2004 Renewables RFO Announcements and Updates

(updated as of August 19, 2004)

1. Revenue Calculator (July 26, 2004)*

(*NOTE: THIS VERSION OF THE REVENUE CALCULATOR HAS BEEN UPDATED. PLEASE REFER TO VERSION v.3 - ITEM 2 BELOW).

Contrary to Section VII.B.3 on page 11 of the Solicitation Protocol, the output of the Revenue Calculator (Attachment E) does NOT need to be submitted to PG&E; and Participants are not required to submit any part of the Revenue Calculator as part of their Offers to PG&E. The Revenue Calculator is solely for illustrative purposes and is strictly for the Bidders’ confidential use.

The Revenue Calculator has been updated (Version v.2 has been posted on the website). Version v.2 makes one modification to the original calculator: TOD hours for year 2029 have been changed. Changed values are found on the sheet ‘Energy Rev Calcs’, cells J421:L432. If you did not perform calculations for year 2029, the calculations and results would remain unchanged from the original version.

2. Revenue Calculator (August 2, 2004)

The Revenue Calculator (Version v.3) has been updated and posted on the website. Version v.3 makes one material change to the original calculator: Baseload Product, Performance Requirements and applicable Performance Penalty amounts in Period C (February thru May, October & November) are measured over the entire Period C-- per Section 8.5 of the Form of Unit Firm Confirmation. The calculations that have changed are found on the worksheet ‘Energy Rev Calcs’, cells C70:AD81. If you did not perform calculations for a Baseload product or if you had assumed that your project would exceed the applicable Period C Performance Requirements in each Period C month, then your calculations and results would remain unchanged from the earlier versions.

Participants with an As-Available product should note that the following sentence was added to the ‘Assumptions’ worksheet: “For the As-Available product, calculated revenues assume no ‘Excess Delivered Energy’ (see Section 8.4 of the As-Available Confirmation).”

3. Pre-Bid Conference (August 4, 2004)

The Pre-Bid Conference was held on July 28, 2004. The Bidders Conference Presentation has been posted on the website. The Question and Answer section reflects Q & As asked at the Conference.

4. Corrections to Attachments to Protocol: Attachment H-Form of Master Power Purchase & Sale Agreement, Attachment IA-Form of As-Available Confirmation, and Attachment IB-Form of Unit Firm & Dispatchable Confirmation (August 9, 2004):

PG&E has corrected certain provisions in each of the Form of Master Power Purchase & Sale Agreement and both of the Forms of Confirmation. The corrections are listed below as well as updated on the webiste for your convenience. The changes appear in each of the relevant documents in bold lettering.

Correction to Attachment H to Protocol, Form of Master Power Purchase and Sale Agreement – In the first sentence of Section 3.7(a) replace “Buyer” with “Seller.” The corrected sentence reads as follows: "Seller shall maintain a complete and accurate log of all material operations and maintenance information on a daily basis."

Correction to Attachment IA to Protocol, Form of As-Available Confirmation – In the third sentence of Section 2, replace “Seller” with “Buyer.” The corrected sentence reads as follows: "The Initial Energy Delivery Date shall not occur until a date on or after the Commercial Operation Date, Buyer shall have received Performance Assurance in accordance with the relevant provisions of Article 8 of the Master Agreement, as applicable, and all of the applicable Conditions Precedent in Article 11 of the Master Agreement have been satisfied.”

Correction to Attachment IB to Protocol, Form of Unit Firm and Dispatchable Confirmation –

  • a. In the third sentence of Section 2, replace “Seller” with “Buyer.” The corrected sentence reads as follows: "The Initial Energy Delivery Date shall not occur until a date on or after the Commercial Operation Date, Buyer shall have received Performance Assurance in accordance with the relevant provisions of Article 8 of the Master Agreement, as applicable, and all of the applicable Conditions Precedent in Article 11 of the Master Agreement have been satisfied.”
  • b. In the second line of the third sentence of Section 8.6, replace “Seller” with “Buyer.” The corrected sentence reads as follows: “To the extent that Seller fails to satisfy the Performance Requirements specified above in Section 8.5, Seller shall be liable for and pay to Buyer “Performance Penalties,” as defined herein.”

5. Addendum I to Offer Form, Energy Production Data for As-Available Products (August 10, 2004)

For Participants submitting Offers to supply PG&E with an As-Available product, PG&E requests an additional set of data for the Offer. The Energy Production Data for As-Available Products has been posted on the website as an attachment to the Offer Form (Addendum I to Offer Form). The Energy Production Data for As-Available Products specifies the specific additional data that Participants will need to submit to PG&E to substantiate its energy production estimates, profiles, and project viability. These additional data requests are specified by generation technology for the As-Available generation technologies - wind, photovoltaic, and solar thermal.

Please submit the completed Energy Production Data for As-Available Products no later than Wednesday, August 25th at 5 PM (two days after the rest of the Offer is due to PG&E). As with the other submittals for the Offer, the Participant needs to send this submittal to PG&E in both hard copy and electronic form.

Please deliver two (2) hard copies via hand-delivery or overnight courier to:

RPS Solicitation
Power Contracts Department
Attention: Dave Landes
Room 1245 B, Mail Code N12E
Pacific Gas and Electric Company
245 Market Street
San Francisco, CA 94105
Tel: (415) 973-9326

The electronic documents should be sent to the following email address:
RenewableRFO@pge.com

6. Attachment D, Bid Offer Form, RFO Protocol (August 13, 2004)*

(*NOTE: THE BID OFFER FORM HAS BEEN UPDATED. PLEASE REFER TO ITEM 9 BELOW).

