Independent Evaluator Request For Proposal (IE RFP) June 2013

Pacific Gas and Electric Company (PG&E) is a regulated investor-owned utility that provides natural gas and electric service to approximately 5.1 million electric customers and approximately 4.3 million customers. PG&E’s service territory stretches from Eureka in the north to Bakersfield in the south. Based in San Francisco, PG&E is one of the largest natural gas and electric utilities in the United States. For further information, please click on the hyperlink below:

http://www.pge.com/

In December 2007, the California Public Utilities Commission (CPUC) issued a decision directing the California investor-owned utilities (IOUs) to use an Independent Evaluator (IE) to monitor long-term resource solicitations that may involve affiliate, utility-owned or utility-turnkey bids and for all competitive solicitations seeking products greater than two years in length regardless of whom potential IE candidates may be. The CPUC requires the IOUs to use an IE to monitor:

• Renewable Portfolio Standard (RPS) solicitations and bilaterals,
• Competitive solicitations that seek energy products of two years or greater in duration, certain bilateral transactions, and contract amendments; and
• Competitive solicitations for power procurement involving affiliate transactions and IOU-built or IOU-turnkey bidders

In addition, PG&E may use an IE for additional procurement processes and/or electric energy and fuel related procurement products, even if not required to do so by the CPUC.

This Request for Proposal (RFP) is being issued to comply with the CPUC requirement above and is seeking qualified parties for PG&E’s pool of IEs.

Being included in PG&E’s IE pool is not a guarantee of specific work or projects. If and when PG&E selects an IE from its pool to monitor a specific solicitation, bilateral negotiation or contract amendment, PG&E and the IE will enter into a Master Service Agreement (MSA) at that time of official entrance into the pool. The MSA would incorporate PG&E’s requirements related to terms and conditions required as a consultant for PG&E. In addition, an IE will be required to sign both PG&E’s Non-Disclosure agreement (NDA) and the Declaration Regarding Conflict of Interest attached as Appendix 1 of this RFP.

Once an IE is added to PG&E’s IE pool, the IE (including the IE’s lead and sub-contractors) will be in the IE pool for a term not to exceed two years. Before the end of the two-year period, if an IE would like to be considered for the following two-years, the IE must submit a proposal in the subsequent Request for Proposal. The specific tasks the IE will perform will include, but shall not be limited to:

• Advise on the consistency of solicitation activities with the CPUC’s procurement-related rules and procedures and PG&E’s Commission-approved procurement authority.
• Assist in the development, design and review of Request for Offers. Promptly submitting any recommendations consistent with the objective of ensuring a competitive, open and transparent process, and to ensure that the overall scope of the solicitation process is not unnecessarily broad or too narrow.
• Provide recommendations concerning the precise definition of products sought and price and non-price evaluation criteria, so that all aspects of the products are clearly understood and all bidders may effectively respond to the solicitations, as applicable.
• Review the comprehensive quantitative and qualitative bid evaluation criteria and methodologies and assess whether these are applied to all bids in a fair and non-discriminatory manner. The IE will be provided access to PG&E’s personnel, modeling tools, meeting documentation in order to credibly evaluate the bid valuation and selection processes.
• Report on the outcome of a solicitation using the appropriate CPUC-approved IE Report Template, as may be amended from time to time.
• Monitor the solicitation, bilateral negotiation and/or contract amendment processes and promptly submit recommendations to PG&E’s management to ensure that no bidder has an information advantage and that all bidders or counterparties if applicable, receive access to relevant communications in a non-discriminatory manner. This task may include monitoring contract negotiations and/or keeping appraised of negotiation status and major issues.
• Provide presentations, as requested, to the CPUC staff or Energy Division, to PG&E’s management and to its Procurement Review Group (PRG) concerning the IE’s findings or status.
• Providing final written assessment and/or testimony concerning whether or not the solicitation, bilateral negotiation and contract amendment processes were open, transparent and fair and whether any bidder received material information that gave them a competitive advantage or disadvantage relative to other bidders.
• Perform other duties as may be further defined in subsequent relevant regulatory proceedings or required by PG&E’s senior management.

This RFP will be conducted using the PowerAdvocate Sourcing Intelligence platform (“PowerAdvocate”). All communications including, but not limited to, RFP documents, information, announcements, and amendments will be posted in PowerAdvocate; likewise, questions or comments between PG&E and potential IE candidates will utilize PowerAdvocate’s messaging tool (“Messaging”). Requested documents and information shall be provided by potential IE candidate through PowerAdvocate.

PG&E Strategic Sourcing Department shall be the potential IE candidate’s sole point of contact during the RFP process. Potential IE candidate shall not contact other PG&E employees or consultants for information regarding the Project during the RFP period. Failure to comply with this requirement may result in disqualification.

Respondents shall submit Proposal electronically via PowerAdvocate platform by Wednesday, July 17, 2013 at 8:00 a.m. (Pacific Time).

IMPORTANT ANNOUNCEMENT: The California Public Utilities Division Energy Division has granted an extension for the Independent Evaluator (IE) Request for Proposal submissions. Note: This is a 2 business day extension from the original deadline.

PG&E will only consider Proposals submitted through PowerAdvocate. Potential IE candidates will receive an email from Leo Hill, from PG&E’s Strategic Sourcing Department, to register on the PowerAdvocate website.

PG&E will be holding a conference call for potential IE candidates on Monday, June 24, 2013 at 3:00 pm (Pacific Time) to answer additional questions. The dial in number is 1-866-775-2575 (Toll-free North America) or 1-205-354-0119 (International). The Meeting Number is *4159734986*, which must be preceded and followed by the * key.

