SDG&E 2015 Solar Energy
BOT RFP Bidder’s
Conference
Conf call / Webinar & In-person
Seminar Rooms
Century Park, Building 6
8315 Century Park Ct, CP6
San Diego, CA 92123
By Phone:
April 14, 2014
Estimated time:
10:00 am to 11:30 am
Updated / corrected as of: 4/13/15
Audience link:
Call-in (866) 261-7147
Pass Code: 1654925
https://engage.vevent.com/rt/sempra/index.jsp?seid=107
Agenda
Subject
Estimated Time
1
Welcome
10:00AM – 10:05AM
2
Legal Disclaimers
10:05AM - 10:10AM
3
SDG&E and Supplier Diversity
10:10AM – 10:20AM
4
Solicitation Overview
10:20AM – 10:40AM
5
Overview of the Independent Evaluator’s Role
10:40AM– 10:45AM
6
Schedule
10:45AM - 11:00AM
7
General Q&A Session
11:00AM - 11:30AM
2015 Solar Energy
BOT RFP - Bidders Conference
Location
Seminar Rooms, CP
Bldg 6
Seminar Rooms, CP
Bldg 6
Seminar Rooms, CP
Bldg 6
Seminar Rooms, CP
Bldg 6
Seminar Rooms, CP
Bldg 6
Seminar Rooms, CP
Bldg 6
Seminar Rooms, CP
Bldg 6
2
Welcome
Dan Baerman
Director, Origination & Portfolio Design
3
3
Legal Disclaimers
Dan Baerman
Director, Origination & Portfolio Design
4
4
Legal Disclaimers: Antitrust Guidelines
& Document Conflict
Antitrust:
• All participants in today’s meeting shall comply with antitrust guidelines. These
guidelines direct meeting participants to avoid discussions of topics or behavior that
would result in anti-competitive behavior, including collusion, price fixing, bid
rigging, restraint of trade and conspiracy to create unfair or deceptive business
practices or discrimination, allocation of production, imposition of boycotts and
exclusive dealing arrangements
Document Conflict:
• This presentation is intended to be a summary level discussion of the information
and requirements established in the SDG&E 2015 Solar Energy RFP - Bidders
Conference Materials. To the extent that there are any inconsistencies between the
information provided in this presentation and the requirements in the RFP
Materials, the RFP Materials shall govern
SDG&E 2015 Solar Energy
RFP - Bidders Conference
5
5
SDG&E
and
Supplier Diversity
Brad Mantz
E&FP DBE Ambassador
http://www.sempra.com/about/supplier-diversity
6
6
Diverse Supplier Initiative
General Order (GO) 156:
• Adopted by the California Public Utilities Commission in 1986
• Promote greater competition among utility suppliers by expanding the available
supplier base and to encourage greater economic opportunity for women, minority,
and disabled veteran owned businesses who have been historically left out of utility
procurement
Fast Forward to 2014 at SDG&E:
• 44.4 percent, or $492 million,
worth of goods and services with DBEs
SDG&E 2015 Solar Energy
RFP - Bidders Conference
7
New GO 156 Electric Procurement Requirements
• Starting in 2012, Utilities were required to add separate reporting on
electrical procurement spends
• The California IOUs developed standard reporting formats and definitions
with the CPUC
• The IOUs continue their outreach efforts with DBE firms in all markets –
conventional, renewable, capacity and other products including those that
are being solicited in this RFP
SDG&E 2015 Solar Energy
RFP - Bidders Conference
8
Supplier Diversity Certification*
• Minority- or woman-owned company
− California Public Utilities Commission (CPUC) Supplier Clearinghouse (free)
• Service Disabled Veteran Business
− State of California, General Services Office of Small and Disabled Veteran
Business (OSDC)
• NMSDC
− Regional affiliates of the National Minority Supplier Development Council
(NMSDC)
• Others
− Small Business Administration 8(a) (SBA)
− Women Business Enterprise Council (WBEC-WEST)
− State and municipal government agencies
*Certification does not guarantee any business enterprise the right to bid or receive a contract.
