REQUEST FOR PROPOSALS FOR TRANSMISSION MUST RUN AND
LOAD REDUCTION SERVICES
IN
GRANDE PRAIRIE AREA, ALBERTA
ISSUED
DECEMBER 16, 2005
1.0
GENERAL INFORMATION
1.1
RFP
(1)
The Independent System Operator, operating as the Alberta Electric System
Operator, (the "AESO") is issuing this Request for Proposals ("RFP") to retain
one or more service providers (individually, and collectively, the "Service
Provider") to provide all or a portion of the services (the "Services") described
in Schedule A (the "RFP Data Sheet").
(2)
The AESO has a requirement to procure the Services (being types of Ancillary
Service) from a generating facility or load (in either case, a "Facility") within
that area in the Province of Alberta specified in the RFP Data Sheet (the
"Services Area") in order to maintain security of the Alberta interconnected
electric system (the "System").
(3)
Any legal person may submit a proposal for the provision of Services (the
"Proposal") in response to this RFP. Any such person who submits a Proposal is
referred to as a "Bidder" and the Bidder and/or Bidders, if any, selected to be
awarded an Agreement are referred to as "Successful Bidder(s)". The
agreement, if any, that is awarded to a Successful Bidder shall be substantially in
the form set out at Part I or Part II of Schedule E (as applicable, the
"Agreement").
(4)
The AESO's process to select a Service Provider (the "RFP Process") will
commence with the issuance of this RFP and will terminate on the earlier of (a)
the execution of the Agreement by the Successful Bidder(s) and the AESO, or (b)
the election by the AESO to not proceed with the RFP or otherwise cancel this
RFP.
(5)
The AESO shall distribute the RFP and any amendments or supplements which it
determines to make by posting same on its website at www.aeso.ca.
2500, 330 - 5th Ave SW Calgary, Alberta T2P 0L4
t (403) 539-2450 | f (403) 539-2949 | www.aeso.ca
-22.0
PROPOSAL SUBMISSION AND IRREVOCABILITY
2.1
2.2
SUBMISSION OF PROPOSALS
(1)
Each Bidder shall deliver one original and one copy of its Proposal before 5:00
p.m. (Calgary time) on January 4, 2006 (the "Submission Deadline") to the
AESO at the address set out in the RFP Data Sheet. Proposals received after the
Submission Deadline will be returned unopened to the sender, courier collect. A
Bidder may submit multiple Proposals.
(2)
Bidders shall deliver their Proposal in a sealed envelope or package with the
Bidder's full legal name and return address and the label "Confidential Ancillary
Services Bid" clearly displayed on the outside thereof.
PROPOSAL IRREVOCABILITY
Subject to the Bidder's right to withdraw the Proposal by written notice to the RFP
Project Manager before the Submission Deadline, the Bidder's Proposal shall be
irrevocable and shall remain in effect and open for acceptance until completion of the
RFP Process. The RFP Project Manager is identified in the RFP Data Sheet.
3.0
PROPOSAL CONTENT
3.1
GENERAL FORMAT
Each Bidder shall examine all instructions, terms and conditions, forms and information
in the RFP and, in a clear, concise and legible manner, complete and submit all
documentation and information required by RFP Section 3.2.
3.2
CONTENTS OF THE PROPOSAL
Each Bidder shall submit a Proposal that consists of the following documents (the
"Proposal Documents"): (a) a Technical Submission Section that consists of the
Proposal Submission Form and the Technical Submission, (b) a Price Submission
Section, and (c) an Agreement Submission Section.
3.3
PROPOSAL SUBMISSION FORM
For each Proposal, a Bidder shall complete and execute the Proposal Submission Form
attached as Schedule B.
3.4
TECHNICAL SUBMISSION
The Technical Submission shall consist of the submission by the Bidder of the legal,
operational and technical information required pursuant to the RFP Data Sheet.
3.5
PRICE SUBMISSION SECTION
The Price Submission Section shall consist of a completed Price Form. The Price Form
is attached as Schedule C.
3.6
AGREEMENT SUBMISSION SECTION
The Agreement Submission Section shall consist of (a) a statement that the Bidder, if
selected as the Successful Bidder, is prepared to execute the form of Agreement without
-3amendment, or (b) the comments of the Bidder in respect of the form of Agreement
which, if it were selected as the Successful Bidder, must be addressed prior to execution.
