Pacific Gas and Electric Company
2011 Request for Bid for Independent Evaluator
PACIFIC GAS AND ELECTRIC COMPANY
INDEPENDENT EVALUATOR – REQUEST FOR BID
July 2011
Background on Pacific Gas and Electric Company
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:
www.pge.com
Background on Request for Bid (RFB)
In December 2007, the California Public Utilities Commission (CPUC) issued a decision directing the
California investor-owned utilities (IOUs) to use 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
bidders may be. The CPUC directed the IOUs to:

Have a pool of at least three Is;
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Involve the CPUC’s Energy Division in developing the IE scope of work, drafting the IE contract
and issuing the IE solicitation; and
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Develop a comprehensive conflict-of-interest disclosure
This Request for Bids (RFB) is being issued to comply with the CPUC requirements and is seeking
qualified parties to add to PG&E’s current 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 its 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 RFB.
Scope of Independent Evaluator Requirements
The CPUC requires the IOUs to use an IE to monitor:
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Renewable Portfolio Standard (RPS) solicitations and bilaterals, including solicitations related to
PG&E’s Photovoltaic (PV) Program;
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Pacific Gas and Electric Company
2011 Request for Bid for Independent Evaluator
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 related
procurement products, even if not required to do so by the CPUC.
Roles and Responsibilities
Once an IE is added to PG&E’s pool, that organization (including the lead and sub-contactors) will be in
the pool, for a term not to exceed two years. Before the end of the two-year period, the IE will be subject
to a re-evaluation process. An IE may continue to be reappointed to the pool in two year increments,
subject to this re-evaluation process every two years. The specific tasks the IE will perform will include
but may 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 nonprice 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 PG&E’s management and to its 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
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Pacific Gas and Electric Company
2011 Request for Bid for Independent Evaluator
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.
RFB Evaluation Process
PG&E will use an initial pre-screening process in the RFB. For parties submitting bids that pass the prescreening process, PG&E will assess a party’s bid by judging relevant experience and background of key
personnel and the reasonableness of offered pricing. PG&E also considers supplier diversity. More
specifically, criteria for final selection will be based on demonstrated skill and knowledge in:
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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, 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
Tax equity type projects
PG&E and PG&E’s Procurement Review Group (PRG) will also conduct interviews with bidders and any
final recommendation for inclusion of a party in the IE pool will be reviewed by the CPUC’s Energy
Division.
Schedule
The following schedule applies to this RFP. PG&E reserves the right to revise this schedule at anytime
and in PG&E’s sole discretion.
RFB Issued
Bidders Conference
Submission of Bids
On-Site Meeting with PG&E
On-Site Meeting with PG&E’s PRG
Discuss Recommendation with PRG
Notifications to Successful Candidates
Notifications to Other Bidders
Letter to Energy Division
Response from Energy Division
July 19, 2011
July 26, 2011, 3:00-4:00 (Pacific Time)
August 9, 2011, 5:00 pm (Pacific Time)
Weeks of August 16 through August 30
September 13, 2011
October 11, 2011
October 15, 2011
October 15, 2011
October 15, 2011
November 15, 2011
Required Documents for Submission of Bid
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Pacific Gas and Electric Company
2011 Request for Bid for Independent Evaluator
Master Service Agreement (Any exceptions to these terms must be specifically objected to by
“redlining” each article and providing with alternative language in your response. Failure to
address said exceptions in the Proposal at this time shall 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 (form)
Specification for Independent Evaluator Services
Certificate of Insurance to reflect adherence to PG&E’s Insurance Requirements as stated in
Article X of PG&E’s Standard Services Agreement.
Declaration Regarding Conflict of Interest for Independent Evaluator (in Compliance with
Decision 07-12-052)
Independent Evaluator Questionnaire
o Previous written reports evaluating products, processes, or recommendations
o Technical vitae of all possible Independent Evaluator in the Independent Evaluator organization’s
firm
o Rates
o Example of previous clients
o Disclosure of previous work in California (type of work)
o Identification or verification of supplier diversity
The forms are available for download on:
http://www.pge.com/b2b/energysupply/wholesaleelectricsuppliersolicitation/IE_RFB/index.shtml
Proposals shall clearly demonstrate compliance with all requirements in this RFB and shall include a
cover letter signed by an authorized representative.
Please email your electronic response to PGE Independent Evaluator. Please use the e-mail address of:
PGEIndependentEvalua@pge.com
Respondents shall also submit hard copies of the Proposal by the deadline date indicated in the
schedule to the following representative:
Sharon K. Tatai
Pacific Gas and Electric Company
Energy Procurement
P.O. Box 770000
Mail Code B25L
San Francisco, California 94177
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