SDG&E 2015 Solar Energy
RFP - Bidders Conference
9
Supplier Diversity Contact Information
Erica Beal
DBE Program Manager
EBeal@Semprautilities.com
858-636-5538
Brad Mantz
Energy Contracts Originator & E&FP Diversity Lead
emantz@semprautilities.com
858-654-1588
SDG&E 2015 Solar Energy
RFP - Bidders Conference
10
Solicitation Overview
Frank Thomas
Manager - Electric Project Development & Business Planning
http://www.sdge.com/SolarEnergyProjectRFP
11
11
SDG&E Solar PV Off-take Opportunities
 FiT provides opportunity for up to 3 MWac
 Upcoming RAM provides statewide opportunity for up to 20 MWac
 CPUC approved Solar Energy Project allows up to 26 MWdc
 Solar Energy Project was approved by the CPUC September 2, 2010
• Program has a capacity total up to 26 MWdc for projects 1 to 5 MWdc
►
Must be interconnected to SDG&E distribution system
►
No impact to grid ~ grid upgrades within cost cap
• SDG&E property being developed for 7.2 MWdc via 2011/12 solicitation
• 2013 SDG&E elected not to pursue further self-build
• Approximately 19 MWdc left uncommitted
• Projects need to reach commercial operation by April 11, 2016
• SDG&E not obligated to further procure
12
Solar PV Build-Own-Transfer Project Opportunities
 In 2015, SDG&E received several requests from developers of existing local
solar projects to sell to SDG&E.
 SDG&E distribution interconnection queue shows 14 solar projects in 1 to 5
MW range completed or in process.
 2015 Solar Energy Project Build-Own-Transfer Solicitation
13
13
2015 Solar Energy Project Solicitation
 SDG&E expected cap: $2.50/Wac
• Below 2010 CPUC authorized cap
 Projects to be build-own-transfer (BOT) w/ O&M agreement
• O&M cost not to exceed CPUC price cap ($25/kW/yr escalated)
• 10 year O&M agreement tied to warranty term/performance guarantee
 Requires compliance w/SDG&E technical specifications
 Requires environmental permits approved and interconnection agreement
completed by December 31, 2015
 Eligibility likely only those that have started permitting and interconnection
studies.
 SDG&E reserves right to refuse any and all bids, modify or terminate
solicitation at any time, without notice and without liability or obligation
14
Offer Form Overview
• Excel-based offer(bid) forms
• Spreadsheets are protected(locked) so only data entry fields should
be editable
• DO NOT try to add rows, columns, sheets, or in any way change the layout
of your offer form
• If you find any errors, or have any problems using the offer forms, please
contact us at SDGESolarEnergyProjectRFP@semprautilities.com
immediately
15
RFP Evaluation Topics
Quantitative
Category
Rank
Weighting
Qualitative Category
Rank
Weighting
Score
(1= Low, 5= High)
(1= Low,
5= High)
Pricing (Energy)
50
Performance
(Capacity)
50
Total Score
Score
100
SDG&E reserves the right to change evaluation
criteria, weighting or basis at anytime.
Conformance to Performance
Specification
20
Proposed Equipment and Related
Warranties and Guarantees
15
Conformance to Terms and
Conditions
15
Project Team and Experience
10
Local Content
10
Company Financials
Company Programs
5
5
Supplier Diversity
5
Past Schedule Performance
5
Subcontracting & Partnership Plan
5
Completeness, Quality and
Responsiveness of Proposal
5
Total Score
100
16
Collateral Requirements & Fees
 No Collateral required
 Shortlist Fee
• Due after notice of shortlisting
• Due at or prior to start of contract negotiations
• Refundable if contract is not executed
• Fee: $20,000
17
Overview of Credit Application
General Information
Legal Company Name (Legal Entity entering into Agreement)
Doing Business As (DBA)
_________________________________________________________________________________________________________ __
Credit Support Provider (Legal company name of Guarantor)
Street Address
City
State
Zip Code
Federal Tax ID #
Organized & existing under the laws of:
(State)
Year Incorporated/Established
Primary Contacts:
Credit Issues Contact:
Name
Title
Phone
FAX
E-Mail
Title
Phone
FAX
E-Mail
Business Issues Contact:
Name
RFO Service Type:
Estimated Volumes of Service Offered (May need to attach separately):
____________________
Please provide the following information with this application:
Most recent three (3) fiscal years’, CPA-audited, financial statements including notes to the financial statements.