4.0
EVALUATION OF PROPOSALS
The AESO will evaluate all Proposals on the basis of the following criteria:
5.0
(1)
compliance with the requirements and terms of this RFP and applicable law;
(2)
the amounts to be paid by the AESO for the Services
(3)
operating history of the facility;
(4)
the ability of a Proposal to satisfy the technical requirements set forth in
Operating Policy 501 located on the AESO's website at www.aeso.ca and the
technical requirements specified in Schedule D (collectively, the "Technical
Requirements");
(5)
the operational characteristics of the Facility, including operational
characteristics required to be provided by the Bidder pursuant to this RFP;
(6)
the effectiveness of the Facility or site of the Facility for addressing voltage
support, where effectiveness for a Generating Unit is determined as the ratio of
unit output, in megawatts, to the mitigation effect1;
(7)
the ability of the Bidder to provide the Services for the term required;
(8)
the adequacy of the Services proposed to be provided for the requirements of the
System, including any limitations or restrictions on the ability of the Bidder to
provide such Services in accordance with the Agreement and the Technical
Requirements;
(9)
the comments or lack of comments of a Bidder on the form of Agreement;
(10)
the financial standing or resources available to the Bidder;
(11)
the number of Bidders and volume of Services offered into this RFP; and
(12)
such other criteria as the AESO in its sole discretion, acting reasonably, considers
appropriate.
AESO DISCRETION
The AESO may, in its sole discretion and at any time during the RFP Process, without
liability, cost or penalty:
1
(1)
determine the relative weighting of the evaluation criteria set out in RFP Section
4.0 and the ranking of Proposals and reject or accept any or all of the Proposals;
(2)
elect to enter into negotiation with none, some or all of the Bidders in respect of
the Agreement with a view to finalizing a form of Agreement with any such
Bidder;
For example, a Generating Unit (as defined in the Electric Utilities Act) located at the worst bus within the Services Area would have an
effectiveness of 1.0, and the further the Generating Unit is from the critical bus, the lower the effectiveness factor becomes.
-4(3)
alter the Submission Deadline or any other aspect of this RFP; and
(4)
cancel this RFP and subsequently advertise or call for new Proposals for the
subject matter of this RFP.
Without limiting the generality of the foregoing, in submitting a Proposal, each Bidder
acknowledges that the AESO is not necessarily issuing this RFP to obtain Services at the
best possible price, but rather to obtain Services (in a competitive context) that meets the
needs of the System, as determined by the AESO, in its sole and absolute discretion, and,
as such, the AESO may elect to accept any Proposal which may not have the lowest
price. The AESO shall not be liable for any expense, cost, loss or damage occurred or
suffered by any Bidder, or any person connected with any Bidder, as a result of any
action referred to in this Section.
6.0
AGREEMENT FINALIZATION
6.1
AGREEMENT FINALIZATION
(1)
Subject to RFP Section 5.0, the AESO will, promptly following completion of its
evaluation of a Proposals, notify the Successful Bidder(s), in writing, that it has
been selected as a Successful Bidder(s).
(2)
At or following the time the Successful Bidder(s) are notified pursuant to RFP
Section 6.1(1), the AESO and the Successful Bidder(s) will finalize and execute a
copy of the Agreement.
(3)
If a Successful Bidder and the AESO are unable to finalize and execute the
Agreement within a reasonable period of time following the notification
referenced in RFP Section 6.1(1), the AESO may, in its sole discretion, take any
one or all of the following actions:
(a)
terminate all discussions to enter into the Agreement with that Successful
Bidder and cancel its identification of such Bidder as a Successful
Bidder, whereupon such Bidder acknowledges and agrees that it shall not
be entitled to any costs, expenses or damages of any nature from the
AESO incurred or suffered by such Bidder as a result of such termination
and cancellation;
(b)
select another Bidder to enter into the Agreement; and
(c)
pursue any remedy available to the AESO under applicable law.
-5SCHEDULE A
RFP DATA SHEET
RFP SECTION
REFERENCE AND
DESCRIPTION
RFP Section 1.1(1) Description of
Services
ITEM
The AESO is seeking:
a) transmission must run ("TMR") service, which involves the operation
of one or more Generating Units within their range of continuous
operating capability for the purposes of maintaining System security, at
the following level of capacity (in megawatts), from at least one
Generating Unit for an amount (in megawatts) up to that specified
below and for the following period of time; and/or
b) load reduction service ("LRS"), which involves the reduction of load
from at least one Facility for the purposes of maintaining System
security, for an amount (in megawatts) up to that level of capacity and
for the following period of time:
TMR and LRS Service Parameters
Time Period
From as soon as practical until March 31, 2006 or, if
the AESO exercises its option to extend the term of the
Agreement, September 30, 2006
________________________________________________________________
Required TMR
(in megawatts)
10 approximately
________________________________________________________________
Required LRS
50 approximately
(in megawatts)
________________________________________________________________
A Service Provider shall provide the Services (or the portion thereof for which
it is a Successful Bidder) in accordance with the terms of the Agreement.
