Mid-Term Reliability RFO – Energy Imports

San Diego Gas & Electric Company (“SDG&E”) seeks through this Integrated Resources Plan (“IRP”) Reliability Request for Offers (“Mid-Term IRP Reliability RFO”) to procure resources to meet electric system reliability needs as required by California Public Utilities Commission ("CPUC") Decision (“D.”) 21-06-035. The Decision requires SDG&E to solicit offers from owners and operators for the purchase of eligible resource adequacy (“RA”) to come online by August 1, 2023, June 1, 2024, June 1, 2025, or June 1, 2026. 

The Commission adopted D.23-02-040 which requires SDG&E to solicit additional incremental offers from owners and operators for the purchase of eligible RA to come online by June 1, 2026, and June 1, 2027. Long lead-time resources, including long duration energy storage and firm zero-emitting resources, may be postponed coming online by June 1, 2028. SDG&E will be launching new phase(s) of the Mid-Term IRP Reliability RFO in the coming months to solicit offers for the purchase of eligible RA to meet the remaining requirements of D.21-06-035 and D.23-02-040.

Issued on February 28, 2023, D.23-02-040 Ordering Paragraph 8 states that “For enhanced reliability purposes and compliance with the generic capacity requirements of D.21-06-035 or this order, but not for the Diablo Canyon replacement capacity or long lead-time resource procurement required in D.21-06-035, a load serving entity may contract for imported energy as a bridge until the online date of a new compliance resource, from any resource and with any counterparty, for a period of not more than three years. The bridge contract for imported energy must meet resource adequacy requirements at the time the contract is executed.”

Products Solicited & Submittal Documents

Specifically, SDG&E is launching this Request for Offer to seek submission of imported energy offer(s) for the purchase of eligible RA as bridge capacity to meet electric system reliability needs in D.21-06-035 and D.23-02-040.

  • The offered imported energy must follow the eligibility and counting rules of resource adequacy requirements at the time of contract execution and with a delivery start date of June 1, 2024.
  • The proposed contract term may cover any combination of months between June 1, 2024, and May 31, 2025, and is not limited to a full continuous one-year term.
  • There is no minimum quantity requirement for the product.
  • For non-resource-specific RA imports, an energy product that cannot be curtailed for economic reasons shall self-schedule into the California Independent System Operator markets, consistent with the timeframe established in the governing contract.
  • SDG&E will utilize the Edison Electric Institute (“EEI”) Master Purchase & Sale Agreement or Western Systems Power Pool (“WSPP”) Agreement to execute any agreement(s) that may result from this RFO.

RFO Schedule

The following are the key deadlines that apply to this RFO. SDG&E reserves the right to revise this schedule at any time and at SDG&E's sole discretion. Respondents are responsible for accessing the RFO website for updated schedules and possible amendments to the RFO or the solicitation process. This RFO will remain open until a closing date is determined.

No

Item

Date

1

RFO Issued

July 5, 2023

2

SUBMISSION DATE STARTS ON

Offers must be uploaded to and received on PowerAdvocate®

 

July 14, 2023

3

SHORTLIST NOTIFICATION START ON

7 Business Days After Receiving Submission

4


SHORTLISTED RESPONDENTS ACCEPTANCE/WITHDRAWAL**

3 Business Days After Shortlist Notification Date

5

SDG&E commences contract negotiations

1 Business Day After Shortlist Acceptance

6

Target date to complete contract negotiations for June 1, 2024 start date deliveries

August 18, 2023

* Negotiation time will vary depending on proposal specifics, including proposed contract modifications. CPUC filing requirements may also affect negotiation milestones.

** After evaluating offers, SDG&E will notify shortlisted Respondents of their awards according to the Schedule above. If Respondents do not accept SDG&E’s shortlist award on or before the date in the Schedule, SDG&E will discontinue negotiations on the applicable award. Offer prices must be held firm until completion of contract execution. 

 

Submitting Proposals 

Proposals must be submitted via PowerAdvocate. Respondents intending to bid but who do not yet have an existing account with PowerAdvocate® must first register to create a username/password to receive access to the event (event code 140188). Users with an existing PowerAdvocate® account may request access using:  

For imported energy, please submit the following documents with the offer(s).

  1. Mid-Term Reliability Import Energy Offer Form 
  2. Credit Application 
  3. DBE Subcontracting Goal and Reporting 

Qualitative factors and benefits may be used to determine advancement onto the shortlist or evaluate tie-breakers, if any. In addition, SDG&E analyzes the qualitative aspects of each conforming offer to establish how well the offer satisfies priorities set out by the CPUC, including supplier diversity. SDG&E strongly encourages Diverse Business Enterprises (“DBEs”), Women-Owned, Minority-Owned, Disabled Veteran-Owned, Lesbian-Owned, Gay-Owned, Bisexual-Owned and/or Transgender-Owned Business Enterprises (“WMDVLGBTBEs”) as defined in G.O. 156, to participate in this RFO. Furthermore, SDG&E strongly encourages developers to utilize DBEs during various stages of project development and construction. As a part of G.O. 156, SDG&E will require developers to identify, verify and report their DBE contractors/subcontractor spending if any. Additional information on SDG&E’s DBE program can be found at: http://nyra.vaftizo.com/moreinformation/doing-business-with-us/supplierdiversity and http://www.cpuc.ca.gov/puc/supplierdiversity.

 

RFO Communication

All questions or other communications regarding this IRP Reliability RFO must be submitted via email to BOTH [email protected] with a CC to [email protected] (Independent Evaluator).