Semi-Peak Kwh

Off-Peak Kwh

On-Peak Demand Kw

 

Winter:

On-Peak Kwh

Semi-Peak Kwh

Off-Peak Kwh

On-Peak Demand Kw

 

Total Kwh:

Non-Coincident Demand Kw

Days in Billing Cycle

Load Factor (1)

Total Electric Bill $ (2)

 

Notes:

(1) Calculated as: LF = Total Kwh/(Highest Demand Kw x # Hours)

(2) Includes amounts for usage, demand, TOU customer charge, franchise fee, state energy surcharge and state regulatory fees.