RFP Section 1.1(2)–
Services Area
The Services Area is the area set forth within the following diagram:
Service Area Map
-6RFP Section 2.1(1)
Address of Submission
Bidders shall submit their Proposals to the AESO at the following address:
Independent System Operator, operating as the AESO
2500 Calgary Place
330-5th Avenue S.W.
Calgary, AB T2P 0L4
Attention:
RFP Section 2.2 - RFP
Project Manager
Mr. Paul Barry
The RFP Project Manager is Mr. Paul Barry. The co-ordinates of the RFP
Project Manager are:
Independent System Operator, operating as the AESO
2500 Calgary Place
330 - 5th Avenue S.W.
Calgary, AB T2P 0L4
Attention:
Mr. Paul Barry
Fax:
403.539.2949
E-mail:
paul.barry@aeso.ca
RFP Section 3.4Legal, Operational and
Technical Information
The Bidder must submit the following legal, operational and technical
information:
(a)
Bidder: Detailed disclosure of the legal name and direct and indirect
ownership of the Bidder.
(b)
Operational/Technical Information: In respect of each Generating Unit
in a Facility from which TMR is to be provided, provide as much of the
following information and operational characteristics as possible:
(i)
name and location of the unit/facility and the substation
connecting same to the System and the volume of TMR
proposed to be provided from the unit(s);
(ii)
hourly data on the operating history of the Facility for the last 2
years;
(iii)
maximum continuous rating ("MCR") of each unit;
(iv)
unit output (in megawatts) as a function to ambient temperature
changes;
(v)
a table listing MCR as a function of ambient temperature or,
where necessary, other factors affecting generating capability of
the unit;
(vi)
minimum continuous operating output of the unit (in
megawatts);
(vii)
maximum continuous operating capability of the unit (in
megawatts);
-7-
(f)
(viii)
unit start up time, measured from dispatch time to
synchronization, and number of cold, warm and hot starts of the
unit;
(ix)
minimum time from synchronization to full load following a
cold start;
(x)
normal and emergency ramp rates of the unit;
(xi)
D capacity curves (in megawatts and megaVArs) of such unit';
and
(xii)
the expected reliability and expected availability of the Facility.
Load Reduction Service: In respect of each Facility from which LRS is
to be provided, provide the following information and operational
characteristics:
(i)
name and location of the Facility and the substation connecting
same to the System and the volume of LRS proposed to be
provided from the unit(s);
(ii)
hourly data on the operating history of the Facility for the last 2
years;
(iii)
maximum and minimum required load reduction rate
(megawatts/minute);
(iv)
maximum and minimum duration of down time once the load is
reduced; and
(v)
maximum and minimum amount of load reduction that can
occur.
-8SCHEDULE B
PROPOSAL SUBMISSION FORM
TO:
Independent System Operator, operating as AESO
2500, 330 - 5th Avenue S.W.
Calgary, AB T2P 0L4
Attention:
Mr. Paul Barry
RE:
Request for Proposals for transmission must run and load reduction services in the Grande Prairie
Area, Alberta issued by the Alberta Electric System Operator on December 16, 2005 (the "RFP")
Bidder Information
1.
2.
(a)
Bidder's registered legal business name and any other name under which it carries on
business:
(b)
Bidder's address, telephone and facsimile numbers:
(c)
Name, address, telephone, e-mail and facsimile numbers of the contact person(s) for the
Bidder:
Offer
With respect to the above noted RFP, we confirm as follows:
(a)
by the submission of our Proposal we submit a binding offer to provide the Services in
accordance with the terms and conditions of the Agreement; for the compensation set out
in the Price Submission Section of our Proposal and in accordance with the RFP;
(b)
our Proposal is based on the terms and conditions of the RFP; and
(c)
we agree to hold our Proposal open for acceptance until the expiration of the RFP
Process.
