2004 Long Term RFO: Announcements and Updates

4/25/05 Appendix B Modified

A new version of the Appendix B: Form of Letter of Credit has been posted. The revised Form can be found at

4/22/05 Appendix A Modified

A revised version of the Appendix A: Long Term Request For Offers Agreement for both Facility Ownership and Power Purchase has been posted. Note only items C and E of Appendix A have been modified.

4/25/05 Recent Versions

Please ensure that the most recent versions of the forms and appendices (those posted on the website as of April 25) are used in any communication to or in any response to the PG&E Long Term Request For Offers.

4/19/05 PPA Term Sheet Modified

A new version of the PPA Term Sheet has been posted. Attachment 3 of the Term Sheet has been modified. The revised term sheet can be found at Appendix D, Power Purchase Agreement Term Sheet (revised 4/18/05)

4/19/05 Format of Electronic Responses

In providing responses to the Long Term RFO, bidders must provide electronic copies that are consistent with the format and software of the original files--Microsoft Word and Microsoft Excel. Each appendix should be submitted as a separate file. A complete set of documents should be submitted for each variation or configuration proposed.

2/23/05 Humboldt Power Plant Site Visits

Participants interested in submitting an Offer for the Humboldt Bay Power Plant Replacement, who wish to arrange a visit to the site, should contact Mark Smith, Engineering Manager at the Humboldt Bay Power Plant at (707) 444-0844.

3/21/05 Updated RFO Issued

Pacific Gas and Electric Company has issued an updated Request for Offers (RFO) for long-term electric supply, as part of the resumption of its long-term procurement process which was temporarily delayed in January. The submission deadline for initial offers is April 27. The RFO solicits offers for both Facility Ownership and Power Purchase alternatives. PG&E has conformed its review process to satisfy the requirements contained in the California Public Utilities Commission (CPUC) long term procurement decision, issued in December 2004. Most of the changes to the RFO result from the CPUC decision, and PG&E’s specific request for offers to replace generation from its Humboldt Bay Power Plant in Eureka, California. As announced last month, as part of the resumed RFO process, PG&E is requesting offers to replace the 135 megawatt fossil fueled generation facilities at the Humboldt plant. Any interested party may view current information concerning this RFO on the utility’s Website, at: www.pge.com/suppliers_purchasing.

1/14/05 Impact Of Mirant Settlement On The Long-Term RFO

On January 13, 2005, the California Attorney Generals Office, The California Public Utilities Commission, PG&E and others announced that a settlement has been reached resolving overcharges and market manipulation claims from the sale of electricity by Mirant Corporations California operations. One component of the Mirant settlement involves the transfer to PG&E of Mirants partially-constructed 530 MW Contra Costa Unit 8, which may be completed and operated by PG&E on a cost of service basis. Under the terms of the settlement, PG&E will submit to the CPUC an application through which the Commission will decide whether PG&E should proceed with the acquisition of Contra Costa Unit 8 or, alternatively, obtain alternate compensation from Mirant as defined in the settlement agreement. The application is expected to be filed in the second quarter of 2005. Given the uncertainty as to whether the Contra Costa Unit 8 option will be approved, PG&E does not intend to modify its existing need assessment or the scope of the Long-Term RFOs. PG&E is, however, evaluating whether to request in the auction an option to defer by one to two years the on-line operations date associated with a portion of its stated 2010 need for load-following resources. PG&E anticipates that it may be in a position to resume the RFO process as soon as March 1.

10/8/04: Electric Transmission Proxy Costs Available

The Electric Transmission Proxy Costs for interim Offer evaluation, referred to on page 19 of the RFO, are now available. The link to this information is located in the "Transmission Related Information and References" section of either of the two RFO web pages: 2004 Long Term RFO - Power Purchase or, 2004 Long Term RFO - Facility Ownership