2005 Renewables RFO Announcements and Updates

(Issued August 30, 2005)

1. Modified Attachments D, J, and K, Performance Assurance Clarification, and Bidders Conference Presentation (8/30/05)

Attachments D, J and K Modified for Ownership Offers (Revised August 30, 2005)

A new version of Attachment D, "Bid Offer Forms" has been posted. This Attachment has been revised to include a worksheet for collecting data for those Participants offering a Buyout Option and Turnkey option. Specifically, cells have been added for Participants to include a firm fuel cost (for applicable technologies), and firm O&M costs (See Ownership Info Tab, Cells B20 and B21). PG&E will look to the Bidder to contractually supply fuel and O&M services during PG&E's ownership. Thus, Bidders should provide firm yearly fuel and O&M costs, on a unit basis (e.g., $/MWH) for 20 years.
Attachment J, Term Sheet (Buyout Option) and Attachment K, Power Purchase and Sale Agreement Term Sheet (Turnkey Option) have been modified to incorporate the Fuel and O&M requirements and consequent credit support.

Performance Assurance Clarified

All Participants, including those offering a Buyout or Turnkey Option, will be required to post Performance Assurance. For the purposes of determining a Credit Score, Participants will be evaluated based on their ability to provide the amount of Performance Assurance offered per Table X.1. of the Protocol.
PG&E also reminds Participants that Offers containing a PPA with Buyout Option must be accompanied by a PPA offer with no Buyout Option.

Bidders Conference Presentation

The August 18, 2005, Bidders Conference Presentation and resulting Question and Answers 1-27 have been posted to the website.