We affirm and declare that we have sufficiently informed
ourselves in all matters affecting the cost of the Services, that
we have checked our Proposal for errors and omissions and that
the prices stated in this Proposal are each correct and as
intended. It is further understood that we, the Service Provider,
will be compensated for Services provided as called for in the
Agreement.
-9Capitalized terms used, but not defined herein, shall have the
meanings ascribed to them in the RFP.
Dated this _____ day of ____________________, 200 .
Per:
Name:
Title:
- 10 SCHEDULE C
PRICE FORM
With respect to the provision of TMR services, the Bidder shall complete one (but not both) of Parts A
and C of this Price Form for each Proposal. With respect to the provision of LRS services, the Bidder
shall complete one (but not both of) Parts B and C of this Price Form for each Proposal. Capitalized
terms used in this Schedule but not defined below or in the RFP, shall have the meanings provided to
them in the Agreement.
PART A
1.
Calculation of TMR Purchase Price
During those periods when a generating unit in the Facility is dispatched to provide the Services,
the purchase price for such Services (the "TMR Purchase Price") will be calculated on an hourly
basis, and is in units of $/MWh per hour, and will be the greater of:
(a)
(TMR Price – Pool Price) * Must-run MWh; or
(b)
$0.00
Where:
"TMR Price" is in units of $/MWh and will be calculated using the following formula:
(Heat Rate * Fuel Price) + Transmission Tariff + (O&M)
"Fuel Price" is the "Daily Spot Price at AECO C and NIT", excluding weekends, as published in
Canadian Gas Price Reporter, for the applicable day, expressed in units of $/GJ. [Note: Bidder
to provide details of fuel sources other than gas.]
"GJ" means gigajoule.
"Heat Rate" is in units of GJ per MWh, and will be calculated using the following formula:
[Note: Bidder to provide details.]
"Must–run MWh" is in units of MWh per hour and is the lesser of:
(c)
the hourly energy output requested by the System Controller from such unit for the
Services; or
(d)
the hourly energy output produced by such unit, as measured at the [Note: Bidder to
provide details] substation, during an hour when such unit is requested by the System
Controller for the Services.
"MW" or "Megawatt" means one million watts, a watt being the power which generates energy
at a rate of one joule per second.
"MWh" means Megawatt per hour.
- 11 "O&M" represents the "all in" cost at $[Note: Bidder to provide details] per MWh of providing
incremental output from the unit excluding fuel cost and transmission costs.
"Pool Price" is the hourly pool price ($/MWh) as posted on the AESO's website.
"System Controller" has the meaning provided in the Electric Utilities Act (Alberta).
"Transmission Tariff" is the actual cost ($/MWh) of charges from Rate Schedule STS of the
AESO's applicable tariff, including for the applicable loss factor charge or credit.
Notes:
The symbol "*" means multiplied by. For example, Heat Rate* Gas Price means the Heat Rate
multiplied by the Fuel Price.
2.
TMR Availability Payment
A TMR Availability Payment of $[Note: Bidder to provide details] for each hour that the
Facility is Available.
PART B
1.
Calculation of LRS Purchase Price
During those periods when a load at the Facility is dispatched to provide the Services, the
purchase price for such services (the "LRS Purchase Price") will be calculated on an hourly
basis, and is in units of $/MWh per hour, and will be:
(LRS Price) * Load Reduction MWh
Where:
"LRS Price" is in units of $/MWh and is equal to [Note: Bidder to provide details].
"Load Reduction MWh" is in units of MWh per hour and is the lesser of:
(a)
the load requested by the System Controller from such Facility for the Services; or
(b)
the hourly load reduced, as measured at the [Note: Bidder to provide details] substation,
during an hour when such Facility is requested by the System Controller for the Services.
"MW" or "Megawatt" means one million watts, a watt being the power which generates energy
at a rate of one joule per second.
"MWh" means Megawatt per hour.
"System Controller" has the meaning provided in the Electric Utilities Act (Alberta).
Notes:
The symbol "*" means multiplied by.
2.
LRS Availability Payment
A LRS Availability Payment of $[Note: Bidder to provide details] for each hour that the
Facility is Available.
- 12 PART C
The consideration which the Bidder proposes be paid to it for the provision of the Services is as
follows: [Note: Bidder to provide details].
- 13 SCHEDULE D
Technical Requirements
- 14 -
SCHEDULE E
FORM OF AGREEMENT
Part I – Agreement for TMR
Part II – Agreement for LRS