The most recent interim financial statements.
A list of corporate affiliates, including addresses and relationship to your company/entity (Corporate Organization Chart).
When using a credit support provider, include most recent three (3) fiscal years’, CPA-audited, financial statements of the credit support provider.
No need to attach financial statements when they are available in the web, provide address:____________________________________
18
Overview of the
Independent Evaluator’s
Role
Barbara Sands
PA Consulting
19
19
Independent Evaluator Introduction and Role
• Jonathan Jacobs and Barbara Sands of PA Consulting Group will be the
Independent Evaluators (“IEs”) for this solicitation. Both Jonathan and
Barbara have been the IE for previous SDG&E’s RFOs (e.g., RPS, RAM, allsource RFO and peaking capacity RFO)
− The role of the IE is to ensure that SDG&E’s evaluation of bids is transparent
and that all bidders are treated fairly and equitably
− The IE is expected to assure that affiliate and utility owned bids are not favored
− The IE will also ensure that bid compliance decisions are fair
− The IE oversees the modeling of the bids including how each bid is represented
by the modeling
The IE provides advice to SDG&E on evaluation issues as they arise
20
Schedule
Frank Thomas
Manager - Electric Project Development & Business Planning
21
21
RFP Schedule
Task
Week
Target Date
Notice to potential respondents, posting of RFP to SDG&E website, post
technical specifications to PowerAdvocate
1
April 3, 2015
Post O&M contract to PowerAdvocate
Bidder’s conference~ Location to be posted on SDG&E RFP website.
2
3
April 7
April 14
Post BOT Contract to PowerAdvocate
Q&A Question submittal/response deadlines
Bids Due~ No later than 5 PM PST
Evaluation completed
Notice To Shortlisted Bidders
Contract Negotiations completed & executed
Advice Letter Filed
CPUC Approval
Notice to Proceed
Interconnection agreements & environmental permitting completed
5
5
7
9
9
12
13
25
25
39
April 29
May 1/May6
May 13
May 27
May 29
June 16
June 22
September 21
September 22
December 31, 2015
Commercial Operation
53
April 11, 2016
22
Schedule Challenges
 Compressed schedule
• Commercial operation by April 11, 2016 (asset transfer May 2016 after
performance testing acceptance)
• Environmental permits & interconnection agreements executed by
December 31, 2015
• 3 months for Tier 2 Advice Letter approval (2012 approval took < 2 months)
• Limited time for contract negotiations
23
General Q&A Session
24
Appendix
General Q&A Guidance &
PowerAdvocate - Offer Submittal Process Overview
25
General Q&A Guidance
• SDG&E will post questions and answers on the 2015 Solar Energy solicitation
website (http://www.sdge.com/SolarEnergyProjectRFP)
• Questions from today will be written down; all questions and answers will be
posted on the RFP website
• Questions can be submitted to SDGESolarEnergyProjectRFP@SempraUtilities.com at
any time until the question submittal deadline
• Questions received (and answers) will be posted to the website periodically
• Deadline to submit questions: May 1, 2015
− SDG&E will post the final set of answers no later than May 6, 2015 (offers are due on
May 13, 2015)
26
Registration and Logging On
Ways to Register:
1. Receive an invitational email from SDG&E that includes a link to the PowerAdvocate® website
2. Register as a first-time user on http://marketing.poweradvocate.com/
• Request for access using the Referral Information
3. Request for access using the PowerAdvocate® link provided in the RFP documents
How to Log On:
1. Launch a web browser and go to: www.poweradvocate.com, and then click on the orange Login
button
2. Enter your account User Name and Password (both are case-sensitive)
3. Click Login
27
27
The Supplier Dashboard
28
28
Accessing the RFP Event and Submitting Documents
How to Access the RFP Event from Dashboard:
1. To download the RFP package, click
or select the 1. Download Documents tab
• BOT Contract (to be posted by April 29)
• Performance Specifications
• O&M Contract
• Executable bid forms
• Attestation template (to be posted by April 29)
• Credit Application
2. To upload documents, click
or select the 2. Upload Documents tab. Select the
“Commercial and Administration” Document Type, then click Browse to navigate to
your document and click Open. Finally, click Submit Document
•
Go to http://www.sdge.com/2015-sdge-solar-energy-project-bot-request-proposals for a
full list of required forms and documents
29
29
More Information & Additional Help
PowerAdvocate Support
• Support@poweradvocate.com
• (857) 453-5800
Online Help
• Access the Help System at any time by clicking on the Help button
30
30
PowerAdvocate - Top Eight Mistakes
8.