For questions or matters of general interest raised by any potential IE candidate during the Q&A period, PG&E will issue answers during or shortly after the closing of the Q&A period. PG&E may, in its sole discretion, decline to respond to any e-mail or other inquiry outside of PowerAdvocate Messaging, and will have no liability or responsibility to any potential IE candidate for failing to do so.

If you have additional questions or have not received an invitation to register on the PowerAdvocate website, please email PG&E Independent Evaluator at:

PGEIndependentEvalua@pge.com

Solicitation Schedule

The table below summarizes the estimated RFP schedule. Further detail of each event in the schedule is provided in the RFP Process Milestones, Section II.B, below. The RFP schedule is subject to change at PG&E’s sole discretion at any time. PG&E will notify potential IE candidate of any schedule change.

The expected schedule (Pacific Time) for this RFP for the Projects is:

*IMPORTANT ANNOUNCEMENT: The California Public Utilities Division Energy Division has granted an extension for the Independent Evaluator (IE) Request for Proposal submissions. Note: This is a 2 business day extension from the original deadline.

Potential IE candidate must answer all questions and provide information using the PowerAdvocate Sourcing Intelligence platform as directed by PG&E. Potential IE candidates are to follow directions and submit the required documentations in PowerAdvocate as directed in this RFP. Potential IE candidate may enter and revise information; and upload, delete and re-upload requested documents, anytime during the bid event up until the RFP submittal deadline. It is recommended that potential IE candidate upload the requested document throughout the bid period and well before the deadline. Documents uploaded after the deadline will not be considered.
Potential IE candidate responses can be provided and updated up until the RFP deadline. Thereafter, the RFP will be closed, and potential IE candidate will be unable to make further revisions to datasheets. PG&E will not accept any other form of response to the RFP except those submitted through PowerAdvocate.

RFP Evaluation Process

The goal of the Independent Evaluator RFP is to select qualified parties for inclusion in the PG&E IE pool. Such an inclusion in the IE pool is not a guarantee of specific work or projects.
PG&E will use an initial pre-screening process in the RFP. For parties submitting bids that pass the pre-screening process, PG&E will assess a party’s bid by judging relevant experience and background of key personnel and the competitiveness of offered pricing.
PG&E also considers potential IE candidates plan to support PG&E’s program goal’s (i.e. supplier diversity, green supply chain, etc.), conformance to PG&E’s stated terms and conditions and potential IE candidate’s financial stability,

PG&E and PG&E’s PRG will also conduct interviews with selected potential IE candidates and any final recommendation, for inclusion of a party in the IE pool, will be reviewed and approved by the CPUC’s Energy Division.

Additionally, potential IE candidate’s submittals will be evaluated to determine their completeness, clarity, and conformance to RFP instructions. If it is difficult or overly time-consuming to evaluate potential IE candidate’s submittals, then potential IE candidate may be disadvantaged in the evaluation process and may be disqualified.

To evaluate the bids, PG&E will consider the following elements of the proposed documents and data (in no particular order):

• Company Financials
• Company Programs (such as environmental performance, continuous improvement, and quality assurance and control programs)
• Supplier Diversity
• Conflict of Interest
• Equal Employment Opportunity Commission complaints
• Technical Experience – The technical criteria for final selection will be based on demonstrated skill and knowledge in:
  • Electric and natural gas energy products and processes
  • Turnkey projects
  • Developing protocols, monitoring negotiation processes
  • Written and presentation ability
  • Energy products (e.g. renewable, conventional, combined heat and power, qualifying facilities, energy storage, resource adequacy, greenhouse gas compliance and products, and natural gas, conventional)
  • Differences of technologies (e.g. turbines, and renewable technologies)
  • Power and gas market derivatives (e. g. futures, swaps, contracts, options)
  • Standards and industry practices of energy products, processes, and power purchase agreements
  • Qualitative and quantitative modeling analysis
  • Qualitative and quantitative modeling analysis
  • Tax equity type projects
• Conformance to PG&E’s stated Terms and Conditions
• Pricing
• Submission of Required Documents for Proposal – A proposal will be deemed complete when the potential IE candidate has completed and submitted the following documents:
  • Master Service Agreement – with any exceptions to the terms and conditions must be specifically objected to by “redlining” each article and providing the alternative language in the response. Failure to address said exceptions in the Proposal will be deemed a waiver of right to take exceptions and as an acceptance of all said Terms and Conditions at time of award.
    • Long Form (Contract)
    • General Conditions for Consulting Services II (Sensitive Information)
    • Attachment No. I Specific Conditions (Specification for Independent Evaluator Services)
  • Certificate of Insurance to reflect adherence to PG&E’s Insurance Requirements, as stated in Article VII of PG&E’s General Conditions Consulting Services II.
  • Declaration Regarding Conflict of Interest for Independent Evaluator (in Compliance with Decision 07-12-052)
  • Independent Evaluator Questionnaire through PowerAdvocate platform

• IE RFP Solicitation Protocol (PDF, 78 KB)
• PGE Coversheet Long Form Contract (PDF, 104 KB)
• General Conditions - Consulting Services Sensitive Data (PDF, 444 KB)
• PGE Specific Conditions (PDF, 613 KB)
• PGE Conflict of Interest (PDF, 19 KB)
• PGE Questionnaire (PDF, 87 KB)

If you have additional questions regarding submittal of Proposals, please email PG&E Independent Evaluator at:
email to PGEIndependentEvalua@pge.com