Attachment D to Protocol, Bid Offer Form, has been updated and posted on the website. In this revised version, a new sheet has been added. It contains instructions which will clarify how a Participant should complete certain portions of the Offer sheets. Additionally, on the Energy Pricing Sheet as well as the Dispatchable Sheet, we have (a) added additional cells requesting specification of “Type of Security”; and (b) “Delivery Point” field has been moved to reflect the fact that alternate Delivery Points are not acceptable variations for a single Offer, which is consistent with the terms of the Protocol. A Participant offering two Delivery Points, must submit two separate Offers (each up to eight allowable variations) with two separate Bid Deposits, equal to $5/kW of the Contract Capacity.

7. PTC Announcement (August 13, 2004)

PG&E has updated its instructions for incorporating PTCs into price offers to reflect federal legislation developments since the July 28th Bidder’s Conference as follows.

Solely for the purpose of evaluating Offers on a comparable basis, PG&E requests that Participants refer to HR 4520 www.congress.gov/ as passed and agreed to by the U. S. Senate on July 15, 2004 and assume that (a) inflation adjustment credits are excluded; and (b) the restated credit and in-service dates applicable to the technology offered are as specified therein. PG&E cannot offer any assurances as to whether or not the PTC is extended or the form it may take in any extension for the purposes of the RFO.

8. Attachment D, Bid Offer Form, RFO Protocol (August 16, 2004)*

(*NOTE: THE BID OFFER FORM HAS BEEN UPDATED. PLEASE REFER TO ITEM 9 BELOW).

Attachment D to Protocol, Bid Offer Form, has been updated. The Generation Profile Sheet has been revised to correct some identified errors. Specifically, the contract information at the top will now be pulled from the Energy Pricing Sheet. Additionally, years 2026 through 2035 have been added to allow for Contracts extending beyond 2025. For Contracts starting later than 2005, please input zeros in the years prior to the start date of the Contract.

9. Attachment D, Bid Offer Form, RFO Protocol (August 18, 2004)

Attachment D, Offer Form, to the Protocol has been revised. In this August 18, 2004 version, there is one material change to the prior version; this change is described below in # 6. For clarity, we have also listed below in # 1 – 5 revised descriptions of the changes that were initially contained in the August 16th version of the Offer Form (and are thereby incorporated into this current updated version).

1. A new worksheet titled “Instructions” has been added. This worksheet contains instructions that clarify how a Participant should complete certain portions of the Offer Forms.

2. On both the “Energy Pricing” worksheet and the “Dispatchable” worksheet, we have added cells (see C27 and F28 on the Energy Pricing worksheet and C30 and G31 on the Dispatchable worksheet) requesting Participants to specify the “Type of Security” for both the Performance Development Security and the Performance Assurance (so that if a Participant is proposing different forms of collateral (e.g. cash or letter of credit) for the two types of credit, the Participant can specify these two different forms of collateral).

3. On both the “Energy Pricing” and the “Dispatchable” worksheets, the data entry field for the term “Delivery Point” has been moved to reflect the fact that alternate Delivery Points are not acceptable variations to a single Offer with a single Bid Deposit. The allowable variations to a single Offer appear in the text box (appearing in the range of cells A22:G29 on the Energy Pricing worksheet and A25:I32 in the Dispatchable worksheet). The terms and conditions for these Offer variations are specified on page 5 of the Solicitation Protocol in Section IV.B: Offer.

4. The Generation Profile Sheet has been revised such that the contract information at the top will now be populated automatically with the information from the Energy Pricing Sheet.

5. On the Generation Profile worksheet, the years 2026 through 2035 have been added to allow for contracts extending beyond 2025.

6. The Energy Pricing Sheet has been revised to automatically input the Contract Year Start Dates and Contract Year Stop Dates, based on the values that Bidders enter for the Guaranteed Commercial Operation Date and Delivery Term.

10. Reminder completed Offers and Bid Deposits are due to PG&E no later than Monday, August 23rd, 2004 at 2PM Pacific Prevailing Time (PPT). (Announcement Date: August 18, 2004)

This announcement is a reminder that the Offer submittal date is rapidly approaching. We emphasize that completed Offers are due to PG&E no later than Monday, August 23rd, 2004 at 2PM Pacific Prevailing Time (PPT).

As noted in the Solicitation Protocol, these Offers must be accompanied by a Bid Deposit. Participants must notify BOTH (1) Jack Foley via email at JRFC@pge.com or by calling (415) 973-0004 AND (2) Kenny Lock via email at KxLj@pge.com or by calling (415) 972-5188 PRIOR to submitting their Bid Deposit, in order to ensure a smooth transaction.

11. Questions and Answers Deadline (August 19, 2004)

PG&E will accept final questions for the "2004 Renewables RFO Questions and Answers" page of our RFO website no later than noon on Friday, August 20th. We have appreciated your questions (more than 40 questions to date) and hope that posting the questions and answers has been a benefit to all RFO participants. Starting on Monday we will need to focus all of our time and attention on the review and evaluation of Offers and will not be able to ensure timely responses to all RFO participants. Therefore, no additional questions will be accepted after the noon August 20th deadline. Every effort will be made to answer questions submitted by the August 20th deadline in a timely manner but we cannot guarantee responses prior to the 2:00 p.m. Offer submittal deadline on Monday, August 23rd. After the Offer submittal deadline there will be no further updates to the Q&A section. Any further updates will be in the "Announcements and Updates" section of the website.