Inconsistent contract terms between worksheets
• Prices and deliveries should start at the same date as the contract start date. Deliveries
and prices should stop in the final contract year. Pricing forms for contracts of 15 year
terms that only have 10 years of pricing and deliveries, or any other mismatch that is not
explained in the pricing form, may be declared non-conforming and rejected
7.
No specific project location
• At the very least, a bid must have a fixed physical location. Entering vague information
such as “Anywhere in Southern California” or “Any location in conformance with CEC
regulatory guidelines and California Public Utilities Code” will result in the bid being
declared non-conforming and rejected.
6.
Using incorrect units
• Offer form entries that are inconsistent with the units shown at the top of the pricing
form column may require corrections. For example: $/MWh vs. cents/kWh
SDG&E 2015 Solar Energy
BOT RFP - Bidders Conference
31
31
PowerAdvocate - Top Eight Mistakes
5.
Bidding DC capacity and energy instead of AC capacity and energy
• Important for solar PV developers. Utilities do not sell DC electricity to retail customers. Bidding DC
megawatts and megawatt-hours will cause inaccurate contract evaluations, and such bids may be
declared non-conforming and rejected
4.
Adding or renaming worksheets
• If the bid has multiple options for pricing/COD/deliveries/etc., fill out separate pricing forms for each
option. Adding worksheets, or renaming worksheets, create problems with interpretation and
processing, and the bid may be declared non-conforming and rejected
3.
Wrong project technology
• Make sure that the Project Information form describes the technology as “Solar PV” if it is solar
photovoltaics, “Wind “ if the project is wind, etc. For projects that are a combination of technologies,
enter “Hybrid”
2.
Pricing form data inconsistent with project description form
• The Project Description Form and the Pricing Forms should describe the same project and pricing
options. If options are submitted that are inconsistent with the Project Description Form, the options
may be declared non-conforming and rejected. If none of the submitted pricing forms match the Project
Description Form, the entire bid may be rejected
SDG&E 2015 Solar Energy
BOT RFP - Bidders Conference
32
PowerAdvocate - Top Eight Mistakes
1. Making the utility fill out your bid form
• Bidders must be evaluated fairly, and the utility must demonstrate that bidders have
been treated equally in an RFP. Creating ambiguities in a pricing form that forces the
utility to “fill out” critical sections, either as additions or corrections, is not only a
time-consuming process that can lead to inaccuracies, but can also be construed as
special treatment of bidders, creating conflict of interest and jeopardizing the
integrity of the RFP process
• If you have made mistakes in your pricing forms, you can notify us by email
(SDGESolarEnergyProjectRFP@semprautilities.com), but you must make the
corrections yourselves and submit them separately, with a notice to us that the
revised form replaces the form previously submitted. Please include the name of
the form to be replaced and the date of the original submission. All corrections
must be submitted before the bid closing deadline. Failure to submit corrected bid
forms may result in a bid being declared non-conforming and rejected
SDG&E 2015 Solar Energy
BOT RFP - Bidders Conference
33